How to Navigate Gp-Lp Relationships

🤝 How to build high trust partnerships with LPs, as a GP Over the past two decades, new entrants to both the GP and LP ecosystem have made private markets feel increasingly crowded, and transactional in nature. This is a perception that you internalize at your peril. The reality is that, like a speech, even though you’re interacting sometimes with hundreds of investors, as a founder you are building a relationship with each investor individually – you’re trying to speak to each person, rather than the crowd. That relationship is built on trust, and service. While you will have systems and processes (that Ternion can help build) at a firm level, on an investor-by-investor level, focus on the following: 1️⃣ Provide what is requested, rather than what you want How would you react to being asked to provide a list of competitors? Perhaps a summary of the headwinds your sector will experience? It’s okay to reframe if you think there’s a better way to address the underlying motivation for the question, but make sure you don’t just say no. 2️⃣ Focus on the person, and understand their role When considering LPs, realize that not all are motivated in the same way. Family office principals and founders, for example, may be much more motivated by personal insights from the managing partner of a firm, compared to a VP at a global fund of funds, who may appreciate fast, transparent summaries of investments, quarterly reports and team changes. Take the time to understand who is asking the question, and what their priorities are. Making a plan to send regular industry updates to the investor who really values them distinguishes you. 3️⃣ Give value without expecting a return Related to the prior point, in a transactional environment, distinguish yourself by showing you know your investors and want to help them without expecting anything in return. A family office investor building exposure to a certain market sector may appreciate industry reports, your internal insights on a sector or even being told about conferences you’re attending. Show that your firm is an access point for that investor to receiving value beyond just a good return. 4️⃣ Show up when you’re least expected Off-cycle meetings and update calls, especially when you’re not fundraising, are central to good IR. Take time when conducting diligence on a potential new deal to meet with LPs, existing and new, and tell your story. Ask what they’re looking for and, whether or not they want to invest, how you can help them. 5️⃣ Say what you’re going to do, do it, tell them you did it. If you promise data, documents or updates in certain ways or at specific times, make sure you deliver on that promise. Nothing erodes trust faster than saying you’ll send a diligence response by March 1st, before being chased for an update in April. #investorrelations #alternatives #ir #privateequity #privatedebt #pe #vc #venturecapital #fundraising #capitalraising #gpseeding #gpstaking

Most Emerging Managers engage LPs the wrong way—here’s what actually works Too many GPs think LP engagement means pitching their fund the moment they get a meeting. 𝐓𝐡𝐚𝐭’𝐬 𝐰𝐡𝐲 𝐭𝐡𝐞𝐲 𝐬𝐭𝐫𝐮𝐠𝐠𝐥𝐞 𝐭𝐨 𝐫𝐚𝐢𝐬𝐞. Before LPs invest, they need two things: 1️⃣ 𝐄𝐝𝐮𝐜𝐚𝐭𝐢𝐨𝐧 LPs aren’t in the trenches of your market every day. They allocate across multiple asset classes and fund strategies, so before they even consider your fund, they need to understand: - What’s happening in the market that they might not see yet. What’s shifting? Where is capital flowing? What signals should they be paying attention to? - Why this opportunity is emerging now. What has changed that makes this a high-conviction bet today compared to 3 years ago or 3 years from now? - Where the gaps are that other funds aren’t addressing. They’ve seen similar theses before—what’s being overlooked? - How your experience gives you a differentiated lens on the space. Not just why you’re qualified, but how your position gives you an edge they can’t get elsewhere. 2️⃣ 𝐓𝐫𝐮𝐬𝐭 & 𝐑𝐞𝐥𝐚𝐭𝐢𝐨𝐧𝐬𝐡𝐢𝐩 𝐁𝐮𝐢𝐥𝐝𝐢𝐧𝐠 LPs don’t just back funds—they back managers they trust. And trust isn’t built through cold outreach, pitch decks, or one-off meetings. It’s built through consistent engagement and real value creation. So how do you build trust? 𝐁𝐲 𝐜𝐨𝐧𝐬𝐢𝐬𝐭𝐞𝐧𝐭𝐥𝐲 𝐜𝐫𝐞𝐚𝐭𝐢𝐧𝐠 𝐯𝐚𝐥𝐮𝐞 𝐟𝐨𝐫 𝐋𝐏𝐬 𝐛𝐞𝐲𝐨𝐧𝐝 𝐲𝐨𝐮𝐫 𝐟𝐮𝐧𝐝𝐫𝐚𝐢𝐬𝐞. I help GPs design engagement strategies that position them as the kind of manager LPs want to back—not just another pitch in their inbox. 𝐈𝐟 𝐲𝐨𝐮’𝐫𝐞 𝐬𝐞𝐫𝐢𝐨𝐮𝐬 𝐚𝐛𝐨𝐮𝐭 𝐛𝐮𝐢𝐥𝐝𝐢𝐧𝐠 𝐭𝐫𝐮𝐬𝐭 𝐰𝐢𝐭𝐡 𝐋𝐏𝐬 𝐭𝐡𝐞 𝐫𝐢𝐠𝐡𝐭 𝐰𝐚𝐲, 𝐃𝐌 𝐦𝐞.

