Volker Wende, Partner at SwanCap, shares insights into the firm’s co-investment strategy, developed over more than two decades and 150+ transactions. In this conversation, he outlines SwanCap’s approach to portfolio construction, GP selection, risk management, and the evolving dynamics of private equity in Europe and North America. Watch the full interview to hear his perspective on building lasting partnerships and navigating today’s co-investment landscape.
"We’re not just allocating capital—we’re building long-term partnerships."
That’s how Volker Wende, Partner at SwanCap, frames the firm's approach to private equity co-investing. Originally spun out of UniCredit in 2013, SwanCap is an investment boutique managing institutional capital for pension funds, insurance firms, and family offices across Europe and the U.S. But the roots of the team go much deeper—with 25 years of experience investing in primaries, secondaries, and co-investments.
In our interview at Zero One Hundred Conferences EU25, Volker shares how SwanCap curates a globally diversified portfolio by partnering with 70+ GPs across Europe and North America—always with a clear focus: buyouts only, in developed markets.
How SwanCap Selects Co-Investments
For SwanCap, co-investing isn’t opportunistic—it’s methodical. Volker outlines their three-layered due diligence process:
Portfolio fit – The deal must align with J-curve expectations and diversification goals.
Asset fundamentals – Market, management, and operations must show long-term value.
Deal structure – Understanding the GP's strategy, pricing, and competitive landscape is essential.
With over 150 co-investments made alongside more than 70 GPs, SwanCap has built a model that prioritizes deep sponsor relationships, repeatable due diligence, and scalable structuring. This approach enables them to efficiently participate in syndicated deals—often within short timeframes.
Risk, Return, and the LP Perspective
Asked about the primary benefits of co-investing, Volker points to the absence of fees and carry, allowing LPs to enhance returns and shape the J-curve. It also provides sector and GP-level exposure—valuable levers in fine-tuning a private equity strategy.
On the flip side, the risks mirror traditional GP investing: concentration, timing, and execution. "Diversification is key, but so is focus," Volker adds. "Too broad, and you dilute returns. Too narrow, and you magnify risk."
ESG Integration and Regional Nuances
SwanCap integrates ESG into its due diligence process through dedicated in-house expertise based in Luxembourg. While European GPs often lead in ESG structuring, U.S. GPs are catching up—particularly around diversity metrics. SwanCap continuously monitors ESG evolution through annual questionnaires and maintains a collaborative approach with its GPs.
Regionally, Volker notes key differences: Europe is fragmented by jurisdiction, creating more localized GP relationships. In contrast, the U.S. offers depth through specialization, like sector-specific buyout strategies.
What’s Next for Co-Investing?
Co-investing, once a niche strategy, has matured—and consolidated. While some opportunistic “cheap money” has faded, a core group of professional players remains, bringing both rigor and relationship to the table.
“The dynamic has shifted,” Volker explains. “GPs now recognize the strategic value of long-term LP partnerships. It’s no longer about filling syndicates—it’s about alignment over decades.”
As SwanCap continues to expand its reach, the firm’s focus remains steady: disciplined selection, deep relationships, and consistent execution. In a crowded market, that may be the ultimate differentiator.
