Some U.S. private equity firms are courting their biggest and savviest investors with privileged access to special fee-saving deals without telling other investors, according to people involved in buyout firms’ fundraising.

The U.S. Securities and Exchange Commission (SEC) has signaled its interest in overseeing such deals after fining several private equity firms in recent months for improper disclosure of fees.

The so-called co-investments allow institutional investors such as pension funds and sovereign wealth funds to invest in target companies, both through the fund and directly without incurring some of the usual management and performance fees, which can translate into millions of dollars of savings.

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