Category: Investor Relations & LP Experience

But with so many software options available, how do you narrow it down? Below, we’ll walk you through the five key factors that can help you choose the perfect private equity IR solution.

1. User Interface and Usability

Why It Matters

Let’s be honest: A clunky interface is the last thing you need when juggling pitch decks, LP queries, and compliance deadlines. IR professionals need a software solution that’s intuitive, user-friendly, and—dare we say—enjoyable to use?! With the right software solution, you can engage investors more quickly, raise capital more efficiently, and scale operations easily while significantly reducing time spent on administrative tasks.

What to Look For:

• Intuitive Design: Look for a layout that guides you naturally. Minimal clutter, logical menus, and clear action buttons help everyone on your team quickly find what they need.
• Customization and Personalization: Dashboards should adapt to your workflow—not vice versa. Personalize how data is displayed, ensuring each role sees exactly what’s relevant to their responsibilities.
• Accessibility & Compatibility: Whether on desktop, tablet, or mobile, the software should be accessible across your devices.
• Strong Onboarding & Training: Even the most intuitive platform may require help. Ensure your vendor offers thorough resources like user manuals, how-to videos, knowledgeable support teams, and a dedicated customer success manager.

Pro Tip: “CRMs must offer modern, user-friendly interfaces that cater to tech-savvy users while providing the security and infrastructure to support firm-wide efforts.” – Jef Rice, Altvia SVP of Product & Engineering

2. Reporting and Analytics Capabilities

Why It Matters

Investor relations is all about keeping stakeholders in the loop. That means delivering accurate, on-demand data in a format that’s understandable, actionable, and trusted. Having a robust reporting infrastructure allows you to give your investors real-time insights into performance that goes beyond just emailing static PDFs back and forth.

What to Look For:

• Customization Options: From deal performance to ROI analysis, you’ll want to tailor reports for different audiences (GPs, boards, regulators, etc.) and engage your investors with personalized landing pages and tailored experiences.
• Real-Time Monitoring: Ensure your software continuously updates critical metrics like NAV, distributions, and capital calls so that you can stay ahead of underperforming investments and reallocate resources.
• Integration with Other Systems: Seamlessly connect all your data sources in one place to avoid duplicate data entry and eliminate manual data entry.

Pro Tip: Did you know data-driven firms are 2x more likely to outperform their competitors? Look for platforms that offer visually engaging LP portals—boring, static spreadsheets are so yesterday.

3. Integration with Existing Systems

Why It Matters

Private equity workflows often weave through multiple platforms, from accounting and compliance to PitchBook and FINTRX. The last thing you want is to log in to five different tools, copy and paste data, and pray you don’t make a mistake. Eliminate the inefficiencies of juggling multiple systems with a platform that offers a wide range of integrations. IR systems built atop infrastructures like Salesforce allow alternative asset managers to connect with thousands of apps via the AppExchange, streamlining data collection and boosting user adoption.

What to Look For

• Seamless API Connections: A platform with a robust REST API ensures data flows automatically between your IR software and other mission-critical systems.
• Single Source of Truth: By linking all your tools, you minimize data redundancy, reduce risk, and gain better, real-time visibility into your investment pipeline.
• Customized Workflows: As your firm evolves, the IR software should be able to accommodate new third-party integrations or adapt to unique processes.

Pro Tip: Ask providers if their platform uses REST or SOAP API. Compared to newer alternatives like REST, SOAP APIs limit the ability to adapt to changing requirements and are more prone to security threats like leaked access.

4. Security and Compliance Features

Why It Matters

Data security isn’t a “nice to have”; it’s a necessity—especially in private equity. From sensitive financials to personally identifiable information, breaches can be disastrous for your reputation and legal standing.

What to Look For

• Data Encryption: Look for a platform with a comprehensive security program that meets all privacy requirements and backs up your data at no additional cost.
• Access Controls: User roles, multi-factor authentication, and strict permission settings help ensure the right people see the right data.
• Compliance Management: Keeping up with regulations (e.g., AML, KYC, SEC rules) can be easier when the software automates or simplifies compliance tasks. This ensures data integrity and privacy compliance standards while reinforcing efficient communication workflows.
• Incident Response & Monitoring: Even the best security measures can’t prevent 100% of incidents. A solid incident response plan and real-time alerts are essential to contain breaches quickly.

Pro Tip: Ask potential vendors about their audit trails. Tracking every access or change is invaluable in a compliance-first world. For example, Salesforce Shield allows tracking every action and click someone takes—this can prove invaluable should an employee ever become disgruntled and leave.

