Category: Fundraising Strategy

Effective fundraising in today’s private markets rests on a strong foundation built on four pillars explored in Parts 1 to 3 of Rethinking the Raise:

• Story: A differentiated narrative LPs can champion internally
• Data: Information that’s easy to access, trust, and compare
• Communication: Sustained momentum through clear, disciplined cadence
• Relationship Intelligence: Partnership-readiness demonstrated through responsiveness and shared insight

The fifth pillar is technology purpose-built for private capital—the infrastructure that makes the other four pillars scalable and sustainable. Operational excellence serves as the connective tissue, ensuring this technology translates into disciplined execution and lasting competitive advantage.

This final installment in Altvia’s Rethinking the Raise series explores how that combination creates measurable impact: delivering seamless execution and lasting LP confidence by bringing every aspect of fundraising together and setting the stage for a partnership experience that endures well beyond the close.

The Compound Effect of Operational Gaps

GPs who struggle with operational execution during fundraising are at a disadvantage. LPs can project that these managers are likely to face similar challenges in portfolio management, investor relations, and compliance reporting. 

Operational breakdowns are no longer minor nuisances; they carry real fundraising costs. Every slip or slowdown in deal sourcing, diligence, or communication becomes a tell–revealing broader maturity issues that affect the entire LP relationship lifecycle and creating an opening for better-prepared competitors to capture LP mindshare. 

Technology That Matches the Raise

The systems and workflows LPs interact with during the raise serve as the primary window into operational risk management, transforming technology from a back-office function into a partnership predictor. 

Managers who deploy technology built to handle fundraising complexity—from multi-fund relationships to regulatory reporting—gain a distinct advantage. By unifying data and workflows across core systems, these platforms deliver the consistency and transparency LPs now view as baseline.

This is what it means for technology to truly match the raise—purpose-built systems that eliminate operational friction and enable institutional-grade execution, fundamentally shaping LP perception of a firm’s readiness to manage capital at scale. 

Technology as the Fundraising Value Chain

A purpose-built platform is more than an IT upgrade. It is essential infrastructure in today’s saturated fundraising market, where LPs demand unprecedented visibility into portfolio and fund performance. Without purpose-built technology, firms default to Excel spreadsheets and manual workarounds that create poor LP experiences, often spelling the difference between a re-up and rejection.

For institutional managers, purpose-built technology drives competitive advantage across three dimensions: operational foundation, institutional signaling, and service quality with investor trust.

Foundation: Integrated Systems That Scale with Growth

Many firms still bridge CRM and VDR gaps with manual exports, reformatting, and uploads. These workarounds cause version conflicts and slow responses—especially visible during diligence, when operational maturity is under the microscope. Many vendors claim to solve this but still require Excel exports between systems—creating surface-level integration.

The Solution: Native Integrated Platform

Addressing these infrastructure gaps requires a fundamentally different approach—one where systems operate as a unified platform rather than connected point solutions:

• Unified data model: Contacts, commitments, and documents live in one workspace, eliminating manual reconciliation that fragments fundraising operations
• Seamless data synchronization: Updates cascade instantly across all systems with audit trails and permissions intact, ending version conflicts during critical LP interactions
• Centralized document control:  A single version-controlled repository guarantees LPs see the correct materials, no matter who shares them
• Automated workflows: Live ledger data auto-generates capital calls, distributions, and investor updates, dramatically reducing prep time

Signal: Institutional-Grade Execution Without the Fire Drill

LPs weigh operational discipline as heavily as performance. When investor queries trigger Excel hunts and last-minute edits, firms broadcast immaturity. Slow Due Diligence Questionnaire
(DDQ) responses, inconsistent data, and mis-sends quickly erode trust. In a market where LPs evaluate dozens of similar managers, operational discipline becomes the primary differentiator between institutional-ready firms and those still dependent on manual processes.

The Solution: Institutional-Grade Operations

Polished execution emerges from purpose-built workflows that transform reactive scrambling into proactive management:

• Built-in DDQ workflows: Standardized templates and collaboration tools deliver faster, more accurate responses
• Unified IR and operations dashboards: Live views of pipeline, compliance, and fund metrics eliminate status-check chaos
• Role-based permission controls: Automated access rules and logged approvals safeguard sensitive data while preventing embarrassing mis-sends

Consistent, on-demand answers show the operational polish LPs expect from institutional-ready managers.

Outcome: LP Experience That Builds Trust and Drives Re-Ups

In a crowded fundraising landscape, LPs increasingly prioritize managers who deliver streamlined and proactive reporting experiences.  LPs can afford to be highly selective about service quality and operational sophistication. This selectivity means that dated approaches—PDF email blasts and custom Excel reports—create competitive disadvantages that undermine LP confidence in ongoing service quality

The Solution: Relationship-Driven Technology

Creating the exceptional experiences that drive re-ups requires technology that makes proactive service repeatable:

• Custom LP portals and dashboards: Investors pull tailored reports, benchmarks, and updates whenever needed, freeing IR teams from one-off requests
• Proactive alerts and automation: The system flags missing signatures, looming deadlines, and data mismatches before investors notice
• Mobile-ready LP histories: Complete preferences and engagement notes travel with deal teams, enabling personalized conversations on the road

A seamless, data-rich experience cements trust, drives re-ups, and sparks referrals—turning operational excellence into lasting capital relationships in a competitive environment where LPs have abundant options.

Post-Close Excellence: The Compounding Advantage

Closing the fund isn’t the finish line—it’s the starting point of the LP relationship. What sets leading managers apart is how they carry forward the same operational polish LPs saw during the raise into everyday execution. When a firm’s core platform powers both fundraising and ongoing operations, the five pillars evolve from tactical strengths into institutional advantages:

• Story remains coherent through automated performance tracking tied to actual outcomes
• Data stays consistent—no reformatting, no versioning issues, no manual cleanup
• Communication keeps its rhythm—system-driven workflows ensure steady, timely updates
• Relationship Intelligence builds—touchpoints and preferences flow into each new interaction
• Technology scales with the fund—no need to rebuild infrastructure between vintages

This continuity creates not just operational stability, but the foundation for long-term trust.

