It is remarkable to ponder that, at the most basic level, the right combination of words and numbers can trigger desired actions. The situation is no different when GPs are trying to convince LPs to loosen their purse strings. Of course, these words and numbers must be underpinned by authenticity, truthfulness, confirmability, and coherent delivery; yet, it is still amazing to think that words, numbers, and rapport can result in substantial amounts of money changing hands.
Typically, when an LP agrees to an initial meeting with a GP, some combination of words and numbers, provided beforehand, on paper, or through a tactful investor relations professional or placement agent, has resonated with the LP. Now comes the tricky part, the actual meeting. The GP must enter the meeting prepared to make a compelling case for the investment opportunity, while reading the room, being authentic, demonstrating transparency, and also inspiring memorability. This is easier said than done, because you cannot fully plan for what you do not know will happen. However, self-knowledge, self-awareness, and unshakeable integrity will always ensure that the message remains clear regardless of the audience. Some questions should be expected in any introductory meeting. These questions are often considered “Investor 101” questions, but don’t let their simplicity deceive you. They are essential tools for LPs to uncover the true essence of a GP because they explore the core of a GP’s foundation. There is nothing “gotcha” about these questions, and they roll off the tongue of most analysts with unconscious ease. Similarly, GPs are so used to these questions that they are usually answered with rehearsed fluidity. However, once in a while, maybe because of how the question is asked, or because the GP is keenly present in the moment, a memorable answer that remains indelible in an LP’s mind is delivered. Below, I am listing three common questions (in various forms) that all LPs ask, along with one memorable answer to each that caught me off guard in a mostly positive way.
- Why are you doing this? What are your ultimate goals? What is the reason for the existence of your organization? What drives you?: These questions are essentially asking the same thing. They want to understand the validity of a manager’s existence and also gauge their longevity. They are not trick questions at all, but many managers find it challenging to give a clear and concise answer that is both original and relatable.
Memorable answer: When asked an iteration of the reason for existence question, one manager, who does not have the quintessential investment banking/finance background, provided an answer that jolted me because of its unadulterated authenticity and brutal honesty. He said he grew up struggling to find purpose in life. However, he always knew he was good with numbers, planning, and building things. He made a concerted effort to seek a profession where these three strengths could help create generational wealth and help break the cycle of his family’s historical poverty. His research led him to investment asset management, specifically private equity investment asset management. He stated he had noticed that successful private equity asset management was one of the most effective and efficient ways to build generational wealth, so he dedicated every ounce of effort to this endeavor.
Why was this answer memorable?: GPs are typically sheepish when it comes to wealth creation. They usually try to provide an answer that is overly and strangely altruistic or say something like “I want to do a good job for investors, and getting rich in the process is an acceptable byproduct or the cream on top.” I don’t think there is a right or wrong answer to this question, but an answer that provides a deeper insight into the psyche and driving force of a GP is hugely beneficial to LPs.
- How are decisions made at your organization? Are investment decisions made democratically, autocratically, collaboratively, socratically, by consensus, etc.? How would you describe groupthink and intellectual honesty within your organization?: These questions aim to understand the manager’s underlying beliefs and philosophies about decision-making.
Memorable answer: To a version of the organization decision-making question, a GP answered with the bluntest self-assured response I have ever heard. He said, “We are probably the most biased manager you will ever meet; we have strong opinions about what we consider quality targets, and we are unwavering in those criteria”. This manager was not trying to be all things to all people. Their goal was to attract those LPs who are okay with a manager who is unapologetic about their dogmatism. The manager went on to describe in detail what they look for in deals, without providing the slightest hint of flexibility. The manager honestly warned that their rigid approach could lead to long periods of inactivity. This was somewhat refreshing because it offered an “eyes wide open” choice for prospective LPs to consider.
Why was this answer memorable?: The answer was memorable because the GP was genuinely being true to itself and attempting to use this authenticity to build a tribe of like-minded LPs who are fully aware of what they are getting into if they choose to do more work and eventually invest.
- What are your target returns? Do you believe your target returns justify the risks you are taking?: These questions are pretty straightforward and aim to determine how a GP evaluates its potential to produce competitive returns given the risks it takes.
Memorable answer: A GP responded to the above performance-related query with an answer that was both revealing about their psyche and unexpected from a candor perspective. The GP stated that their goal is to remain comfortably in the second quartile relative to peers at any given point in time. They further mentioned that there is a likelihood that they could generate top-quartile returns, but they want their investors to be assured that their funds will consistently strive to exceed the median.
Why was this answer memorable?: The answer was memorable because most GPs overpromise top-quartile returns, and if their returns fall to the second quartile, it is spun as quite a decent consolation prize. This GP took the opposite route of under-promising (or some would say, being realistic) and striving to surprise on the upside.
As I was writing this piece, it occurred to me that I might unintentionally be giving GPs the impression that their responses to basic questions need to be unusual, provocative, or contrary to the norm to stand out. In reality, an answer carrying shock value will indeed be memorable, but it will be remembered solely for the shock and nothing else. I tried to touch on memorable answers that went beyond sensationalism and touched on something authentic about the manager. These answers cannot easily be blatantly copied or slightly modified to suit the needs of any random GP. However, their authenticity and sense of self-expression can serve as an inspirational guide for other GPs to discover their own unique voice.
Anthony Kwesi Hagan
Founder and Head of Research, FreedomizationTM
July 20th, 2025