5. Customer Support and Training

Why It Matters

Your chosen IR solution should come with more than just software—it should come with a dedicated partner who understands your needs and guides you through best practices. Implementing a new IR solution can be a major shift for your firm, and seamless adoption hinges on having a responsive, knowledgeable partner by your side. The right provider doesn’t just offer technology; they equip your team with the insights and support needed to drive long-term success.

What to Look For

• Fast Response Times: Issues don’t follow a 9–5 schedule. Look for vendors that offer reliable support when you need it most.
• Ongoing Training: Software evolves, so should your team’s skills. Make sure the package includes regular updates, webinars, and training materials.
• Customer Success Teams: A proactive success team will check in on your goals, help with adoption, and provide best practices to maximize ROI—the right provider can do so much more than a weekly check-in meeting. Look for a provider that offers technical account managers who serve as a fractional extension of your team.

Pro Tip: Don’t underestimate the value of strong “hand-holding” during setup. A thorough onboarding process can save countless headaches down the road and mitigate the downsides of providers who boast a speedy implementation process.

To Wrap Up

Whether you’re aiming to ease regulators, wow your investors, or simply create a more efficient workflow, the right IR platform can make all the difference. Raising and deploying capital is hard. Your technology shouldn’t be.

Ready to explore an IR solution that checks all these boxes (and more)? Reach out to us at Altvia to learn how we can help you streamline investor relations—so you can focus on what really matters: delivering exceptional returns and building lasting partnerships to rise above the competition.

After a period of uncertainty and cautious optimism, the private equity landscape is beginning to show signs of renewed vitality, driven by an encouraging shift in the sentiment of Limited Partners (LPs). This resurgence in confidence hopefully marks the beginning of a promising, enduring trend and signals a favorable shift in how LPs view private equity as a cornerstone of their investment strategies. For fund managers, this renewed confidence offers a unique opportunity to re-engage with LPs and secure fresh commitments, laying the groundwork for future value creation. Recent data from Preqin also indicates a notable uptick in investment activity and a growing belief in the essential role of private markets for achieving adequately diversified portfolios.

In this blog, we will cover the key factors contributing to this renewed confidence, explore the shifting dynamics within the private equity landscape, and discuss how fund managers can capitalize on these trends to strengthen relationships and attract new LPs.

LP Sentiment: A Positive Shift

For some time, the private equity sector has grappled with the challenge of maintaining LP confidence amid market volatility and economic headwinds. However, new data suggests that these concerns are beginning to fade. According to fundraising advisor, Rede Partners, investor sentiment towards private equity has shown notable improvement in the first half of 2024, reflecting a growing willingness to deploy capital into private equity funds.

As we enter this promising new chapter, it’s clear that those able to meet LPs’ increasing demands for transparency and reliability will lead in safeguarding existing relationships and attracting new LPs. LPs are actively diversifying their portfolios by forging alliances with GPs, especially those presenting innovative and pertinent strategies. This trend underscores a readiness to explore new prospects and redistribute investments to emerging managers. At Altvia, we’re poised to support fund managers in navigating these dynamics, ensuring they capitalize on this evolving landscape to drive sustained success in private equity.

What’s Driving the Change

According to the Rede Liquidity Index 1H 2024 Publication, several factors are contributing to this resurgence in LP confidence. Notably:

1. Resilience in Performance: Lower-midmarket buyout funds, in particular, have shown consistent performance even in challenging market conditions. The appeal of these funds lies in their potential for diversification and lower exposure to leverage, making them a reliable choice for LPs seeking stability and growth. This consistent performance has reinforced the attractiveness of private equity as a resilient asset class, even when broader markets face turbulence.
2. Innovative Liquidity Solutions: This shift in sentiment undoubtedly reflects the growing creativity among GPs and LPs in achieving liquidity while the M&A and IPO markets remain relatively stagnant. The report highlights that confidence in distributions has rebounded to a two-year high, with an RLI score of 58 indicating that LPs are feeling far more confident in the outlook for distributions. Liquidity has been a primary concern for LPs over the past twelve months, and the ability of GPs to provide reliable distributions has played a crucial role in restoring LP confidence. This increase in distribution confidence signals that LPs are increasingly optimistic about the ability of their investments to deliver returns, even in a less active exit environment.
3. Growing Appetite for Private Markets: The demand for private market investments continues to grow, with LPs increasingly viewing private equity as an essential component of a diversified portfolio. The report shows that LPs have a strong appetite for North America-focused GPs, with the RLI score for North American strategies rising by eight points to 65. Additionally, interest in European markets is also on the rise, with an RLI score of 58 reflecting an overall intention to expand deployments in this region. This growing appetite for private markets indicates that LPs are eager to explore new opportunities and reallocate capital toward promising strategies and emerging managers, further reinforcing the positive sentiment in the sector.

