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For emerging and established managers alike a “first close” comes with a profusion of sentiments. A first close is a multiheaded chameleon that harbors many characteristics and uses – it can be an existential marker, a customary show of fundraising progression, a necessary action to allow for deal execution, a timekeeper and barometer of the […]

After the warm or cold initial LP solicitations, introductory meetings (virtual or in-person at the allocator’s premises), and ongoing communications, but before the full consummation of a commitment, the prospective LP visits the GP’s office. This is an opportunity to view the sponsor in its natural habitat, where hopefully, home-field advantage numbs the GP’s inhibitions

When approaching prospective LPs, GPs should ponder the multi-dimensional puzzle these investors are trying to solve. In addition to a strategy’s viability and potential to generate outsized returns, many other factors need consideration when constructing a portfolio. During my career, I have come across analytical wizards, snake oil salespeople, not-yet-full-believers of private investing, and know-it-all

There is nothing enjoyable about rejection, no matter how it comes. In the case of fund GPs/sponsors, rejection is especially painful when they have displayed transparency, authenticity, and the potential for strong future returns. A mere rejection, however, does not tell the whole story. Progress likely stalled for a variety of reasons, many of which

As I have incessantly ranted about in past writings, an investment analyst’s inbox has the characteristics of a dark and eerie swamp. Wading through the chest-high sludge of unread messages, reference requests, quarterly GP correspondences, annual meeting invites, current manager meeting/coffee requests, etc., can be more deflating than a backhanded compliment about the majesty of

The “GP and prospective LP” dynamic is a complex one. The moving pieces are dizzying at best and indecipherable at worst. The asymmetricity at play resembles a game with everchanging rules – an appropriate reaction to this is “nonplussed” – so confusing that parties are unsure how to portray their bewilderment. From an allocator’s perspective,

I vividly recall sitting in multiple finalist presentations where the prospective clients’ gotcha question was “Can you please tell us how you source investment ideas?”. I could always tell this was a loaded question because everyone has an opinion on the best ways to source investment managers. Also, everyone tends to have an opinion of

The frenetic pace of information synthesizing and the sheer number of arbitrary tasks that make up a research analyst’s work life sometimes cause things to slip through the cracks. I have placed considerable emphasis in past articles on the importance of GPs being well-prepared for intro meetings to increase the likelihood of further LP engagement,

From an allocator’s perspective, regardless of how inclusive (for legitimate or CYA reasons) due diligence appears on the surface, it remains a very lonely endeavor. A research analyst’s solitude is further intensified when assessing a private assets investment opportunity. In the private investment research profession, it would seem that the initial investment period that lasts

I have always pondered the difficulties placement agents must face while pursuing excellence in their jobs. There are, however, so many placement agents in existence, enough evidence of capital raised via placement agents, and tangible evidence of financial reward as a result, that it jolts me selfishly back to thinking about the difficulty of my