Private Equity Fund Raising Deals

Private equity fund raising deals can be a challenging (but essential) component of establishing a new investment firm. To find LPs and reach your goals, you must increase the reach of your network. This requires careful relationship management using the right techniques and tools.

LPs are investors who contribute capital to an equity fund that is private. They are typically large institutional investors, like pension funds, endowments, and mutual funds. In other cases, they are high-net-worth individuals or family offices seeking an investment return in the form of a private equity fund. In addition there are a few LPs are funds-offunds that have the resources to invest in a range of private equity funds. They are able to assist you in building a diverse portfolio of alternative investments.

To be a qualified LP, you must meet certain criteria. Generally, LPs require an investment strategy that aligns with yours, a track-record with a similar approach, and the commitment to invest. They also require you to have a thorough understanding of how your fund works and be able to articulate why it is worth investing in.

To make the most of your LP relationships It is a good idea to have your legal team write your partnership memorandum, offering terms and subscription agreement prior to the time you actively seek out potential LPs. It’s also a good thing to review your internal capacities in investor relations and to consider hiring an agent to place your offer.

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