Capitalizing on the Moment

As LP confidence builds, so too do their expectations. LPs are not just looking for strong returns—they want to be assured that their capital is being managed with the highest levels of transparency and care. For fund managers, this means that now more than ever, effective communication and reporting are critical. Hear it from one of our valued clients:

“With Altvia, distributing information to our LPs and prospects save us many, many hours of work each week. In the past, it would be a half-full-day project to send emails out to LPs with the correct documents. Now it can be set up and sent in 1-2 hours. Our LP data is accurate and consistent across multiple investments, which saves us 1-2 days of updating records and sending tax documents for the finance team during audit/tax season. We are also able to create better marketing materials and track LP responses to ensure emails are sent. Overall, this was the greatest platform upgrade we’ve made to date!” https://app.userevidence.com/assets/9702TSLH

As the technology pioneers for alternatives, Altvia’s platform is uniquely positioned to support the above needs, with its ongoing innovation and ability to help firms differentiate in the eyes of LPs. With solutions like AIM and ShareSecure, fund managers can provide LPs with real-time updates, detailed reports, and a transparent view of how their investments are performing. This level of transparency helps to foster trust and ensures that LPs feel secure in their decision to commit capital.

The improving sentiment among LPs presents a golden opportunity for fund managers. By doubling down on efforts to engage with LPs, demonstrating strong performance, and offering the transparency they demand, fund managers can position themselves as trusted partners, capable of delivering results even in uncertain times.

A New Phase of Renewed Confidence

As LPs renew their confidence in private equity, fund managers have a critical role to play in sustaining this momentum. By prioritizing transparency, communication, and performance, firms can build on this positive sentiment and drive long-term success. At Altvia, we understand the need for transparency, effective communication, and robust performance reporting to ensure strong and modern GP-LP relationships. Our platform ensures that you can meet—and exceed—those LP expectations, positioning your firm as a leader in the industry. Talk to one of our experts to learn how the right technology infrastructure can help you strengthen existing relationships and secure new commitments. https://altvia.com/book-a-meeting.

Key Takeaways from Private Equity International’s Investor Relations, Marketing, and Communications Forum New York 2024.

It’s one of our favorite times of the year – PEI’s Investor Relations, Marketing & Communications Forum in NYC. This premier event of IR and marketing leaders in private equity explores the biggest pain points impacting their roles, new strategies, and best practices of fundraising, LP relations, branding, and communications.

As a proud consecutive sponsor, Altvia had the opportunity to be onsite, as well as participate on the “Investor Engagement: Leverage technology to prospect and engage new investors” panel.

And while the overarching sentiment was that it’s more competitive than ever right now for GPs, the energy and ideas were flowing and one recommendation was clear and recurrent: the power of staying connected with LPs — not only when it’s convenient, but consistently and genuinely — is paramount in staying top of mind.

Here are our biggest takeaways from this event:

Staying connected with your investors isn’t just a checkbox in your CRM.

While securing a first meeting with a prospective LP is the first hurdle, the real test lies in maintaining momentum and fostering deeper connections in-person and digitally in subsequent interactions. 

Altvia’s Chief Strategy Officer, Jeff Williams, was quoted saying “It’s Not Your Dad’s CRM” during his panel session on how to leverage technology to prospect and engage new investors. And, well, yeah it’s true. Modern CRM and relationship management have evolved. It goes beyond mere data entry and simply cannot be a rolodex of contacts. Staying connected and developing long-term relationships with investors requires effort. The right technology can help you with that. It can help you answer LP questions with proactive transparency, concise answers, and readily available fund information. If you have this infrastructure properly built and adopted at your firm, we believe you will be a differentiated GP in today’s landscape.

What LPs truly want from GPs.

Limited Partners want transparency. The value of straightforward communication that is backed by clear data is key. Being able to provide quick and comprehensive responses to inquiries demonstrates a level of preparedness and professionalism that fosters trust and confidence in the partnership.

LPs require actionable communication. Understand the specific interests and preferences of potential investors before reaching out. A personalized approach not only increases the likelihood of securing a meeting but also lays the foundation for a fruitful partnership down the road. 

Show, Don’t Tell. Don’t get caught up with flashy sales pitches. LPs appreciate when GPs let the numbers do the talking, providing concise and data-driven insights into their performance and strategy. If you’re an emerging fund manager, you can differentiate by providing white papers or documentation that clearly outlines your unique investment strategy. 

Is your storytelling compelling enough?

