Private Equity Fund Raising Deals

Private equity fund raising can be an intimidating (but essential) part of starting up a new investment company. To find LPs, and reach your goals, you need to leverage your network. This requires deliberate relationship-management using the appropriate techniques and tools.

LPs are investors who pledge capital to an equity fund that is private. They are usually large institutional investors, such as pension funds, endowments and mutual funds. Sometimes they are wealthy family offices or wealthy individuals looking for a return in a private equity. In addition, certain LPs can be funds-of funds which have the resources to invest in a variety private equity funds. They can help you build a portfolio with diversified investments.

To be a qualified LP, you must meet certain criteria. Generally, LPs look for an investment strategy that is compatible with yours, a track-record using a similar strategy and an investment commitment. They will also expect you to be familiar with the operation of your fund and be able to demonstrate why it is worth investing.

To get the most out of your LP relationships, it’s a good idea to have your legal team prepare your offering memorandum and partnership terms and subscription agreement https://www.operationalroom.com/a-virtual-data-room-or-box-which-should-you-use/ prior to the time you actively search for potential LPs. It’s also a good idea to review your internal capabilities in investor relations and look into hiring an agent for placement.