Operational Consistency in Action

Instead of reverting to manual systems post-close, best-in-class firms maintain the structure that won the mandate. The results are tangible:

• Automated reporting delivers LP- and board-ready updates in hours, not days
• Real-time LP portals reduce one-off requests by keeping investors in the loop
• End-to-end audit trails support compliance without extra effort or duplicated work
• Live, unified dashboards ensure all teams speak from the same data set

Fundraising-level execution becomes the day-to-day norm—not a one-time show.

The Long-Term Payoff

Today’s LPs evaluate post-close service with the same scrutiny as pre-close diligence. The firms that maintain discipline beyond the raise gain durable advantages:

• Faster, lower-friction re-ups
• Stronger referrals to peer institutions
• Greater credibility with new investors

Operational consistency compounds over time, turning seamless execution into relationship capital that fuels the next fund and every one after. Together, the five pillars—Story, Data, Communication, Relationship Intelligence, and Technology—form a scalable system of trust and execution. This operational foundation is what defines institutional-grade managers in a competitive fundraising environment.

Strong communication gets LPs engaged. What keeps them moving forward are the relationship signals that predict post-close partnership quality—how feedback is processed, context preserved, and coordination maintained across teams.

That scrutiny is only intensifying. Distributions to paid-in capital now carry a priority weighting 2.5 times higher than in 2022 (McKinsey, 2025). LPs are managing more capital with fewer people while GPs stretch lean teams across global pipelines. In this environment, how a GP shows up under pressure signals what partnership will actually feel like.

This installment in the Rethinking the Raise series explores the fourth pillar of effective fundraising: relationship intelligence, the discipline of turning every interaction into shared context and coordinated execution.

Relationship Craft: Beyond the Investor List

Maintaining momentum means prioritizing behavioral signals over static criteria. Instead of relying solely on firm size or geography, leading GPs segment by allocation timing, co-investment appetite, email engagement, portal activity, response specificity, and meeting progression. Purpose-built systems track which LPs schedule follow-ups quickly, respond with detailed questions, and advance through internal stages.

Fundraising timelines are stretching, yet a subset of managers still closed in under six months with “one-and-done” processes (Preqin, 2025). Early behavioral tracking consistently shows up among faster closers.

This intelligence sharpens first meetings. Referencing a prospect’s portal activity or document downloads shifts the conversation from generic pitch to partnership dialogue.

The key is infrastructure: integrated systems that automatically capture interaction data across team members, preserving context that would otherwise sit in inboxes or disappear during transitions.

Processing Feedback as Relationship Intelligence

When an LP flags an issue, such as ambiguity in a key-person clause, the response reveals more than attentiveness. It reflects how the firm coordinates under pressure.

LPs want partners who act decisively, communicate clearly, and stay aligned across functions. A concise, well-informed reply signals that readiness:

“Appreciate the flag. After review with counsel and partners, we’ve tightened the clause to cover any two of the three named individuals. Revised language is uploaded to your data room.”

The fix matters—but how it’s delivered matters more. Feedback becomes a test of execution.

Missteps like inconsistent messaging, delayed follow-up, or unclear ownership expose internal gaps. LPs begin to question whether coordination will hold once capital is committed.

It’s not just about responsiveness. The firms that build momentum recognize patterns across conversations and act on them. When several LPs raise the same concern, it’s not just a comment—it’s guidance:

“Based on market feedback, we’ve refined our key-person clause to clarify succession planning.”

Failing to act forces LPs to carry unresolved issues into committee meetings, slowing progress and undermining trust.

Feedback isn’t a task to clear. It’s an opportunity to demonstrate alignment, adaptability, and follow-through.

SIDEBAR: 24-Hour Response Best Practices

• Acknowledge receipt: within 2 hours
• Initial response: within 24 hours
• Full resolution: within 48 hours

Pro tip: Set up automated status updates to preserve momentum during internal coordination.

Institutional Memory As Competitive Advantage

Institutional memory is built through repeatable workflows: logging action items, tracking insights, and ensuring team-wide access to relationship context. The goal is clarity—everyone knows where information lives, who owns it, and how it resurfaces during critical LP interactions.

Capturing What Matters Across the Team

True institutional memory isn’t built on software; it’s driven by a firm-wide culture that demands rigorous data hygiene. This means key touchpoints—call notes, open items, and engagement signals—are logged consistently across IR, deal teams, and finance, without exception.

When this discipline holds, teams act with precision. Junior staff can recall an LP’s ESG stance from a prior call. Partners enter meetings already aligned on timelines. Most importantly, LPs experience seamless continuity, not frustrating repetition.

Turning Context into Operational Leverage

When CRMs and workflow tools are kept current and used actively—not treated as passive storage—relationship knowledge becomes a performance driver. Logged details sharpen follow-ups, strengthen positioning, and accelerate coordination. Teams avoid redundant research, stop repeating questions, and hand off relationships smoothly. The result is systematic discipline LPs notice.

Maintaining Continuity Through Change

As teams evolve, institutional memory safeguards consistency. Turnover, regional expansion, and limited IR capacity can all create gaps. But when context lives in structured systems—not inboxes or notebooks—coverage stays intact. A new IR manager can step in, access full history, and continue conversations without disruption.

Spotting When Memory Breaks Down

When institutional knowledge breaks down, symptoms show quickly. LPs start using side channels. Responses slow. Conversations lose depth. These are early signs of eroding trust. Preserving memory isn’t just an efficiency play—it shortens cycles, protects hard-won relationships, and signals the operating quality LPs value.

