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

1. The New Rules for
Investor Relations:
KAP’sFundraising
FlywheelTM

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. Jen Hutter Liz Weiner Allan Siegert

4. Agenda
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5. Introduction to KAP’s
Fundraising Flywheel™

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
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7. The Investors’
Pipeline
… and invests in 3
155

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. The Old Path
The conventional way of raising
capital – fundraise, fatigue, repeat
– is tiresome, inefficient, and
ineffective

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. A Different
Approach
It’s time for a different approach to fundraising

12. KAP’s
Fundraising
Flywheel™
Philosophy
The Fundraising Flywheel is a
systemic approach to engaging
with investors on an on-going basis

13. KAP’s
Fundraising
Flywheel™
Philosophy
KAP’s Fundraising FlywheelTM allows you to build
loyalty among existing investors and to meet new
prospects

14. Outline Your
Communications Plan

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. With whom
should you keep
in touch?

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. 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. 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. Market When Not
Marketing

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. 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. 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. The Plan of
Attack
Every investor meeting is the “big” meeting – make it
impactful
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25. Say Thank You
and Follow Up

26. Create a Capital Raising
Strategy

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. Finding the Right
Prospects
Proactively seek out partners with whom your firm can
grow
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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

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​100 Fillmore Street, 5th Floor
Denver, Colorado 80206
​303-500-3320