UBS pitches co-investments as gap-fillers, with the due diligence on the LP

Infrastructure allocation gaps usually get closed one of two ways: a higher target, or a new tool. A supplier article carried by IPE Real Assets argues for the new tool. UBS Asset Management's infrastructure unit, ranked 43rd in IPE's 2025 Top 100 Infrastructure Investment Managers, says innovation in infrastructure investment models — co-investments in particular — is helping institutional investors close allocation gaps in a fast-growing asset class.

The headline, "Innovation through imitation," frames the strategy as borrowing rather than inventing. Rather than wait for the next commingled fund, an allocator co-invests alongside a lead GP, applying the underwriting discipline of a direct buyer to a smaller check. It is a familiar pitch to anyone who has sat through a manager update, but the framing carries weight. Co-investments let institutions reach target sizes without committing to blind-pool funds, and they build relationships with general partners ahead of a future fundraising cycle.

The pitch carries a cost. Co-investment requires the LP to bring underwriting talent to the table — modeling, legal, and sector expertise that many pension funds and endowments have only begun to build. A team that treats co-investment as simple fee savings will find itself doing deal-by-deal diligence against a GP that has spent months on the asset.

The paper landed in mid-July, when the article itself calls infrastructure fast-growing. UBS's 43rd-place ranking puts it outside the top tier of the IPE list. Marketing the full toolbox, co-investments included, is one way for a mid-table manager to stay relevant to institutions that increasingly want discretion over what they buy.

The title's "imitation" cuts both ways. If co-investment becomes the standard tool for closing gaps, an allocator's edge is no longer access to deals but the skill to say no to the ones that do not fit. That is harder to outsource than any co-investment agreement.