Value Creation Between Meetings

Every GP-LP interaction, not just meetings, can reinforce trust or erode it. Relevance is what cuts through.

Delivering Targeted, Useful Outreach

While most CRMs can track basic email opens and clicks, purpose-built fundraising platforms capture the context that matters most to LP relationships. When your CRM connects directly to your data room, teams can see not just that an LP opened a document, but which specific sections they reviewed, how long they spent on financial statements versus marketing materials, and how their engagement patterns compare to other committed LPs.

This contextual intelligence allows teams to prioritize what to share and when—aligning communication with actual interest rather than defaulting to generic updates.

That’s how communication becomes value.

Examples of Targeted Outreach:

• Market insight: “Saw you reviewed the sector update. Page 3 includes benchmarks for your IC meeting.”
• Process support: “Here’s the allocation timeline template for your Q3 review.”
• Deal alert: “Co-investment opportunity in your target sector is coming up.” 

Targeted outreach positions the fund as a thoughtful, informed partner. It shortens the path to decision and reduces friction in the LP’s own internal process.

Reinforcing Trust Through Consistent Follow-Up

When messages build on each other, LPs see a team that listens, tracks, and responds with precision. Follow-ups avoid backtracking and show continuity without overcommunication.

When context is respected and timing is right, consistency becomes a signal of operational quality.

Partnership Readiness In Practice

Amid stretched timelines and lean teams, performance metrics alone no longer differentiate. LPs now judge how firms coordinate feedback, preserve context, and deliver value across workflows.

Firms show maturity through dependable systems without relying on individual heroics. That kind of discipline predicts post-close satisfaction more reliably than returns alone.

Relationship intelligence is now a core pillar of successful fundraising. The firms that turn interactions into memory—and deliver value without prompting—are the ones LPs trust to manage capital with rigor.

In our 4th and final post in this series, we’ll explore how infrastructure and workflow discipline—from meeting coordination to reporting—reveal the quality of post-close execution.

Fundraising is no longer just about past performance—it’s about perception. As capital becomes more cautious and competition intensifies, LPs are evaluating more than your numbers. They’re evaluating how you manage the process itself.

This pressure has only intensified. Global fundraising volumes dropped 35% and fund closings fell 34% in Q1 2025 alone (Paul Weiss, Q1 2025). Because of this, every update, call, and data-room ping becomes a make-or-break moment. A reactive or disorganized approach can quietly send your name to the bottom of an already short shortlist.

That’s why communication has become the differentiator, and the focus of this second installment in our Rethinking the Raise series, which outlines five partner-level pillars that position GPs to win commitments and build enduring LP partnerships.

In this piece, we examine the third pillar—strategic communication—and break down the core components that turn interest into signed commitments: a predictable cadence, centralized yet personalized outreach, candid updates, and a tight response loop.

The goal: give your team a structured approach that keeps momentum high as diligence grinds on, LP questions multiply, and market noise grows louder. Nail the communication, and you’ll do more than fill a fund—you’ll lay the groundwork for decade-long partnerships.

Set The Cadence Early

In a market where roughly $3 of LP demand competes for every $1 of available fund capacity (Bain, 2025), a predictable communication rhythm sets GPs apart. Allocation committees plan their commitments months in advance. If your communication timeline drifts without explanation, that capital moves to the next manager in line.

What Undermines Confidence

“We’ll have updates in Q3 and will circle back with more details as they develop.”

This signals a reactive process. The date is unclear, the plan is vague, and the burden shifts to the LP to chase updates.

What Builds Confidence

Many top-performing GPs share a live calendar with LPs, signaling discipline and building confidence from day one. For example:

• July 15: Content freeze (all deck and DDQ updates locked)
• Aug 01: Soft-circle check-in #1 (email + 30-min webcast)
• Aug 14: Data-room refresh (Q2 financials uploaded)
• Sep 15: Target first close

Whenever a milestone shifts, send an updated calendar within 24 hours and include a one-line reason such as “Audit fieldwork delayed one week; new data-room refresh Aug 21.”

This simple habit delivers three immediate benefits:

1. Keeps LPs’ internal clock in sync. Allocation meetings are fixed on their end; a surprise date slip forces them to reshuffle agendas or park your fund.
2. Shows you run a tight ship. Version-controlled calendars signal the same operational discipline LPs expect once the fund is active.
3. Cuts back-channel churn. Clear, proactive updates reduce follow-up emails and calls, freeing your team to focus on diligence, not inbox triage.

Reviewing the calendar at each weekly fundraising stand-up ensures this process stays honest and effective, preventing last-minute scrambles and building the steady confidence that separates funded managers from the herd.

Centralize Access And Personalize Touches

Administrative friction such as broken links, outdated files, and scattered threads kills momentum just as surely as a collapsed deal. LPs see disorganization as operational risk, and it can quietly add weeks to your diligence timeline.

What Stalls Momentum

“Attached is the latest deck. Let me know if you need the updated PPM.”

Now the LP is sorting through 20 email threads trying to confirm what is current. Thinking, “If document management is this chaotic during fundraising, what will quarterly reporting look like?”

What Builds Velocity

Host all materials in a version-controlled VDR or portal. Tag each file by date and category, then follow key uploads with a brief note tailored to the LP’s mandate:

“Hi Sarah, Q1 portfolio financials are live under 4.2. Both healthcare deals we discussed are tracking 12% ahead of plan.”

This approach sends three clear signals:

• Operational rigor. A clean, versioned data room proves you handle complex processes with discipline, the same discipline you will apply to portfolio companies.
• Respect for time. Personalized alerts deliver relevant information without forcing LPs to hunt for it.
• Partnership mindset. Outreach triggered by portal activity feels like attentive relationship-building rather than transactional follow-up.

