The cycle of fundraise, fatigue, and repeat doesn’t work in today’s competitive environment. Relationships languish, potential leads who are open to subsequent raises lay fallow, and with each new raise managers find they start from square one. In this presentation, learn why fund managers need a systematic approach to engage with investors on an on-going basis, to shorten fundraising cycles and to build longer lasting partnerships with investors.
Topics will include:
- How to create an investor communication plan
- How to market when not marketing
- How to create a capital raising strategy
The New Rules for Investor Relations (Alternative Assets)
1. The New Rules for
Investor Relations:
KAP’sFundraising
FlywheelTM
2. KAP Group provides services and products to private equity and real
estate managers during the fundraising and investor relations process.
KAP’s services are focused on making it easy for investors to invest with
you.
6. The State of Play
Today, over 1,000 private equity
managers and nearly 500 real estate
managers are raising capital
Private Equity (PE) and Real Estate (RE)
Funds in the Market Over Time
812
920
1,153 1,192
466
478
451
492
+
+
+
+
+
8. On The Road
Again
Managers spend an incredible amount of time on the
road raising capital, at a HUGE opportunity cost
24%
30%
46%
Breakdown of time on the road
by RE funds in 2015
Average time in the market by RE estate funds
9. The Old Path
The conventional way of raising
capital – fundraise, fatigue, repeat
– is tiresome, inefficient, and
ineffective
17. Annual Meeting,
Annual Letter
Communication
Timeline
Have a systematic approach to reaching out to
partners and prospects throughout the year
Thank You
Set Expectations
Quarterly
Report
Acquisition
Announcement
Quarterly
Report
Quarterly
Report
Save-the-Date for
Annual Meeting
Disposition
Announcement
18. Good News:
We closed or
sold a deal!
Create a one page summary that describes the
investment, sourcing, returns, and exit assumptions
Resist the urge to send your
investment committee memo
19. Bad News:
Team Changes,
Investment Level
Changes
Pick up the phone to deliver bad news to your partners;
if it’s really bad news, get on a plane
Departures. New Hires Investment UnderperformingIt’s time to make a call
21. JOE FUND I
JOE FUND
MANAGER
SALLY FUND
MANAGER
JOE FUND II JOE FUND III SALLY’S FUND IISALLY’S FUND I
JOE’S FUND ASSETS SALLY’S FUND ASSETS
Know your
audience
Investors are busy! Standout by building a relationship
before you are raising capital.
PORTFOLIOINVESTOR
29. Technology is
Your Friend
Once you have a list of active prospects, leverage
technology to track investor activity and log your
dialogue with investors