Having the ability to connect the dots and know where to prioritize your time with the right relationships is essential, but that’s only half the battle. Having a great relationship is one thing, but what happens next? This is where thesis storytelling is a powerful differentiator for GPs seeking to capture private equity or venture capital investor attention. Whether it’s conveying the excitement surrounding a new investment opportunity or articulating the vision for future growth, storytelling can transcend numbers and leave a lasting impression.

But here’s the thing, the art of strong storytelling comes from the ability to align interests and understand what truly matters to your audience. And that’s precisely where the right technology can play a pivotal role. It empowers you to tailor your narrative, anticipate investor needs, and deliver personalized experiences that resonate deeply—ultimately enhancing your fundraising and dealmaking performance.

Do more with less, or work smarter, not harder?

It wouldn’t be a current event without talking about the hot topic of AI. Embracing AI isn’t just about doing more with less; it’s about doing more intelligently and strategically, positioning firms to find operational advantages over other fund managers. 

It’s evident that adopting AI in your daily workflows can increase productivity. And early AI adopters are seeing the results. AI holds the promise of redefining workflows and streamlining manual tasks into concise summaries and recommended prioritizations. And as we get smarter in how we utilize this emerging technology, it will get smarter in how to best serve our workflows. That said, it must be recognized that AI needs human guidance for guardrails and fact-checking. Particularly being thoughtful about regulations, compliance, and data security.  

We’re in this together.

All in all, it was great to be surrounded by such high-caliber professionals in the alternative asset space. And it’s evident that no matter which boat you’re rowing for, everyone is rowing in the same upstream direction, searching for ways we can continue to further improve the private capital market that we all love.

Want to hear more about the conference or how our award-winning technology can support your firm’s evolving needs? Let’s chat!

How can data be used more effectively?

First off, data should be used to help drive decision-making. No question about it. The reality, though, is that good investors have instincts and don’t make decisions purely based on data. When you combine that with how much is available after making an investment decision, the big opportunity for data is in telling a story. At the end of the day, it’s about building trust between GPs and LPs. There are regulatory requirements for what should be reported and how it should be laid out, but that’s only a small part of it. It’s about sitting down together and saying: here’s the story. When you have data and flexible ways of understanding it, that helps you demonstrate and tell the story of why you’re truly different. And that’s what LPs are dying for – to be shown something different.

Where do LPs most want to see improvements in communication from GPs?

Recently, we’ve had a lot of open and honest conversations about response speed – something that historically nobody has wanted to talk about. I’ve been an LP and when you make a request, you know the timer has been set. Once set, GPs are concerned that they’re now being judged, and for good reason, because LPs have confirmed time and time again that they are! The issue for GPs is that they can always share more information and take longer. But if it takes too long, there’s a point at which the information you’re sharing has diminishing returns. LPs seek trustworthy managers, and trustworthy managers should offer breadth, depth, and speed.

How do CRM needs in private equity differ from standard platforms?

For the most part, people view a CRM as a Rolodex-plus. But we’ve arrived at the belief that the customer – the LP – is the only reason anybody is doing anything. LPs are buying a service, and what the customer gets is information about the service and the investment decision.

So, managing the relationship with your customers is about understanding your investment portfolio, the deals you are looking at, performance, growth, risk, and so on. We’re focused on enabling the full picture. As such, our CRM is about bringing data across the firm together and putting it into a helpful format, so that the people managing the relationship can create a better experience for the customer.

Where in the investment lifecycle should GPs focus?

I think GPs are feeling that they need to get it together across the board – or are worried that somebody else is getting it even more together, and faster. Some are running around trying to create a façade that they’ve been diligent and systematic, but they are leaving gaps. LPs are after greater detail, and are judging GPs on how they respond. Whether it should be or not, the reality is that it has become a proxy for how well the fund is run and managed.

Data is crucial to decision-making. What are the main issues with GP data?

The focus is on proprietary data. If we all have the same data, it’s just a race to slice and dice it. So the focus is on proprietary data, on quality and accuracy, and on how you get it. Lots of data is still encapsulated inside documents, in poorly formatted text strings and lengthy email chains, so the focus is on harnessing all that data efficiently, no matter where it is. There are technology tools to help with both accuracy and quality, detecting and fixing issues with high confidence. But those tools don’t get used if the data is never captured from an inbox, document, or even from a verbal communication.

What technologies do you think will have the biggest impact over the next few years?

We’re having an AI moment and everybody feels they need to say something. That’s how we know that there’s something truly there, but also that there’s a lot of noise. What we’re really interested in is wading through the noise to find exactly where AI can solve real problems in novel ways. Right now, much of the noise is coming from AI being a solution looking to find problems to solve. But these periods of upfront mania are well understood among psychologists and analysts, and they come at the beginning of innovations that will have long-term value.