Providing organized access and thoughtful follow-up shows you are an institutional-grade partner before the first dollar is committed.

Lead With Candor

Seasoned LPs can spot over-engineered narratives instantly. They value directness over polish and expect timely updates when something material changes. When a pipeline deal falls through or a forecast shifts, delay is what erodes trust.

A simple variance framework keeps communication clear: explain what changed, why it happened, the financial impact, and how you are responding. Consistency is just as critical. Prepare talking points so that every partner delivers the same message. In sensitive situations, unified communication protects your credibility.

What Undermines Credibility

A buried line in the quarterly letter mentions a key pipeline deal fell through due to valuation disagreements.

What Builds Trust

A same-day email to LPs:

Subject: Update on Project Phoenix

Team, wanted to share an immediate update. We are stepping away from Project Phoenix after diligence revealed [issue]. Based on that and revised valuation inputs, we could not reach terms. We are reallocating resources to two active opportunities that better align with our return targets. Happy to discuss further on next week’s call.

Proactive, clear updates signal maturity and build confidence, even when the news isn’t perfect. LPs don’t expect every deal to close, but they do take note of how you communicate when things shift. Direct updates help reinforce confidence even when the outcome changes.

Build A Responsive Rhythm

Proactive communication consistently outperforms reactive responses. In a live raise, LPs interpret responsiveness as a core signal of competence—and they especially resent hearing bad news secondhand from intermediaries or the press.

Structure your outreach:

• Data Room/Portal updates for routine and proactive communication
• Concise emails for key developments and alignment
• Live calls for material issues

Clarify responsibilities upfront: who contacts which LPs, how quickly, and through what channel. After each alert, log the follow-up in your CRM and set reminders to ensure nothing is missed. A bi-weekly check-in cadence with priority LPs helps keep your fund front and center and allows you to address concerns before they turn into roadblocks.

This kind of discipline matters. Responsiveness isn’t just about speed—it’s about creating space for dialogue, trust, and alignment. That’s what long-term partnerships are built on.

Next, we explore the fourth partner-level pillar in the Rethinking the Raise series: the relationship signals LPs look for to evaluate what kind of partner you’ll be before a commitment is made.

Private capital is at an inflection point. Fundraising is taking longer. LPs are digging deeper. And the bar to stand out keeps rising.

In just two years, the median PE fundraising timeline has grown by 35%—stretching from 14 to 19 months (Preqin). Nearly 90% of LPs now report receiving GP extension requests, a clear sign that capital is tighter and diligence is deeper (Coller Capital).

The reasons are no mystery: slower exits, reduced distributions, and mounting macro uncertainty. 

For GPs, the impact is real. Every extra month on the road compresses IRR and gives rival firms a head start. Add in new regulations like the SEC’s Form PF update, and expectations shift—LPs, under pressure themselves, now demand sharper differentiation, real-time transparency, and operational rigor from the very first meeting.

While performance still matters, LPs increasingly reward clarity—about your thesis, your numbers, and how you run your firm.

In this two-part series, we break down the 5 partner-level pillars that separate the GPs who struggle from those who succeed. First up: how mastering your story and surfacing data can convert faster, build trust, and move capital sooner.

Sidebar: SEC Form PF Update: At a Glance

• Effective June 12, 2025 
• Requires more granular, fund-level data on structure, exposures, and liquidity
• Event-driven filings now mandated after adviser-led secondaries, fund terminations, and other key events 
• Expanded reporting on counterparties, portfolio company financing, and fund-of-funds
• Faster, more detailed reporting is now the expectation from both regulators and LPs

Source: SEC Release No. IA-6838, Amendments to Form PF Compliance Date Extension, January 29, 2025. sec.gov

Clarity Is Currency: A Story LPs Can Sell

LPs don’t have time for ambiguity. They want to know, in plain terms: Why now? Why you? What’s the upside? The most effective GPs don’t just present facts. They deliver a narrative that’s easy to retell and hard to forget.

Success pairs two skills:

• Disciplined content: a tight statement of gap, edge, and reward.
• Skilled delivery: an LP-focused narrative that answers objections before they arise.

Ground the narrative in hard metrics—earnings before interest, taxes, depreciation, and amortization (EBITDA) and other tangible KPIs—so it shifts from aspiration to investable reality.

What Makes a Fund Story Stick

A forgettable deck says, “We target fragmented markets with favorable demographics.” A memorable one is specific, concrete, and timely:

“We acquire U.S. rural outpatient clinics that generate about $3.8 billion of EBITDA a year and trade 25% below urban comps. Our operating bench has already doubled margins at 3 targets. We aim for a net IRR of 22% to 24% and a 2.0× DPI within 5 years.”

That is a story an LP can run with. It is clear, focused, and aligned with today’s investor expectations.

Lead with three essentials: a clear market gap, a distinct team advantage, and a realistic, well-supported upside for investors. This structure, central to strategy memos and the ILPA DDQ, helps GPs address LP priorities early and keep the fundraising process moving.

1. Describe the market tension, not just the trend

LPs see the same broad claims in every other deck. What lifts eyebrows is a quantified imbalance that still hasn’t closed. And a reason the window will not stay open forever.

Example: “Rural outpatient clinics generate roughly $3.8B EBITDA annually yet trade 25% below urban comps because consolidators avoid trip-wire state regulations.”

LP might think: If the discount is obvious, why hasn’t it vanished?

A five-year multiple chart with a timeline for spread compression is effective in signaling urgency and discipline.

2. Prove your edge in one breath

Alpha disappears when execution looks generic. Tie a specific result to a unique capability: “Three former operators lifted proprietary deal flow 40% and shaved diligence 15 days.”

