VIEWPOINTS
Tips from the Fundraising Trail
We want to share with you a few tips from our 20+ years of achieving success on the fundraising trail.
Pack a good map. In fundraising, this means planning up front to anticipate potential obstacles and how long the journey will take. Your map should include accurate readings on the likely timing and amounts of commitments from your existing LPs.
WHEN IS YOUR FIRST CLOSE?
Usually, your first close is challenging to predict.
Yet a lot rides on your first close as a signal of positive momentum to investors. A strong first closing can drive the rest of the fundraising. In sympathy with all the kids that have just finished their exams, we offer a short True/False quiz to test your First Closing knowledge:
WHAT’S YOUR TARGET FUND SIZE?
Determining the right number helps set your strategy.
You have many factors to consider when answering the question about your target fund size. What did you raise last time? How much interest did you turn away? At what pace have you been committing capital? What size allows you to stick to your strategy? What is your team’s capacity? Will you offer co-investment? How much can you raise without seeming greedy?
Do you offer co-investment?
Determining your approach to answering the question depends on which of the following categories best fits your fund.
Ah yes, co-investment (“COI” for short). This can feel like Question Number 1 from prospective LPs. In reality, LP opinion ranges from “I won’t commit to a new fund without COI,” to “We wish we could do COI but don’t have the resources,” to “We actively avoid funds with COI.”
We manage only a select number of assignments each year, ensuring our clients receive the highest level of service and dedication throughout the process.
Atlanta
3355 Lenox Road NE
Suite 805
Atlanta GA 30326
+1 404 869 4600
New York
757 Third Avenue
20th Floor
New York NY 10017
+1 212 235 1083
London
25–27 Heath Street
Suite 6
London
NW3 6TR
+44 20 3514 5421
Singapore
11 Collyer Quay
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Singapore 049317
SG +65 9037 0327
HK +852 8170 1464
Atlanta
3355 Lenox Road NE
Suite 805
Atlanta GA 30326
+1 404 869 4600
New York
757 Third Avenue
20th Floor
New York NY 10017
+1 212 235 1083
London
25–27 Heath Street
Suite 6
London
NW3 6TR
+44 20 3514 5421
Singapore