A Guide to Co-Syndication

At a Glance

• Co-syndication occurs when two or more syndicate leads team up to run a single SPV, combining their LP networks and sharing economics.

• It helps emerging syndicate managers grow faster by expanding deal flow, accessing larger allocations, and meeting new LPs.

• Successful co-syndication requires clear alignment on deal leadership, economics, communication, and follow-on strategy.

• Co-syndication can become a primary channel for high-quality deal flow and a way to “do more with less” by leveraging shared networks and expertise.

• Sydecar’s SPV and Syndicate platform provides the operational backbone for co-syndicated deals, from SPV formation and banking to LP onboarding and ongoing updates.

Co-syndication is when two or more syndicate leads partner to run a single SPV, pooling capital from their respective investor networks and sharing economics. One manager typically sources the deal and secures the allocation, then invites another manager (or managers) to participate. The syndicate leads collaborate on diligence, filling the allocation, and supporting the company, and they split carry and, when applicable, management fees according to an agreed structure.

Co-syndication is especially useful for emerging syndicate leads who want to grow their investor base, access larger allocations, and professionalize their operations without materially increasing overhead.

Why Managers Co-Syndicate

Co-syndication expands both capital and capabilities. For emerging managers, it offers several concrete advantages.

Expand Network and Deal Flow

• Build relationships with other syndicate leads who can introduce you to new founders and sectors.

• See more deals without personally sourcing every opportunity.

• Access curated deal flow that has already been diligenced and allocated.

Grow Your LP Base

• Introduce your LPs to high-quality opportunities sourced by trusted partners.

• Gain exposure to another manager’s investor network; some of those LPs may choose to follow your deals in the future.

• Deepen engagement with existing LPs by giving them access to a broader range of opportunities.

Access Larger Allocations

• Combine investor bases to meet minimum check sizes in competitive rounds.

• Write larger checks into your highest-conviction opportunities.

• Improve your position with founders by reliably filling allocations.

Increase Operational Leverage

• Share responsibility for sourcing, diligence, and LP outreach.

• Run more SPVs without proportionally increasing operational load.

• Earn shared carry economics even when you are not the sole organizer of a deal.

Provide More Value to Founders

• Bring a larger collective network of operators, domain experts, and potential customers.

• Offer founders a single SPV on the cap table, backed by multiple managers aligned on support.

• Build a reputation as a collaborative partner who can coordinate capital and expertise.

Key Considerations for Co-Syndicated Deals

Co-syndication works best when roles, responsibilities, and economics are explicit. Before launching a joint deal, managers should align on the following.

1. Deal Leadership

• Designate a primary deal lead who acts as the main point of contact for the company.

• Clarify who owns negotiation, documentation coordination, and ongoing company communication.

• Define how diligence tasks, memos, and internal investment processes are shared across partners.

2. Economics and Carry Split

• Agree on how carried interest will be split between managers (for example, 50/50 or weighted toward the originating manager).

• Decide whether a management fee will be charged and, if so, how it will be allocated.

• Document any expense-sharing arrangements, including marketing, legal, and platform costs.

3. LP Communication and Expectations

• Establish a communication cadence between managers throughout the investment process.

• Decide how deal updates are drafted, who signs them, and how they are distributed across each manager’s LP base.

• Make sure LPs from both syndicates know who their primary contact is for questions about the investment.

4. Investor Exposure and Relationship Management

• Recognize that inviting your LPs into a co-syndicated deal introduces them to another manager.

• Align on expectations for post-close communication with each other’s LPs (for example, deal-only updates vs. ongoing newsletters).

• Be intentional about how you protect and grow these LP relationships over time.

5. Pro Rata and Follow-On Rounds

• Decide how pro rata rights will be exercised in future rounds.

• Determine how follow-on allocations are split if capacity is limited.

• Agree on a process for situations where one syndicate wants to follow on and the other does not.

6. Exit and Distribution Preferences

• Align on expected distribution mechanics (cash vs. shares).

• Set expectations for decision-making around secondary sales, tender offers, or post-IPO liquidity.

• Define a process for coordinating distributions to LPs across both networks.

Thoughtful upfront alignment on these points helps avoid confusion later and supports a long-term co-syndication partnership.

How Sydecar Supports Co-Syndication

Co-syndication depends on clear structure and reliable operations.

Sydecar makes it simple and efficient for syndicate managers to form SPVs by automating banking, compliance, contracts, and reporting. For co-syndicated deals, Sydecar’s platform allows managers to:

• Launch a single SPV that can be shared across multiple syndicate leads.

• Onboard investors from different networks through a unified, streamlined workflow.

• Standardize deal documentation, economics, and reporting in one place.

• Use the Syndicate platform to host deal pages, share rich-text updates, and keep communications organized for all participating LPs.

With the operational layer handled, co-syndicate partners can focus on sourcing strong companies, supporting founders, and building durable investor relationships.

Next Steps

If you are considering co-syndicating your next SPV:

• Define your ideal co-syndication profile (sector overlap, stage focus, check size, LP base).

• Identify one or two managers you would like to partner with and start with a single, clearly structured deal.

• Use a consistent operational platform so all parties—managers, LPs, and founders—experience a single, streamlined process.

To learn more about running co-syndicated SPVs on Sydecar, check our Syndicate page.