Then walk through a recent deal sourced under that bench, including downside sensitivity if multiples compress 10%.

3. Anchor the payoff with ranges, not point targets

Ranges (e.g. “22–24% net IRR, 2.0–2.2× DPI”) signal scenario work. Translate to plain language: “double the money in five years.” Re-index prior funds to the same horizon and show quartile rank under stress to quell “too rich” return stretch pushback.

If an LP can echo your pitch in 2 sentences, you are ahead of the pack. A strong story forms the backbone for every conversation that follows, linking your numbers and your narrative.

Show What’s Changed and Quantify It

LPs don’t fund yesterday’s story. They want proof of progress. The best GPs go beyond static numbers—they show real momentum. Forward-looking metrics matter: margin lift, pipeline velocity, and cycle time reductions all demonstrate execution and adaptability.

After the thesis, dedicate one slide to “Since Last Fund” and include:

• EBITDA margins up X basis points
• Pipeline covers Y months of planned deployment
• Term-sheet-to-close time cut Z days

Each of these metrics speaks directly to LP concerns: speed of deployment, confidence in value creation, and risk mitigation. But just as important is how transparently GPs communicate what’s behind those numbers.

LPs value managers who publish financing strategies, respond swiftly, and disclose portfolio decisions, including NAV loans or capital pacing shifts; this transparency builds trust and sets the tone for partnership. 

Use visual timelines or before/after charts, such as pipeline velocity over time or EBITDA margins by vintage, to bring progress to life; even a lessons-learned slide signals strategic adaptation. A clear, visual track record makes it easy for LPs to see momentum and understand how your approach adapts to market realities.

Defend Your Right to Win

In today’s market, facts matter more than prose. GPs who stand out make their right to win obvious, not arguable. Build a 1-page bullet sheet that covers:

• Market timing
• Team edge
• Proprietary pipeline visibility
• Comparable exits (with multiples)

Cite primary sources beside each bullet. The discipline signals institutional rigor—exactly the assurance partners want LPs to feel. This is not about checking boxes. It’s about surfacing your edge, showing your work, and making the case for why your team is positioned to outperform.

LPs are comparing you to a dozen other managers. The more you can back up your claims with real, accessible data, the faster you move from “interesting” to “in diligence.”

Make Data Easy to Access and Easy to Trust

Once you’ve set your story and established your edge, LPs want substance behind the pitch. In Preqin’s 2025 survey, 73% of LPs cited inconsistent reporting as a top friction point. Every missing number or unclear update slows the close and erodes trust.

Lock in the Framework

Standardize your data room using the ILPA DDQ and common ESG/DEI templates. ILPA’s latest update calls for deeper fee and expense breakdowns—details LPs now expect to see upfront.

Put Data Under One Roof

A centralized portal aligned with SOC 2 and ISO 27001 standards eliminates version-control issues and puts critical information front and center for LPs.

Past Fund Performance

Realized and unrealized results, with context and clear attribution

Active Portfolio Updates

Company-level progress, milestones, and operational highlights.

Proactive Communication

Regular updates on key developments, not just quarterly reports

Transparency on economics is equally important. LPs expect upfront clarity on cost structures, including fees, expenses, and terms that impact net returns–86% of LPs say this is critical during diligence.

Stay One Step Ahead

Don’t wait for LPs to chase you. Push tailored updates—concise emails linking to refreshed dashboards, quarterly video walkthroughs, or one-pagers on portfolio highlights and lessons learned. Let LPs filter by sector, geography, or value-creation lever. Track capital calls, exits, and other key events in real time.

Make Momentum Visible

LPs want to see momentum, not just static numbers. Visual dashboards should highlight performance across funds, current portfolio progress, and key milestones. Include IRR, TVPI, and DPI benchmarks, but also show how value was created—margin expansion, operational improvements, pricing power, or strategic exits. Visual timelines and before/after charts help LPs quickly grasp your evolution and adaptability.

Close Diligence Gaps

Prepare direct answers to recurring topics—team changes, gross-to-net math, pipeline breakdowns, attribution logic, and valuation policy—so conversations stay focused on strategy, not cleanup.

When LPs can benchmark, compare, and understand your portfolio in minutes, not hours, you demonstrate operational discipline and make it easier for them to move forward with conviction. 

Visual storytelling is more than reporting. It builds trust, accelerates decisions, and gives LPs what they need to advocate for your fund internally.

From First Impression to Final Close

A story LPs can repeat is the first step. But it is the data—clear, current, and visual—that turns interest into conviction. When you combine a compelling narrative with transparent, well-structured information, you move from being “another deck in the pile” to a frontrunner.

Yet even the best story and cleanest data won’t close a fund on their own. The next differentiator is how you communicate, how you build trust, and how you deliver a seamless, frictionless experience from first call to final close.

In Part 2, we’ll go deeper on the operational and relationship side of the raise—how strategic communication, genuine partnership, and technology execution shape LP trust and set the stage for re-ups. In a market where every detail counts, the GPs who master the entire experience, not just the pitch, are the ones who keep capital coming back.

The 2024 PEI Investor Relations & Fundraising Forum, held in San Diego September 25-26, 2024, emphasized one clear message for private equity firms: the industry is recalibrating, and it’s time for firms to realign their strategies. 

While fundraising has typically followed a cyclical three-to-four-year pattern—leaving many anticipating renewed activity in 2025—the old playbook is no longer enough to stay ahead. There is optimism that 2025 will see a resurgence in private equity fundraising, but it’s clear that a recognition in how GP’s approach fundraising must evolve to meet new expectations.

