It’s increasingly difficult for General Partners (GPs) to differentiate themselves. The appetite for risky deals is lower than previous periods so fund returns converge to similar levels more often. Your firm is likely vying for the same Limited Partner (LP) dollars and your LPs demand a better experience with increased transparency and real-time data. The key to differentiating your firm in this post-pandemic world is to create a stronger relationship by providing a better investor experience. But how can your Fund Managers and Investor Relations Team make the experience that attracts the top investors and opportunities?
Since the pandemic began, LPs also began asking more questions. Private Equity International surveyed 80 institutional investors on the clarity they have on COVID-19’s impact on portfolio performance; The results show that almost two-thirds of investors do not feel they have good visibility.
What level of visibility do you feel that you have on the impact of COVID-19 on your PE portfolio performance?
Almost two-thirds of investors do not feel they have good visibility on the impact of COVID-19 on their funds’ portfolio companies. When PEI asked fund managers about their correspondence with investors, 61% stated they are being asked by LPs for more frequent reporting of portfolio company revenues in light of COVID-19.
In that same survey, PEI asked 120 Fund Managers about their communications with investors and 61% stated LPs request more frequent reporting about their portfolio companies since the pandemic began.
While increasing stakeholder requests is far from new, your firm will likely have to rethink how they communicate and handle in-person engagements with current and prospective investors.
Your team might evaluate the technology they use to drive excellence in their LP relationships while they now work remotely. In addition to clearly defined internal processes, the technology you need to compete in this new environment includes:
- A CRM built for the Private Capital Markets
- An email communication tool integrated with their CRM
- A Portal for Investors to self-serve
- A Business Intelligence tool to turn data into actionable insights
In this guide, we demystify the secret of how firms effectively use technology to increase investor confidence, satisfaction, and commitments when operating for the new normal.