How to Keep Your Investors Coming Back for More



This is the third post in our series The Stages of Investor Experience.

In our last post in this series, we covered how reducing friction can help you close a fund quickly.

Once you’ve raised the money for the fund, you may feel that the hard work is over. But even though you’ve secured and committed the business, you’re still only halfway to a successful investor relationship. The truth is that the real work is just beginning.

The worst thing a firm can do is behave like their job is done once they’ve closed an investor. To build trust with investors, you need to manage your relationship with them. Paying careful attention to their needs is a critical first step that will pay off now and in the future.

In today’s competitive landscape, investors have plenty of choices. When you provide them with value, you earn their trust—and loyalty. We’ve outlined the key ways your firm can build and maintain long-lasting relationships with investors. Is your firm using
these approaches?


Build Trust every day


Trust is fragile and takes time to build. Once it’s gone, it’s nearly impossible to rebuild your credibility. Best-in-class private equity firms take a “white glove” approach to
this important element of relationships—exceeding their investors’ expectations whenever possible.

With half of investors saying their trust must be constantly earned and maintained, here are three ways your firm can make sure you’re on the right track:

Be transparent. This might sound obvious, but honesty is the number one way to build trust. Always tell the truth. Once an investor feels they have been misled, you’ll have a tough uphill climb back to a productive relationship.

Follow up. Even if you don’t have an answer to their question, let them know you are working to fulfill their request. Lack of communication is cited as a top reason investors leave firms, according to a 2018 report by the CFA Institute.

Deliver more than expected. As busy investors, your clients don’t have much time. Give them what they ask for while looking for ways to delight them. Set clear expectations for deadlines, priorities, and goals you both mutually agree upon.




You don’t have to be a mind reader, but knowing what your investors need before they do is something best-in-class firms do as a matter of course. Successful firms make a habit of providing their clients with the latest market knowledge, industry information, and of course, timely reporting on investments.

The key is to stay in tune with your client’s business and where their other investments are located, so you can provide additional value. Showing them that you are holistically paying attention to all of their needs—not just the ones inside your firm—will help keep you top of mind for additional funds in the future.


Understand Relationships are Cyclical


Two-thirds of institutional investors are planning to add to their manager lineups in the next one to three years, and the majority of these say they would prefer to work with a manager with which they already have a relationship.

Makes sense, right? If you’ve been working hard to manage your existing investor relationships—earning their trust and anticipating their needs—you will set your firm up to be well positioned for a “yes” from investors when asking them to be involved in the next fundraising opportunity. Not only will you be a natural choice for investors, but you’ll also have the added advantage of a proven track record.


Embrace Secure, Convenient Technology


Investors are too busy to wait for the next reporting cycle or to ask you for the latest fund performance report. Thankfully, with today’s technology, they don’t have to.

Just as a central storage solution can help you reduce friction to close a fund quickly, a central, secure hub can simplify the day-to-day back and forth between Limited Partners (LPs) and General Partners (GPs). (And make your job easier.)

With our ShareSecure platform, for example, your investors can:

  • Request, capture, and track digital signatures from ShareSecure users and receive
    status notifications

  • Post, share, and track files such as videos and recorded webinars to take fundraising and GP-LP communications to the next level

  • Accurately manage and track documents from draft to final, published version with the ability to require final primary admin approval before users are granted access

Of course, when choosing a software tool for your investors, you’ll want to be sure to put their minds at ease by choosing a secure solution with built-in compliance. The 2018
CFA Institution
lists data-breaches as the top reason why institutional investors leave a fund manager.

There’s no question that Private Equity is experiencing a golden age. To differentiate from other firms, you must nurture investor relationships. Managing your investor relationships by building rapport, acting with integrity, and fulfilling your commitments will cement your firm’s reputation in the marketplace for its continued success.

If you’re looking for more guidance on ways to improve the investor experience, read our full guide by clicking below and be sure to subscribe here for future insights.

Read the Guide