Getting to Yes: Advice for PE Fund Managers

On the surface, conditions look favorable for private equity fund managers. The asset class is benefiting from record distributions increasing investors’ interest and consequently allocations, resulting in an upward trend for fundraising figures. But dig deeper and the picture isn’t quite as promising. In recent years, LPs may have been eager to increase allocations, but have been selective over who and where they are committing to, which has created a bifurcated market. Top tier-firms have raised quickly and been oversubscribed, and while this demand has trickled over to benefit PE managers outside of the brand names, many are still struggling and time to reach a final-close is around 17 months.

Well-performing managers aren’t exactly having an easy time during the due diligence process, either. LPs are approaching even re-investment decisions with a heightened level of scrutiny. They are reviewing their portfolios to eliminate their lowest performers and put more money to work with fewer managers, leading to more funds chasing fewer commitments. These challenging market conditions are why it has never been more important to re-evaluate your investor relations strategies and pitches to ensure you are communicating your value clearly and effectively.

This whitepaper, created in collaboration with Benjamin Ball Associates, discusses recommendations on how to improve your approach to the LP meeting, increase your chances of fundraising success – and get to that precious “yes.”