I’ve had the chance once again to attend another outstanding Private Equity International Investor Relations, Marketing, & Communications Forum. I’m on the record as believing this is the premiere event in our market and, while this was the first time attending the west coast version in San Francisco, that sentiment remains the same.

There is no event I regularly attend that is nearly as collaborative and as audience-focused as the PEI events. The audience produces the overwhelming majority of the event’s content, and together with the spirit of collaboration PEI has instilled culturally in these events, there’s just simply no replacement for how much can be learned and is actionable coming away from these events.

I’ll share all sorts of learnings, but before I do, let me once again acknowledge the evolution of these events. From the first I attended back in 2012 or so, the makeup of attendees has changed in interesting and encouraging ways. First and foremost, it’s very rewarding to see so many women now in these roles and attending these events. It’s one of the few events in this market where you’ll find that women make up the wide majority of attendees, but — as one poll during the event uncovered — many of the people in these roles (and specifically the women that are in them) come from diverse backgrounds where financial expertise and experience is not necessarily prioritized. Instead, the people in these roles are coming from strategic marketing and communications roles and being hired, in many cases, to establish this function inside private market firms. This is something of a departure when compared against 2012, when it seemed to be attended by more men than women, and in many cases those men were adding the responsibility of marketing and communications to other roles they also owned. If nothing else, it suggests that private market firms have seen these roles and these functions as strategic and have staffed accordingly.

Let’s talk about the outstanding content. If the makeup of the attendees and the roles they’re in weren’t enough to convince you that private market firms are seeing marketing and communications as a strategic opportunity, the content certainly is. It is within the sessions where you can find folks being surprisingly transparent about strengths, weaknesses, opportunities, and even threats. Most of the sessions are intentionally off the record so as to encourage this sort of transparency, and is appreciated by all. You’ll hear tough questions, honest answers, and it’s all guaranteed to be thought-provoking.

For me there were a number of key takeaways:

1. LPs have never asked for more transparency and GPs have never worked so hard to provide it. It’s convenient to be a software provider at this event because software, together with third-party services and many of the vendors who attended, are the obvious places to turn to find leverage for doing so, and the opportunity where these dynamics meet is massive.

2. Investor Experience matters. There was an entire workshop session on the topic, and the short and the sweet is that it goes way beyond transparency to include consideration for offering LPs co-invests as well.

3. Marketing and communications to LPs and the LP prospect universe is a full-contact sport that many firms are aggressively resourcing to go after. Hiring seasoned communications professionals to institutionalize this as a practice inside their firm. There were workshops on proactive social media strategies, and one on considerations for how to market the private markets to Gen Z. There were sponsoring vendors that provide services on how to develop these strategies, those who provide video production services, and everything in between. The whole domain has changed markedly and I’m here for it.

4. Impending regulation stands to impact the entirety of this domain, and while there are more questions than answers in certain regards, private market firms are embracing change in how they market, how they communicate performance, and how the systems and processes they currently have in place will likely have to change to accommodate new regulation.

It would be impossible to convey everything discussed at PEI’s 2023 west coast event, but that’s why you’ll just have to attend for yourself next year!

Growth investing has been around for a long time. However, it’s largely been the domain of specialists and ignored by most investors.

That has changed significantly in recent years. Digital technology has disrupted “business as usual” and created new interest in growth equity and late-stage venture capital.

In fact, these growth classes have added assets under management (AUM) at double the rate of buyout over the past 10 years and produced deals at an astonishing rate. Recent figures indicate that growth equity and venture AUM have reached more than 80% of the buyout total.

The Flywheel Effect

In mechanical science, a flywheel is a heavy revolving wheel that increases a machine’s momentum and provides a power reserve that helps keep the device moving. That dynamic is increasingly at work in the symbiotic relationship between companies and technology investors.

It’s driving explosive revenue growth and profitability. And as a result, it’s attracting a significant amount of private capital and delivering stronger returns faster than private equity in general.

Here and Gone or Here to Stay?

Investors tend to be skeptical by nature. Those who aren’t often aren’t investors for long. So, they’re asking whether this powerful flywheel will continue functioning or is a transient phenomenon. After all, it’s elevating the valuations investors are paying, so they’re certainly hoping it continues.

The answer is unknown at this point. However, what is known is that the rush to cash in is leading to some transactions that most would consider ill-advised.

Still, there are signs that tech-focused investing has a relatively strong foundation. That’s because the target companies have crucial features like identifiable addressable markets and plans for becoming profitable. Contrast this with the dot-com bust, where investors put money into companies that, in many cases, had no plan for or path to profitability. 

