As we discussed in a recent webinar with PE Hub, GPs are finding it increasingly difficult to differentiate themselves. Fund managers are vying for the same LP dollars and LPs are demanding a better experience—supported by increased transparency and real-time data. The key to differentiation is to create a stronger relationship, by providing a better investor experience. But how can firms, fund managers, and IR teams create an excellent LP experience to attract the top investors and opportunities?
Once just a simple lunch and presentation, annual meetings have morphed into a critical event for GPs. These days, while the usual topics are still on the agenda, there are several factors upping the ante when it comes to the planning and preparation.
It’s no longer enough to simply put together a nice looking report with pie charts and bar graphs. These days, the success of your business depends on understanding the impact of the relevant data—and sharing it openly with all stakeholders involved. After all, if you don’t, your competitors surely will.
With fierce competition over funding the next big startup, maintaining a solid reputation with potential investors has never been more important. One way for IR teams to stand out is to offer a personal touch. Any firm can send generic emails, but to get an important investor’s attention, you have to show you know and understand their needs. Enter Customer Relationship Management (CRM) technology.
Despite leveling off, the boom in so-called shadow capital for private equity firms is still going strong. Following 2008’s economic downturn, global PE direct investment deals more than quadrupled between 2009 and 2013. This year, the majority of Limited Partners who attended the PEI IR & Communications Forum reported participating in co-investment opportunities. It’s a trend that seems here to stay.
To compete in today’s marketplace, a personalized, strategic approach to relationship management—especially with Limited Partners (LPs)—is the way to go. Adopting a more personalized and strategic approach to relationships results in a better, more meaningful network over time, leading to more profitable deals.