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Life as a Limited Partner during the financial crisis – The Good, the Bad and the Ugly

May 18, 2010 3 comments

[tweetmeme source=”mattcg” service=”bit.ly” only_single=”false”]

LPs demand better communication

GPs with poor communication are losing out

Earlier this month I had the honour and pleasure to be invited onto a panel at the 6th Annual Private Equity Forum at my alma mater. The panel sought to address how LPs had been affected by the financial crisis and, not being a Limited Partner myself, I thought it prudent to ask some, beforehand. If you were one of the 60 institutional investors into private equity that responded to my questionnaire, many thanks!

In any case, and as my colleagues predicted, there was no real need to call upon the research findings during the event. But some of the findings were so intriguing that I wanted to share them with you. I hope you find them as interesting as I did.

The link below will take you to a summary of the results.

Limited Partners in a New Era – the Good, the Bad, the Ugly

People prefer performance, and that will never change, but we found that many LPs had already ditched managers that they felt had not been communicating with them sufficiently well and some found that misalignment of interests between LP and GP (shock! horror! such DO exist!) had become more apparent during the crisis.

There’s much, much more in the full report, so I hope you will take the time to dive in. If you have any questions or comments, you know where to find me!

Social Capital: Top 5 “Do”s and “Don’t”s for buyout houses on Twitter

October 23, 2009 Leave a comment

I was prompted by an interesting article by Erin Griffith at peHUB to return to a subject that interests me greatly. A little while back, I pondered on the slow uptake of social media amongst buyout houses. Some readers thought it nonsense that any kind of tweeting might bring dividends, whilst others saw some potential, if not the means to reach that potential, past the obstacles that clearly exist.

Well, my aim is not to reopen that particular debate. Private equity and venture capital firms, whether they like it or not, are under increasing regulatory, media and public scrutiny. Ultimately, they must make a choice: stay "closed" and simply watch, as public opinion (and the regulatory change that often follows) is formed without their input, or engage with regulators, the press and the public and influence that opinion.

Of course, some private equity types are already on Twitter, and I’ve collated a bunch in this list so that you can easily follow them, all at once. There is another list for venture capitalists, too.

Anyway, here are five things to avoid if you are working in private equity (I’ll put together a list of things to be encouraged soon):
Things to avoid:

  1. Don’t EVER tweet anything you wouldn’t say to a journalist holding a dictaphone
  2. Don’t set up an account in the name of your firm and expect people other than journalists to follow it. People like people, and they follow them, too
  3. Don’t limit your tweets exclusively to work activity. Although your followers are probably following you because of what you do, the occasional reference to show that you are human won’t hurt. @fredwilson is a VC with a good following (and a great blog) and he gets mad when the Jets lose. It’s not a problem!!
  4. Don’t forget that direct messages (syntax=d [username] [message]) will only be seen by the intended, named, recipient, @ replies that START with the @[username] formulation will be seen by the [username] you reference, those on Twitter that follow both you and that [username], AND anyone that visits your profile page at http://www.twitter.com. If you just want to reference someone in a message that you want the whole world to see, best start that message with something other than the @ sign. Mark Suster has a whole blog entry on the @ sign in tweets
  5. Don’t sign up to any extra services or (perish the thought) games that hook into your Twitter account without checking that they won’t send a tweet “on your behalf” inviting all of your potential business partners to join your mafia gang – some of them even send direct messages. A lot of people have lost a lot of credibility through their interaction with Mobster World and the direct messages it sends to their followers:

    Hey, I just added you to my Mafia family. You should accept my invitation! 🙂 Click here:

    Yikes.

Categories: Uncategorized

This Google Fusion looks interesting…

June 23, 2009 Leave a comment

Try this out…sharing caring fun with charts and graphs.

Categories: Uncategorized

Connecting into Technorati

June 12, 2009 Leave a comment

Technorati Profile

Categories: Uncategorized

Flickr

May 21, 2009 Leave a comment

This is a test post from flickr, a fancy photo sharing thing.

Categories: Uncategorized

The solution to all your woes – that’s if you are a GP and not a US taxpayer…

May 18, 2009 2 comments

Private equity: /
Are you looking for lev’rage? /
Well, just buy a bank! /

1 buy bank
2 use leverage to fund new deals
3 refinance underperforming portfolio companies
4 clean up if all goes swimmingly
5 sell toxic bank assets to taxpayers if not, clean up
6 high fives all round

Will you be the 1000th member?

May 10, 2009 1 comment

Private Equity and VC Funds Group on Linked In

Private Equity and VC Funds Group on Linked In


While I was approving new members to my Linked In groups this morning, I noticed that my first LinkedIn group is almost at 1,000 members. When I think of the modest expectations I had for it when I started it two months ago, I think that is quite a result!

Just in case you have been living in a cave for the last 5 years, LinkedIn is similar to Facebook, but is for business professionals rather than high school and university students.

The group is for private equity Limited Partners (LPs) and fundraising professionals (Placement Agents, Investor Relations teams at General Partners etc.) and anyone else involved or interested in this area.

  1. LPs will find one of the largest groups of Limited Partners on LinkedIn
  2. GPs will find LPs and professionals that can help them with their fundraising efforts
  3. Placement teams will find both of the above

Discussion topics in Haiku-form are, of course, particularly encouraged…
I look forward to welcoming you to the group!