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The New Rules for Investor Relations (Alternative Assets)

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The cycle of fundraise, fatigue, and repeat doesn’t work in today’s competitive environment. Relationships languish, potential leads who are open to subsequent raises lay fallow, and with each new raise managers find they start from square one. In this presentation, learn why fund managers need a systematic approach to engage with investors on an on-going basis, to shorten fundraising cycles and to build longer lasting partnerships with investors.

Topics will include:

- How to create an investor communication plan
- How to market when not marketing
- How to create a capital raising strategy

Published in: Marketing
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The New Rules for Investor Relations (Alternative Assets)

  1. 1. The New Rules for Investor Relations: KAP’sFundraising FlywheelTM
  2. 2. KAP Group provides services and products to private equity and real estate managers during the fundraising and investor relations process. KAP’s services are focused on making it easy for investors to invest with you.
  3. 3. Jen Hutter Liz Weiner Allan Siegert
  4. 4. Agenda ​01 ​02 ​03 ​04 ​05 ​ ​ ​ ​ ​
  5. 5. Introduction to KAP’s Fundraising Flywheel™
  6. 6. The State of Play Today, over 1,000 private equity managers and nearly 500 real estate managers are raising capital Private Equity (PE) and Real Estate (RE) Funds in the Market Over Time 812 920 1,153 1,192 466 478 451 492 + + + + +
  7. 7. The Investors’ Pipeline … and invests in 3 155
  8. 8. On The Road Again Managers spend an incredible amount of time on the road raising capital, at a HUGE opportunity cost 24% 30% 46% Breakdown of time on the road by RE funds in 2015 Average time in the market by RE estate funds
  9. 9. The Old Path The conventional way of raising capital – fundraise, fatigue, repeat – is tiresome, inefficient, and ineffective
  10. 10. Relationships, Relationships, Relationships Relationships remain the most critical part of capital raising 20% 26% 34% 36% 49% 61% Proportion of Respondents Methods Used by Institutional Investors to Source New RE Funds
  11. 11. A Different Approach It’s time for a different approach to fundraising
  12. 12. KAP’s Fundraising Flywheel™ Philosophy The Fundraising Flywheel is a systemic approach to engaging with investors on an on-going basis
  13. 13. KAP’s Fundraising Flywheel™ Philosophy KAP’s Fundraising FlywheelTM allows you to build loyalty among existing investors and to meet new prospects
  14. 14. Outline Your Communications Plan
  15. 15. KAP’s Fundraising Flywheel™ Philosophy KAP’s Fundraising FlywheelTM allows you to build loyalty among existing investors and to meet new prospects Outline your Communications Plan
  16. 16. With whom should you keep in touch?
  17. 17. Annual Meeting, Annual Letter Communication Timeline Have a systematic approach to reaching out to partners and prospects throughout the year Thank You Set Expectations Quarterly Report Acquisition Announcement Quarterly Report Quarterly Report Save-the-Date for Annual Meeting Disposition Announcement
  18. 18. Good News: We closed or sold a deal! Create a one page summary that describes the investment, sourcing, returns, and exit assumptions ​ ​ ​Resist the urge to send your investment committee memo ​
  19. 19. Bad News: Team Changes, Investment Level Changes Pick up the phone to deliver bad news to your partners; if it’s really bad news, get on a plane ​Departures. New Hires Investment Underperforming​It’s time to make a call
  20. 20. Market When Not Marketing
  21. 21. JOE FUND I JOE FUND MANAGER SALLY FUND MANAGER JOE FUND II JOE FUND III SALLY’S FUND IISALLY’S FUND I JOE’S FUND ASSETS SALLY’S FUND ASSETS Know your audience Investors are busy! Standout by building a relationship before you are raising capital. PORTFOLIOINVESTOR
  22. 22. KAP’s Fundraising Flywheel™ Philosophy KAP’s Fundraising FlywheelTM allows you to build loyalty among existing investors and to meet new prospects Market When Not Marketing
  23. 23. Developing Your Non-Marketing Presentation Prepare an impactful non-marketing presentation. Showcase your strengths both as an investor and an investment manager. Be transparent about the state of your firm.
  24. 24. The Plan of Attack Every investor meeting is the “big” meeting – make it impactful + + + + + +
  25. 25. Say Thank You and Follow Up
  26. 26. Create a Capital Raising Strategy
  27. 27. KAP’s Fundraising Flywheel™ Philosophy KAP’s Fundraising FlywheelTM allows you to build loyalty among existing investors and to meet new prospects Create a Capital Raising Strategy
  28. 28. Finding the Right Prospects Proactively seek out partners with whom your firm can grow + + + +
  29. 29. Technology is Your Friend Once you have a list of active prospects, leverage technology to track investor activity and log your dialogue with investors
  30. 30. ​ ​ ​ ​ ​100 Fillmore Street, 5th Floor Denver, Colorado 80206 ​303-500-3320

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