Velocity and Prices: Both Are Increasing

Significant valuation increases continue to occur. As they do, they attract many types of growth investors, from hedge/crossover funds to traditional growth funds. The number of investments from these funds ranges from nearly 70 to almost 250.

Not everyone is “all in,” of course. Diversified buyout leaders are moving more cautiously. Many seem to believe that value-creation principles that have worked for them in buyouts will eventually deliver similar results in growth investing.

Hedge/Crossover Funds

These funds are the pacesetters in growth investing. Their behaviors have changed the rules and the competitive landscape.

The keys to success when they find it is that they make fast decisions, have aggressive equity funding, and are agnostic in their approach to control. They no longer rely on a buyout model based on high-touch interactions, leverage, majority ownership, and value creation.

Traditional Growth Equity

These funds have always been focused on growth in the niche between early-stage venture capital and buyout firms. But until recently, they operated more like buyout investors, with very deliberate deal-making.

Now, with more capital and opportunities available, they’re getting more involved in growth. And that statement applies to all funding rounds (early-stage to buyout). These investors are also exploring new geographical locations.

Buyout Funds

Fund mandates like controlling interests and getting board seats have limited traditional PE firms historically. But the wealth of opportunities has caused many buyout firms to establish growth-focused funds with more mandate flexibility.

Blackstone is a prime example. Its Blackstone Growth fund is the first in the company’s history to focus exclusively on growth. Blackstone has also built a team of growth experts, which tells you a great deal about where they’re heading and their objectives.

The Right Tools for the Job

Whether in growth investing or elsewhere, there are ample opportunities out there currently. Do you have the right systems in place to identify and pursue them?

The Altvia product suite is built to help firms move as quickly as they’d like to but always with advanced capabilities in outreach, stakeholder interactions, and more. Contact us today to request an informative demo.

You’ve networked as much as possible, gathered and implemented feedback, and refined your approach—you’re ready to raise your first fund! But, before you can begin pitching LPs, you’ll need a solid deck on hand.

If you’re raising your first private equity fund, you may wonder, “what should be in that deck?”  To answer that question, we’ve put together a step-by-step checklist to help your firm assemble a fool-proof deck so you can effectively pitch LPs.

1. Start by Setting the Stage
   
   Before diving into the details, it’s a good idea to start your private equity fundraising deck by setting the stage, areas, and locations of where you want to focus your investments.

   Are you focused on investing in pre-seed or series B? EdTech or VR? US only or EU? Answer those questions, and show why your focus has value. As an example, if you’re going after VR/AR, explain how the market is projected to grow in revenue over time and the big players that are pioneering growth.

   By setting the stage in the first few slides, you’ll make it clear to LPs whether or not you’re aligned with their business goals from the start.

2. Say What You’re Looking For 

   Next, share exactly what your firm looks for in a future investment. Do you have clear guidelines when it comes to market potential and valuations? Are you looking for specifics in regard to team members and advisors? Are there clear exit opportunities – like a path to M&A or IPO – that you’re going after? Outline all of that for LPs to know first before diving into the rest of your deck.

3. Share Your  Vision

   From core values and mission statements to commonalities between companies you choose to invest in, private equity fundraising places high importance on shared values and visions. Tell LPs precisely what they can expect from you so they can best determine how your brands’ align. 

   As an example, in Day One Ventures’ fund deck, they clearly outline what the “Day One Spirit” looks like at their firm, which includes:

   – Customer Obsession: Great Companies are built around their customer’s needs
   – Empathy: Great founders appreciate people and treat everyone daily
   – PR Worthy: The company should be at the point where PR and marketing will truly move the needle

   By sharing core values from the get-go, you can help LPs determine if you’re the right partner based on goals, ideals, and future visions.

4. Layout Your Deal-Flow

   Once LPs have an idea of what a partnership could look like with your firm, it’s time to layout your deal flow in a way that’s easy to follow and comprehend at first glance.

   List out specifics, like the number of opportunities you receive each month, how many move forward to due diligence, and how many investments you close. It’s also helpful to include the channels in which you source your deals (organic inbound, network referrals, and co-investors) so LPs know what they’re up against.

   
   Image Source: Day One Ventures’ Fund Deck
   

5. Prove Your Value

   VCs that don’t provide the right value and support can quickly become an unnecessary middleman. Show LPs the value you can add beyond a check by identifying key signs and effects to consider.