💡"𝗜𝘁'𝘀 𝗻𝗼𝘁 𝗮 𝗻𝗼. 𝗜𝘁'𝘀 𝗮 𝗻𝗼𝘁 𝘆𝗲𝘁." That’s one of the most important mindset shifts for any emerging fund manager trying to build long-term LP relationships. Here’s what you should keep in mind: 📬 𝗣𝗮𝗰𝗲 𝗺𝗮𝘁𝘁𝗲𝗿𝘀. Follow up every ~3 to 6 months. Or whenever something meaningful has changed. Too frequent check-ins can be a little annoying and candidly, as someone with a fundraising timeline, the check-in cadence needs to be scalable. 📈 𝗦𝗵𝗼𝘄 𝘆𝗼𝘂𝗿 𝘁𝗵𝗶𝗻𝗸𝗶𝗻𝗴, 𝗻𝗼𝘁 𝗷𝘂𝘀𝘁 𝘆𝗼𝘂𝗿 𝘄𝗶𝗻𝘀. LPs want to see how you evolve. Don’t pretend you're perfect - explain what you learned, even when things didn’t go as planned. ☕ 𝗠𝗲𝗲𝘁 𝗶𝗻 𝗽𝗲𝗿𝘀𝗼𝗻 𝘄𝗵𝗲𝗻 𝘆𝗼𝘂 𝗰𝗮𝗻. If you happen to be in their city, reach out. Face-to-face builds more trust and even friendship with your potential LPs. 🧠 𝗛𝗲𝗹𝗽 𝘁𝗵𝗲𝗺 𝗴𝗲𝘁 𝘁𝗼 𝗸𝗻𝗼𝘄 𝗵𝗼𝘄 𝘆𝗼𝘂 𝘁𝗵𝗶𝗻𝗸. Share investment memos, co-investment opportunities, or ask their take on a deal. It shows you're interested in becoming a thought partner, not just a receipt of their capital. 🕰️ 𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱 𝘁𝗵𝗲𝗶𝗿 𝘁𝗶𝗺𝗲𝗹𝗶𝗻𝗲. Some LPs move slowly. Pushing for a fast answer often leads to a no. This is a 10+ year relationship! The GP-LP dynamic is a marathon, not a sprint. 𝗦𝗵𝗼𝘄 𝘂𝗽 𝘄𝗶𝘁𝗵 𝗰𝗼𝗻𝘀𝗶𝘀𝘁𝗲𝗻𝗰𝘆, 𝗵𝘂𝗺𝗶𝗹𝗶𝘁𝘆, 𝗮𝗻𝗱 𝗮 𝗹𝗼𝗻𝗴-𝘁𝗲𝗿𝗺 𝘃𝗶𝗲𝘄. If you're an emerging manager or an LP, what’s helped you nurture GP-LP relationships? #EmergingManagers #LPInsights #PrivateEquity

How to Foster Better Relationships with Investors: Are You Doing Enough? As a General Partner (GP) in real estate or private equity, your relationship with passive investors can make or break the success of your projects. 💭 But here's the key question: → Are you doing enough to foster trust and long-term collaboration with your investors? Building strong, lasting relationships with passive investors isn’t just about delivering solid returns—it’s about trust, transparency, and mutual respect. 📝 If you’re wondering how to go beyond the basics, here are some actionable ways to strengthen those vital connections: 1️⃣ Communicate Transparently—Even When Things Aren’t Perfect: Investors want to feel informed, especially when things don’t go according to plan. Open communication helps build credibility and trust. → Action Step: Make it a habit to update investors regularly, even if there’s a setback. When issues arise, be upfront about the challenges and how you're addressing them. 2️⃣ Align Your Interests with Their Goals: Passive investors want to know that you’re just as committed to the success of the project as they are. Show them you're invested in the outcome. → Action Step: Always co-invest in the deals you sponsor. By having skin in the game, you demonstrate your commitment to their financial success. 3️⃣ Set Clear Expectations and Deliver on Them: Fulfilling expectations is the foundation of trust. When you promise results, you must meet or exceed them. → Action Step: Clearly outline timelines, financial projections, and deliverables in advance. If adjustments are necessary, keep your investors in the loop and provide revised expectations. 4️⃣ Offer More Than Just Financial Returns: Investors often appreciate added value beyond returns—things like market insights or access to exclusive opportunities can deepen your relationship. → Action Step: Provide investors with valuable content, like market trend reports, or offer them early access to new investment opportunities. 5️⃣ Be Accountable—Own Your Results: Whether the project is a success or faces challenges, investors want to know you're taking full responsibility for managing their capital. → Action Step: Deliver regular, detailed reports on the project’s financials, and be transparent about any hurdles. Investors appreciate leaders who take accountability for their decisions. By going the extra mile to ensure clear communication, mutual alignment, and transparency, you'll create long-term partnerships built on trust. And when investors trust you, they’re more likely to invest with you again—and refer you to others. The real question is—are you doing enough to foster that kind of trust? Comment below your thought!👇 #InvestorRelationships #PassiveInvesting #RealEstateInvesting #PrivateEquity #GeneralPartnerTips #TrustAndTransparency #InvestorSuccess #BuildingTrust #LongTermPartnerships #FinancialFreedom #CommunicationMatters #InvestorAlignment #WealthBuilding