Investors today are increasingly pragmatic, seeking investments that not only promise returns but also resonate personally with their financial goals and values. In turn, GPs must tailor their marketing and fundraising efforts to appeal to these diverse client profiles. Firms that leverage technology to support this multifaceted approach and adapt quickly will thrive, meeting evolving investor expectations for transparency, personalized communication, and dynamic engagement. Conversely, those without purpose-built private equity software to support this agile, multi-pronged strategy risk being left behind.

A Market in Flux: Reassessing and Realigning

In what some speakers called a “get your act together” phase, PE firms are re-evaluating their fundraising tactics and revitalizing strategies that may have grown stagnant during the recent market lull. Teams are leaner, with people wearing multiple hats, which has shifted the burden of investor communication to nearly everyone in the organization. As a result, the role of investor relations has expanded, with sales, data collection, and client engagement now requiring a single, more agile process.

This shift has made firms realize that the same old approach won’t work for much longer. Investors are seeking firms with an operational infrastructure capable of reporting on non-traditional metrics. So, in light of the market downturn, there is a heightened focus on actual distributions rather than projections, which encourages firms to be transparent about underperforming vintages from previous years and to candidly share lessons learned. Consequently, there is a growing emphasis on metrics like DPI (Distributions to Paid-In Capital) over IRR (Internal Rate of Return).

Diversifying Investor Bases: The New Communication Challenge

The Forum also highlighted a growing need for fund managers to diversify their investor bases. As private capital markets broaden, fund managers are engaging with an increasingly varied range of investors—from institutional investors to high-net-worth individuals and family offices. Each group brings its own set of expectations, particularly when it comes to communication and engagement.

High-net-worth individuals and younger generations of investors, in particular, are pushing for change. They expect digital platforms, instant access to personalized content, and quick insights, rather than traditional reports or meetings. Delivering on these diverse communication needs demands a more sophisticated strategy. Solutions like Altvia’s LP Portal and VDR, ShareSecure and our CRM, AIM, are essential for helping firms streamline workflows, enabling fund managers to deliver personalized and relevant content to each investor type without sacrificing efficiency. Moreover, ShareSecure’s landing page functionality is designed for rapid deployment, allowing firms to create targeted, appealing pitches for any use case—marrying speed with high-quality communication.

Storytelling: The New Language of Fund Performance

Fund performance has always been important, but what’s changing is how firms communicate that performance. Today, it’s not enough to present a series of numbers; investors want to understand the story behind those numbers. Why did a particular investment perform the way it did? What were the key decisions and events that shaped its outcome? 

This need for transparency is especially important for funds with underperforming vintages, as it offers an opportunity to build trust by sharing both successes and setbacks openly. Firms that are able to communicate both successes and setbacks through compelling storytelling will find that they foster deeper trust with their investors.

Products like Altvia’s Answers empower firms to craft narratives by isolating key data points and presenting them in an engaging way. Whether it’s explaining why a particular investment didn’t meet expectations or highlighting a strong exit, the ability to weave data into a cohesive story is now a crucial part of fundraising and investor relations. This narrative approach resonates more with investors, particularly as they seek to understand the ‘why’ behind the numbers.

The Road Ahead: Embracing Technological Evolution

As firms prepare for a potential private equity fundraising rebound in 2025, adaptability and agility will be the key to success. The needs of today’s investors have evolved, and the technology that firms use must evolve with them. The traditional fundraising playbook is being rewritten, and technology is at the forefront of this transformation. Instead of trying to fit new investor expectations into outdated systems, firms must embrace platforms that offer dynamic, customizable solutions.

Private capital fundraising isn’t what it used to be—and that’s a good thing. If your firm is ready to evolve, it’s time to explore how platforms like Altvia can help you meet the changing demands of your investor base. Here are 5 tips to make 2025 your strongest fundraising year yet: altvia.com/elevate-your-fundraising!

Imagine you’re hosting a dinner party—one of those first-time gatherings with new friends where every detail counts, from the perfectly paired wine to the carefully curated playlist. The goal? To impress, to connect, and ultimately, to build lasting relationships. Now, swap out that dinner party for a fundraising campaign in the alternative investment space. The principles are surprisingly similar: you want to create an unforgettable and differentiated experience for your guests (or in this case, your investors), connect on a personal level, and build a shared vision for an enduring partnership.

Private Equity fundraising is more than just presenting numbers; it’s about crafting an experience that resonates with investors, making them feel valued and excited about what you have to offer. In a world where competition is fierce and attention spans are short, how do you stand out? How do you make your campaign the one that everyone wants an invite to?

At Altvia, we’ve honed the art of fundraising into a science, blending data-driven insights with a touch of creativity to ensure your campaigns are not just successful, but memorable. We’re not here to tell you to just follow trends—we’re here to help you set them. So, whether you’re a seasoned pro or a rising star in the alternative investment space, these five tips will elevate your fundraising game, making your campaign the talk of the town (or at least the boardroom).

Ready to start your next fundraise? Let’s dive into the essentials that will make your campaign the one everyone’s talking about.

1. Harness the Power of Data Analytics

Leveraging analytics is no longer optional for alternative investment firms looking to be the best. Investors increasingly expect fund managers to provide detailed, data-backed insights.

By utilizing advanced analytics tools, you can:

• Understand Investor Preferences: Analyze past interactions and investment behaviors to tailor your pitches.
• Predict Trends: Use data to forecast market movements and adjust your strategies accordingly.
• Demonstrate Performance: Present clear, data-supported evidence of your fund’s performance and potential.

Embracing data analytics not only enhances decision-making but also builds credibility with prospective investors.

2. Embrace Digital Solutions for Communication

Traditional private equity fundraising methods are evolving. Digital platforms offer unprecedented opportunities to efficiently reach a broader audience. Consider the following:

• LP Portals & VDRs: Utilize flexible and brandable platforms that streamline the investment process, making it easier for investors to commit and stay updated, while also giving you visibility throughout the process.
• Social Media Engagement: Share insights, updates, and thought leadership to build your brand presence.
• Virtual Meetings and Webinars: Facilitate connections without geographical constraints.

