Attracting institutional and family office investors can be a challenge for emerging private equity fund managers. To increase your chances for success, it’s important to understand who they are looking for, what characteristics they value, and the strategies they employ to make investing decisions.

Who are institutional and family office investors looking for?

Institutional and family office investors typically look for experienced fund managers who have strong track records and extensive networks. They seek out managers who are knowledgeable about the markets and who are well-versed in finance and investments. They may also be interested in those who have specialized experience in particular sectors or geographies.

A fund manager that is able to effectively define its investment strategy and promote its track record from prior experience will help in setting them apart from other experienced managers.

What characteristics are valued?

Institutional and family office investors typically value qualities such as trustworthiness, integrity, and strong communication skills. Investors also value qualities such as a careful attention to detail, long-term vision, and strong work ethic. Furthermore, they look for fund managers who have comprehensive risk management practices and demonstrate transparency.

Why are certain fund managers chosen?

Investors choose certain fund managers because they believe that the manager can deliver on their promises. They may also choose certain fund managers based on the track record of past performance, the depth of experience of the manager, and the investment historical returns they have achieved.

Strategies for fundraising

When planning a fundraising strategy, fund managers should focus on building relationships with potential investors. Start by building an initial list of prospective investors by researching the market and identifying potential targets. Consider investors such as family offices, venture capitalists, strategic corporate partners, and other private equity firms. Additionally, establish a presence on social media platforms, attend industry events, and network with peers who can provide introductions to potential investors. It’s also important for a fund manager to maintain a well-crafted pitch deck, which includes detailed information about the fund, its strategy, past performance, and potential returns.

With a better understanding of what investors are looking for, emerging private equity managers are able to position themselves to land funding and ultimately launch their fund. For more information, please reach out to Joseph Jordan at jjordan@citrincooperman.com or Alexander Reyes at areyes@citrincooperman.com.