Opportunity Fund I
A. Overview
| Attribute | Details |
|---|---|
| Fund Size | €100–150 million (est.) |
| Investment Type | Direct equity co-investments |
| Portfolio Companies | 30+ Allocator One underlying fund portfolios, 400+ potential targets |
| Typical Check Size | €250K–€2M per company |
| Fund Duration | 10–12 years |
B. Investment strategy
Opportunity Fund sources deals directly from Allocator One's portfolio of 30+ GPs and their 400+ portfolio companies. When a portfolio company needs growth capital, Opportunity Fund invests directly alongside (or instead of) the lead investor.
You own equity in the company itself, not another layer of fund exposure.
Key differences from fund investments:
- Direct equity ownership (no GP intermediary)
- Faster capital deployment (no LP approval cycles)
- Carry benefit (no double-layer of GP fees)
- Earlier distributions (when companies exit, you get paid directly)
C. Institutional validation: Co-investment benefits
"For LPs, the principal benefit is that co-investment opportunities generally have lower fees than fund commitments. In fact, GPs typically offer co-investment opportunities to their LPs on a no management fee, no carried interest basis." — Cambridge Associates, "Six Things to Know About Co-investments" Source: https://www.cambridgeassociates.com/insight/six-things-to-know-about-co-investments/
"Co-investments offer several potential benefits such as lower fees, improved net returns, accelerated capital deployment (or J-curve mitigation) and diversification. They also provide the ability to control industry sector and geographic exposures directly." — Mercer, Co-investment Strategies Source: https://www.mercer.com/en-fi/solutions/investments/alternatives/co-investments/
"Carried interest is typically around 10 percent for co-investment funds, which is roughly half of what you usually see in traditional private equity funds. Moreover, the underlying co-investments generally do not charge any management fees." — Ripatti, Evli Source: https://www.evli.com/en/articles/evlis-co-investment-strategy
"Co-investing alongside private equity funds has become increasingly important for institutional investors seeking greater control. Since fees are generally not charged on co-investments, institutions making co-investments can leverage the skills of the asset manager while paying lower fees in aggregate." — World Economic Forum, "Direct Investing by Institutional Investors"
"An opportunity fund's primary premise is to invest in the later rounds of breakout portfolio companies in which a manager has previously invested. LPs that do not have direct investing programs can gain exposure to the manager's breakout investments from past funds. The benefit is that the manager should have a highly asymmetric view of the company from prior round investing." — Samir Kaji, Venture Unlocked Source: https://ventureunlocked.substack.com/p/assessing-the-world-of-opportunity
"Institutional LPs looking to co-invest are better off outsourcing this capability to co-investment managers. Such managers are staffed with experienced investment and legal professionals—and have access to diversified deal flow. A recent study found that they outperform traditional direct funds." — BlackRock, "The Advantages of Co-Investments"
D. Deal sources & screening
Pipeline:
- Allocator One GPs surface their breakout portfolio companies
- Investor network (if €30M+ anchor) contributes deal sourcing
- External co-investors (growth funds, strategic investors) partner on deals
Screening criteria:
- Post-revenue, validated product-market fit
- Minimum €50M+ TAM
- Founders with prior successful exits or strong track records
- Pathway to Series B–C within 2–3 years
- Allocator One GP conviction and follow-on intent
E. Portfolio composition (target)
| Stage | Allocation | Expected MOIC | Rationale |
|---|---|---|---|
| Series A | 20% | 4.0x–5.0x | Early stage, high risk/reward |
| Series B | 50% | 2.5x–3.5x | Growth stage, proven traction |
| Series C+ | 20% | 1.5x–2.5x | Late stage, lower risk |
| Secondary | 10% | 1.0x–1.5x | Liquidity, tail risk |
| Blended Expected MOIC | 2.8x–3.5x |
F. Economics
Management Fee:
- 2.0% on committed capital (Years 1–3 deployment)
- 1.0% on deployed capital (Years 4+ deployment)
Carry:
- 20% on profits above 1.0x threshold
- Lower carry than fund vehicles due to direct ownership and reduced operational complexity
Anchor Carry (€30M+ commitments):
- 5% of available carried interest
G. Capital call schedule
- Q1 2026: 25% (~3 months)
- Q3 2026: 25% (~9 months)
- Q1 2027: 25% (~15 months)
- Q3 2027: 25% (~21 months)
Deployment period: 3 years (may extend to 4 years if strong pipeline)
H. Return scenarios
| Scenario | Deployment Timing | Gross MOIC | Net IRR |
|---|---|---|---|
| Conservative | 4 years + slow exits | 2.30x | 18% |
| Base | 3 years + normal exits | 3.10x | 22% |
| Target | 2.5 years + early exits | 3.80x | 26% |
I. Risk factors
- Concentration Risk: Limited portfolio (30–50 companies over fund life); loss of top performer significantly impacts returns.
- Execution Risk: Dependent on Allocator One GP sourcing pipeline; if GPs don't source quality deals, fund sits in cash.
- Timing Risk: Exit timing unpredictable; market downturn delays or prevents exits.
- Dilution Risk: Future funding rounds may dilute investor stake; follow-on capital required to maintain ownership.
- No Liquidation Preference: Direct equity—no preferred return or waterfall mechanics like in fund structures.
J. Investor documents
Access fund documents, due diligence materials, and supporting documentation below.
K. Ask questions about this fund
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