   If your firm is competitive in the deals you enter, list how, and the effects that can have on the LPs you partner with:

   

Image Source: Day One Ventures’ Fund Deck

6. Show-Off Your High-Quality PR

   When looking to secure funding, LPs want to ensure they land an investor that not only understands the importance of PR, but can also help them level up their communications to attract new customers, add value for partners and investors, hire top talent, and more.

   If your firm excels in this area, show off a bit here, highlighting examples of press you’ve helped others with, including direct links to stories and features that have driven results.

7. Outline the Onboarding
   
   LPs want to understand how you’ll help them during onboarding – and this is your chance to tell them what sets your offerings apart.

   From learning about business objectives and aligning them to core messaging to providing in-depth media pitching, share what your firm does to take an active role in helping your portfolio members grow.

8. Focus on the Big Vision
   
   Finally, don’t forget to keep your long-term, “big vision” in mind. Why is your firm in business; what’s your end goal?

   Remind LPs of your core purpose so they have a clear understanding of who you are and why you do what you do. 

Organize Your Fundraise with Altvia

Getting your deck in a good spot is just the start to a successful first fundraise. Next, you need to quickly identify the right LPs to go after and communicate with them effectively throughout the funnel. Altvia can help.

From organizing a database of high-caliber contacts to providing transparency on tracking, conversions, and communications from deal-sourcing through to value-adding and reporting, Altvia’s software can help supercharge your efforts.

To learn more, get in touch with our team to start a conversation. 

Once you’ve thoughtfully designed and structured a fund, it’s time to bring it to market. And, to effectively attract your ideal investor, you’ll need a solid marketing strategy in place. To craft that strategy, it’s good to get a concrete understanding of how fund marketing operates, along with the key activities that occur in each stage. 

So when is the exact right time to market your fund to new LPs, and how can you best do it to secure funding from your target investors? The right answer depends on exactly where they are in the funnel. 

The Fundraising Marketing Funnel

When bringing your fund to market, you can think of it as broken down into a few core stages – design concept (and aligning content), go to market/first launch, fundraising, first and second close (i.e., securing investments), and engagement, each with their own substeps to best align to your target investor.

Stage One: Design Concept and Content

Before you bring your fund to market, you’ll need to spend a considerable amount of time designing your concept and learning as much as you can about your target audience. 

Investor targeting is an essential step in the fundraising process. By developing a concrete understanding of your ideal investor prior to launch, you can best cater your messaging and content to their needs and preferences and reach them through their preferred channels.

Begin by thoroughly researching the investor types you’re targeting, and learn their preferred needs, interests, and where they spend their time (i.e., email, social media, news outlets) so you can meet them where they are. Once you have an idea of the types of channels and tactics you’ll leverage to reach your target investor, it’s time to prepare your content pillars. 

Content pillars are used in marketing to help align your content to each stage of your fundraising funnel. For example, in the launch stage, your top-of-funnel content should aim to provide a general overview of your fund through social media posts, email blasts, or blogs that layout basic information for investors just learning about the fund. This content should include why you’re launching the fund, what differentiates it from the competition, and provide answers to basic frequently asked questions. 

By having your content ready for every stage of the funnel in advance, you can easily automate the fundraising process throughout each stage of your outreach. Whatsmore, by leveraging LP management software (like Altvia’s CRM), you can run your content pillars on autopilot. Arm your team with the exact messaging and content they’ll need to automatically enable, and convert, investors at any stage in your funnel.

Stage Two: Go to Market / Launch

Your go-to-market stage, aka your launch, is critical to the overall success of your fundraise. Before you do so, however, be sure to educate your internal teams on all launch material and content, so they’re ready to tackle any conversation that comes their way.

You’ll also want to ensure you’re not relying on a single, standard pitch angle. Work with your PR team to prepare diversified pitch angles that align to each investor demographic, so they’re more likely to relate to your pitch and engage with your firm. Then, when it’s time for launch, effective PR positioning is crucial. There is far more value in reputable journalists and writers saying nice things about your fund than just having you talking about it. In turn, be sure your PR team is armed with the resources they need to make a big splash on launch day. Helpful material for the PR team includes announcement material, social media posts, videos, emails – anything that helps you get the message out effectively to your industry.

And finally, be sure to keep your campaign going well after launch day. As part of your marketing strategy, you’ll want to have at least six months of promotions planned out that focus on converting those simply aware of your fund into qualified leads. Think: lead generation material, like trade shows, webinars, downloadables, and value-adding content. 

A consistent and persistent approach to drive and convert leads will fuel your pipeline with sales-qualified investors on an ongoing basis, making your fundraising that much more successful.

Stage Three: First and Second Close

Now that you’ve done the hard work of setting up your content for each stage of the fundraising funnel, it’s time to partner with sales to best enable them to take those leads through to close. 