By leveraging digital solutions into your communication strategy, you can engage with investors more effectively and efficiently.

3. Foster Transparency and Build Trust

Trust is the cornerstone of successful fundraising. Transparency fosters trust, and in the age of information, it’s easier—and expected—to maintain openness. To build trust:

• Detailed Reporting: Use technology to offer comprehensive, easy-to-understand reports that highlight key metrics and developments.
• Regular Updates: Keep investors informed with consistent, transparent updates about fund performance and strategies. 
• Open Communication Channels: Encourage questions and provide clear, thoughtful responses.

Demonstrating transparency not only reassures current investors but also attracts new ones who value candid and straightforward communication.

4. Utilize an Industry-Specific CRM 

Managing relationships is pivotal to fundraising success. It’s table stakes for a firm to use a CRM in today’s landscape, so why waste your time with a generic CRM that’s not tailor-made for your workflow? The benefits of purpose-built solutions for private capital markets include:

• Intelligently Concealed Complexities: Say goodbye to the clutter of endless custom fields that only add confusion. A private equity CRM comes preconfigured with the specific features and workflows you need, streamlining operations and allowing your team to focus on what matters—building relationships and closing deals.
• Curated Reporting: Generate investor-specific reports with ease, pulling in data from multiple sources to create tailored updates that speak directly to your investors’ interests and concerns. This level of customization enhances your communication strategy and demonstrates your commitment to transparency and precision.
• Seamless Integration: A purpose-built CRM effortlessly integrates with your existing tools and data sources, creating a unified platform that boosts productivity across your entire operation. This ensures that all teams—from deal origination to investor relations—are working from the same playbook, driving efficiency and collaboration.

By choosing a CRM specifically designed for the alternative investment industry, you’re not just managing relationships—you’re optimizing them for long-term success.

5. Craft a Compelling Story and Value Proposition

Beyond numbers and data, storytelling is a powerful tool in fundraising. A compelling narrative can differentiate your fund and resonate with investors on a personal level. To craft your story:

• Highlight Unique Value: Clearly articulate what sets your fund apart and the unique opportunities it offers.
• Share Your Vision: Convey the long-term impact and goals of your investment strategy.
• Incorporate Technology: Showcase how technology enhances your operations, from data analytics to investor relations.

A well-crafted story not only captures attention but also fosters an emotional connection with potential investors.

The Dynamic Nature of Fundraising 

Fundraising in the alternative investment space is constantly evolving, with technology playing a pivotal role in shaping successful strategies. By leveraging data analytics, embracing digital platforms, fostering transparency, utilizing a purpose-built CRM, and crafting compelling narratives, you can enhance your fundraising efforts and build lasting relationships with investors.

At Altvia, we’re committed to supporting you on this journey with solutions and insights that empower your success. Explore how we can navigate the future of fundraising together with our fundraising software: https://altvia.com/fundraising-and-marketing/.

Leveraged buyouts (LBOs) are a cornerstone of private equity, where financial engineering meets strategic acquisition. In an LBO transaction, PE firms acquire companies using a substantial amount of debt, aiming to amplify returns by leveraging the acquired company’s assets and cash flows. But, what does that even mean? How do LBOs work? And what are the implications for both the investors and companies involved?

What is a Leveraged Buyout (LBO)?

A leveraged buyout is a financial transaction in which a PE firm acquires a company primarily using borrowed funds, with the expectation that the target company’s cash flows will be sufficient to service the debt. The PE firm typically contributes a portion of equity capital, often alongside limited partner investors, while the remaining purchase price is funded through various debt instruments.

What does an LBO process look like for PE Firms?

Before making an acquisition, PE firms conduct their due diligence through a series of steps, including analyzing a potential company’s assets, cash flows, and cash expenditures. If the deal seems to have potential, the PE firm negotiates a price and outlines a deal structure. Next, they source capital to take ownership of the business, and then implement strategic changes and cost-cutting measures to accelerate growth (and revenue).

To determine if a deal is worth pursuing, firms use an LBO model for evaluation, which, as the Corporate Finance Institute explains, can get pretty complicated due to the unique factors that go into such a deal. These include, but are not limited to:

• A high degree of leverage
• Multiple tranches of debt financing
• Complex bank covenants
• Issuing of preferred shares
• Management equity compensation
• Operational improvements targeted in the business

Once evaluating these factors, firms need to measure key metrics to ensure the deal is favorable, such as:

• Debt/EBITDA
• Interest Coverage Ratio (EBIT/Interest)
• Debt Service Coverage Ratio (EBITDA – Capex) /  (Interest + Principle)
• Fixed Charge Coverage Ratio (EBITDA – Capex – Taxes) / (Interest + Principle)

When analyzing these metrics, firms should also conduct what’s called a sensitivity analysis. This analysis forecasts LBO outcomes based on different assumptions and scenarios, such as changing the EV/EBITDA acquisition multiple, the EV/EBITDA exit multiple, and the amount of leverage (ie: debt) used.

If using a templated LBO model, it’s essential to keep in mind that certain models use specific assumptions. In Firmex’s templated LBO model, for example, it assumes 100% acquisition of the target company, that the most recent year-end balance sheet is the closing balance sheet, that there are no step-ups in asset values, and that there will be no amortization of goodwill from an acquisition. If these assumptions don’t apply to your deal, factor that in during your analysis. 

How to structure an LBO:

At the heart of an LBO lies the intricate structuring of financing. PE firms work closely with investment banks and lenders to craft a capital structure that optimizes returns while managing risk. This structure typically involves a mix of senior secured debt, subordinated debt, and equity financing.

