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Manager (General Partner/Sponsor) Due Diligence Challenges Some of my recent writings have discussed what can destroy or disrupt relationship-building momentum between general partners (GPs) and limited partners (LPs), as well as what typically populates the “Concerns” section of LP due diligence reports. These topics garnered a lot of feedback because of their voyeuristic qualities. A […]

I am willing to bet my life savings (consequential to me but inconsequential to some, depending on how much you are winning at life – hahaha) that all staunch private investing proponents have found themselves in a room (probably several times) having to defend the attributes of private equity. Private investing loyalists cannot avoid this

Although some in the investment world feel it is their birthright to manage money or assess those who manage it, many others embrace these functions as immense privileges. Applying a curious mind to determine what variation of people, processes, and data can trigger business or investment success should conjure deep gratitude. However, the usual suspects

The bone-chilling coldness of being professionally iced is agitating, irritating, and baffling at the same time. Many societal segments call this phenomenon “ghosting”, which means suddenly disappearing from one party after they believed a connection, relationship, rapport, or traction had been established. As I mentioned in a prior piece called “LPs Can Do Better”, “ghosting”

I have written previously about the tension that naturally exists between LPs and GPs. Clear business expectations, psychosomatic land mines, unspoken etiquettes, and a glossary of punishments for nonadherence to implicit and explicit rules complicate this symbiotic relationship. It is logical that providing capital to another party for an extended period will undoubtedly be accompanied

Every private assets due diligence report has “thoroughness” or the “impression of thoroughness” as an explicit or implicit goal. Why would you lock up capital for such a long time without adequate probing, prodding, analyzing, assessing, devil’s advocating, and soul searching? A well-written report embodies gruesome hand-to-hand (with medieval weapons) mental combat camouflaged by formal

In addition to the determination of capital loss and excess volatility risks, the assessment of “reputational risk” is vital when evaluating investment opportunities. However, reputational risk is among the most difficult to quantify since no standard measurement system is available. In the quest to determine a manager’s reputational risk, past performance, verbal/written transparency, reference calls,

I can vividly recall arriving 30 years ago in suburban Millersville Pennsylvania as a young African kid, ignorant as ever, ready to begin my undergraduate studies. Many things were foreign to me. I was clueless as to what other kids were into, and the racial lopsidedness (which had not factored into any of my selection

The prevalence of “groupthink” among prospective LPs is one of the most frequent complaints I hear from fund managers actively seeking capital. It is generally understood that “groupthink” in investing refers to a group of investors clustering around one viewpoint or theme without any of its constituents offering critical discourse or taking opposing positions. I

A few weeks ago I wrote about the critical role placement agents play in conducting the intricate orchestra of GP messaging, LP requests, and fundraising herding. Although many placement agencies are gradually evolving into a holistic business model that assists GPs in establishing long-term and ongoing relationships with prospective LPs, their primary use can still