This supporting content and messaging should align and provide value to LPs that have already met with your sales team and are ready to invest. Think: information-packed white papers and sales sheets that contain relevant statistics and decision-driving material. 

By having your bottom-of-the-funnel content locked and loaded in your LP management software, your firm’s sales team will be able to easily access material to best answer questions and support potential investors through to close.

Stage Four: Engagement

After helping an LP cross the finish line and close, your marketing doesn’t end. In fact, we could argue that this is the most critical stage and opportunity to provide additional value.

By leveraging your LP management software and CRM, you can set up custom marketing flows that deliver content on an ongoing basis, including tips and resources from your blog, sales check-in emails, and general resources to add value and keep an open line of communication. 

Keep Different Demographics in Mind

Regardless of the funnel stage, it’s important to keep in mind that your marketing approach and messaging may differ depending on your target demographic. The US vs. Asia-based managers have different rules and regulations regarding marketing and knowing them before you launch your fund can be key to closing the deal.

For example, while social media and web pages may be an essential part of your strategy in the US, for non-U.S. managers, ensuring there is no “general solicitation” (i.e. broad marketing of fund interests, including via social media or publicly available web pages) is critical.

Level Up Your Marketing with LP Management Software

Marketing a fund to LPs has a lot of moving pieces. It’s easy for content and messaging to get lost in the shuffle between different funnel stages and different approaches depending on demographics.

To centralize and automate your approach at each stage of the funnel, a solution like Altvia’s can help. By providing detailed investor-level insights and information, your entire team can gain access to conversations with each investor and powerful data as to how each lead engages with your firm and content – including emails they’ve opened or clicked and web pages they’ve visited.

To learn how you can better execute your marketing and optimize your campaigns at each stage of the funnel, get in touch with our team to see how Altvia can help fuel your firm’s marketing strategy.

Impact Investing: What Board Members Want Today

As Investopedia explains, “Impact investing is an investment strategy that aims to generate specific beneficial social or environmental effects in addition to financial gains. Impact investments may take the form of numerous asset classes and may result in many specific outcomes. The point of impact investing is to use money and investment capital for positive social results.”

Historically, being a board member for an impact investor or a not-for-profit entity was strictly an honorary position. Increasingly today, board members are taking a more active role in the organizations with which they are associated.

For example, they’re taking steps to ensure that their organizations are getting to see the best investments. While there is no shortage of organizations asking investors for money, savvy investors are realizing that the best deals don’t just fall into their laps. They have to identify and track their best deal sources and cultivate them so that they consistently have access to those investments—opportunities they might otherwise miss out on.

Having a system in place to track the big players in your space, the conferences that produce the most deals, and who you need to keep in touch with to generate those deals can be extremely helpful.

Impact Investing and Due Diligence

Another thing board members are expecting is more thorough diligence on the investments they approve. When investment teams make recommendations to boards, members are now asking for more than just a recommendation.

They want to see evidence that supports their approval of the investment, and they want to be assured that the deal has gone through the proper due diligence. This includes examining financials and business plans. Every grant or investment must be properly vetted.

Historical Analysis is Crucial

Board members today also want easy access to a historical analysis of investments. They use that information to spot trends and identify new topics or themes. For example, the data shows that after a major disaster, it’s common for the impact investment community to renew its focus on disaster relief.

Some organizations have capabilities in place for analyzing historical data in order to anticipate trends. However, it often takes a significant amount of time to compile such an analysis.

Impact Investing and Cash Flow

Transparency regarding cash flow is also an area of emphasis for board members. Many impact investors make commitments that span several years, and the recipient has to meet certain benchmarks along the way to continue to receive that money.

Tracking not only the money that has been invested but also the money that has been promised can be difficult. Often, it requires more sophisticated technology—a solution that enables an executive director to determine whether the organization has the funds to invest.

Clarifying the Results

Now, more than ever, board members are asking, “So, what?” There is an increasing focus on the results of social investing.

How many schools were built? How many gallons of clean water were produced? How many jobs were created? Board members today realize that the most important question to answer before investing in a social entrepreneur is, “Will the investment do any good?”

The most successful impact foundations and managers, using today’s advanced technology, are more able to give helpful and highly accurate answers.

No one wants to spend their days doing mundane, repetitive, or standard functions, and executives are no exception. The desire to move from the routine to the strategic is never more obvious than when looking at private equity CFOs’ priorities for the future.

In an E&Y Global Private Equity survey, this shift was dissected and the three areas where CFOs want to be more strategic are:

• Portfolio analytics
• Technology
• Investor relations