One very common reason LPs “say” they chose not to re-invest (re-up) in a fund or to completely reject establishing a new relationship with a GP is “style drift,” a catch-all phrase that describes managers’ deviation from their pre-stated strategy. “Style drift” has been used so frequently in manager-critique situations that its original significance is […]
GP Style Drift – I Can’t Tell Who You Are Anymore Read More »
Recently, I’ve been reflecting on how someone can age gracefully in a career. With AI incessantly and intimidatingly banging at everyone’s intellectual door, it is impossible not to think about one’s own vulnerabilities. It is natural to ponder what weaknesses can be found in the intentional and happenstance fortress of skills we have individually developed
Have You Seen This Before? – The Paradox Of Familiarity Read More »
Last week, a shotgun due diligence I conducted on a fund approximately 13 years ago randomly came to mind. The manager was raising its third fund and had already hit its stated target. However, the fund had no hard cap, and five weeks remained until its scheduled final closing. Recognizing the tight timeline, which we
How Can A GP Salvage An LP Relationship? Read More »
There is undeniable exhilaration when an LP/GP relationship is consummated with an initial commitment. The future holds so much promise. The union feels like a whiteboard with boundless possibilities. Everyone is on their best behavior. Everything is fresh and innocent and devoid of negativity. This honeymoon period can last weeks, months, or even years (in
As LPs, How Punitive Should We Be To GPs? Read More »
The ability to discern risk when evaluating opportunities is high on the list of requirements for being an effective investment analyst. If untamed, risks have the potential to only be limited by one’s imagination. It is important that an analyst is educated on what risks to rigorously focus on when reviewing individual investments. Past curve
How LPs and GPs Can Navigate Regulatory Risk Read More »
The pool of private investment options grows more crowded by the day. Most LPs are inundated with pitches from eager GPs/sponsors yearning to forge new relationships and messages from current GPs/sponsors seeking to nurture existing relations to avoid future abandonment. It is my view that the continuing explosion of private investment options has led to
Despite the fact that the investment industry tends to be characterized by endless self-promotional fluff, there are periodic moments of profound insight that positively enrich our collective knowledge. It is always so fulfilling when enlightenment accosts you without any prior warning. Sometimes these moments of illumination appear in the most cliché statements – phrases you
The Meaning of LP Commitments Read More »
A couple of decades ago, when I was just starting out as an analyst, I remember getting word from a GP that one of the key people at the fund was leaving. The departure did not trigger a wholesale key person event, but I vividly recall being jolted into the realization of my extreme naivete
While mulling over multiple ideas for my next piece, I received inspiration from an unexpected source. I was delighted to have stumbled upon a topic that falls in the gray area of GP/LP dynamics that is seldom discussed. The light bulb moment happened during a reference call with a trusted GP-led secondary manager who had
Assessment of a GP’s Values Read More »
More often than not, the term “lessons learned” is used to imply some degree of intellectual honesty. In the world of finance, this phrase is a valuable shape-shifter. It can be used to show introspection when an investment manager embarks on a subsequent fundraise. It can also be used as a probing question to measure
Lessons Learned – Mere Hyperbole or Useful Assessment Exercise? Read More »