• Senior Secured Debt: This forms the backbone of the LBO financing and is usually collateralized by the assets of the acquired company. Senior debt holders have priority in repayment in the event of bankruptcy or liquidation, providing a level of security for lenders.
• Subordinated Debt: Also known as mezzanine financing, this type of debt sits between senior debt and equity in the capital structure. It often carries higher interest rates and may include equity kickers such as warrants or convertible securities, providing lenders with additional upside potential.
• Equity Financing: PE firms contribute equity capital to the transaction, typically ranging from 20% to 40% of the total purchase price. This equity investment serves as a cushion against potential losses and aligns the interests of the PE firm with those of its investors.

How do PE firms ensure success with LBOs?

Positive Cash Flow:
Central to the success of an LBO is the target company’s ability to generate sufficient cash flows to service the debt. PE firms conduct extensive due diligence to assess the target company’s financial health, market position, growth prospects, and operational efficiency. By identifying opportunities to improve efficiency, increase revenue, or reduce costs, PE firms aim to enhance the target company’s cash flow generation potential.

Value Creation:
Another key point to understand is that PE firms execute LBOs with the ultimate goal of creating value for their investors. This means that the fund managers are hyper-focused on value creation in their portfolio companies. This value creation can take various forms, including operational improvements, strategic initiatives, and financial engineering. Over the investment horizon, the fund managers work closely with the portfolio company’s management teams to implement value-enhancing strategies and position the company for a successful exit.

Exit Strategies:
Exit strategies for LBO investments vary but typically include selling the company to a strategic buyer, conducting an initial public offering (IPO), or recapitalizing the company to distribute cash to investors. The timing and method of exit depend on market conditions, industry dynamics, and the specific objectives of the PE firm and its investors.

In conclusion, leveraged buyouts represent a powerful tool for PE firms to unlock value and drive growth in target companies. By leveraging debt to finance acquisitions, PE firms amplify returns while carefully managing risk. However, successful LBOs require rigorous due diligence, disciplined execution, and strategic value-creation initiatives. As a cornerstone of the PE industry, LBOs continue to shape the landscape of corporate finance and investment, driving innovation, efficiency, and shareholder value.

Unlock value, drive growth, and amplify returns with Altvia. Discover how our comprehensive suite of solutions streamlines your due diligence, execution, and strategic value-creation initiatives for successful leveraged buyouts. To learn more about Altvia’s solutions, start a conversation with our team.

Key Takeaways from the ACG Mid-South Capital Connection Event in Nashville, Tennessee, 2024. 

This year’s ACG Mid-South Capital Connection Event in Nashville brought together a vibrant mix of alternative asset professionals, from private equity investors to mezzanine lenders and investment bankers, all converging to discuss the pulse of the middle market.

A significant portion of the discussions revolved around market trends and valuations for middle market companies. Topics ranged from the challenges of establishing pricing baselines and employment metrics, to the debate over whether recent valuations signify a new normal or an anomaly. And notably, there’s been a surge in seller rollover equity and subordinated debt, underscoring the evolving dynamics of deal structuring. 

Here were our biggest takeaways for dealmakers:

Are recent valuations the new normal?

Valuation multiples, pivotal in determining purchase prices and subsequent investment returns, are under the spotlight. The consensus was that capital is experiencing a surge in cost. With interest rates climbing, private equity firms are grappling with heightened borrowing expenses to fuel their acquisitions. This spike in capital costs not only diminishes the allure of potential deals but also directly impacts a firm’s capacity to generate preferred returns. 

And despite the inherent unpredictability of market dynamics, the show must go on, so attendees explored strategies to navigate the challenges of deal origination and dealmaking. Among the strategies discussed were adopting value-oriented investment approaches, conducting comprehensive industry analysis, implementing operational enhancements, and employing effective timing and exit strategies. 

Creating a repeatable cash flow model.

In addition to navigating market uncertainties and strategic considerations, having a repeatable cash flow model was discussed as being paramount for private equity investors. A robust cash flow model provides invaluable insights into a target company’s financial health, helping investors gauge its ability to generate consistent returns over time. By meticulously analyzing cash flows, investors can identify potential risks, assess the sustainability of earnings, and make more informed investment decisions. Moreover, a well-constructed cash flow model serves as a crucial tool for scenario analysis, allowing investors to stress-test their assumptions and evaluate the impact of various market conditions on investment performance. Ultimately, a repeatable cash flow model not only enhances investment decision-making but also contributes to the long-term success and profitability of private equity investments.

How are private equity investors creating a repeatable cash flow model? Data and technology. Firms that have a data-driven approach to understanding their business and investment performance are able to analyze historical data, market trends, and other relevant factors to forecast future cash flows with greater accuracy and efficiency. 

AI’s role in dealmaking.

Again, is it even a 2024 event without the topic of AI being top of mind? Amidst the enthusiasm surrounding AI, concerns about its ability to be in compliance with evolving regulations arose. Industry experts emphasized that AI should be viewed as a tool to enhance productivity and efficiency, rather than a threat to human involvement or fact-checking. Just as a summer intern transforms the way we interact with admin tasks, AI represents a natural progression towards greater automation and synthesis of data within private equity platforms and tech stacks.

There’s a clear need for data quality, data visualization, and data analytics in private equity, so the integration of AI into private equity deal flow processes represents a paradigm shift in the way firms approach data analysis and decision-making. By leveraging AI strategically and adopting a progressive mindset, businesses can unlock new opportunities, streamline operations, and gain a competitive edge in an increasingly data-driven world. As we navigate this AI revolution, one thing remains clear: the future belongs to those who embrace innovation and adaptability.

Want to hear more about the ACG conference or how technology can support your firm’s evolving needs? Let’s connect!

For more ACG information, check out our ACG St. Louis DealSource Event recap.