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Posts Tagged ‘manager selection’

More than a big deal? What GPs think worth communicating

May 25, 2010 Leave a comment

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Chart showing how dealflow affects the marketing output at European buyout and growth capital firms

Relationship between dealflow and marketing output

I recently wrote a short piece on GP communications and transparency that looked at quite how open private equity fund managers in Europe really are. Not as open as they could be? Definitely. Not as open as they should be? Without doubt. Well, European GPs are communicating with the market, even if some don’t welcome inbound enquiries in quite the way they might. But what are they communicating?

Well, the IE Consulting team and I read through almost 700 press releases from European buyout and growth capital investors (2006-2010) so you don’t have to. And the results of our research are summarised in an article in this month’s Private Equity Europe:

More Than a Big Deal?

I think GPs are so focussed on announcing their transactions that they are neglecting the opportunities they have to communicate everything else they – and their portfolio companies – do. But what do you think? Please let me know, below!

Why should I invest in your fund?

May 8, 2009 1 comment

I’ve been thinking recently how successful fundraisers stand out and I keep coming back to the importance of clarity and focus. If an LP is to invest, the following must be explicitly established:

    1.This market represents a great opportunity, right now and for a considerable time;
    2.This strategy is the most suited to exploiting that opportunity;
    3.This manager is the most able to successfully execute that strategy.

I thought this was so central to the selection process that I even drew a diagram to illustrate it:

The three things you must demonstrate for your fund to be successful

The three things you must demonstrate for your fund to be successful

With legally required disclaimers the only exception, I believe these are the first three ideas an LP should see when opening any fundraising materials. These three concepts should inform the content throughout. And that includes the cover.