Transparency is key when market shifts challenge fund stability. Regular updates—detailing market trends, fund performance, and strategic adjustments—build trust. Host interactive sessions to address LP concerns and highlight long-term resilience. Sharing a clear risk management plan reassures partners of your commitment to protecting their interests. Open, honest communication turns uncertainty into an opportunity to strengthen relationships.

Serve up regular updates straight facts on trends, performance, and your next moves. Get LPs in the room , let them air their concerns, and show them you’ve got a plan that goes the distance. Risk management isn’t optional; it’s the pitch they need to hear. Keep it honest, keep it clear. Turning chaos into confidence is how you build relationships that last.

To keep limited partners informed during market shifts, provide regular updates through quarterly or monthly reports that outline performance and market impacts. Use transparent communication such as conference calls or webinars to discuss changes and adjustments to the fund’s strategy. Include data-driven insights to demonstrate how the fund is managing risks and capitalizing on opportunities. Offer personalized communication for key partners and ensure consistent updates to build confidence. Focus on strategic adjustments and long-term goals to reassure investors that the fund is navigating market changes effectively and with foresight.

We do quarterly updates. The good, the bad, the wins and the losses. For the challenges, we always include: how did this happen, and what steps we are taking. When we are writing the next update, we review the last one. I don't like the suggestion of doing one-on-one calls. It is messy, time consuming, and can lead to misinterpretations. If necessary, have a call, 1, 2, or 3 times to allow for all to participate. I wouldn't record the call and I wouldn't turn on AI summarizers, but I would list the topics discussed. In situations of high volatility it isn't practical to have updates all the time, as the situation can change dramatically from one day to another and our time is best utilized supporting the portfolio companies.

There are three types of communication - regular (quarterly), ad hoc (usually around deals and exits) and reactive (mostly around something bad). Most firms do the first two well enough, but the best transform the reactive into proactive, before things are REALLY bad. LPs appreciate an early signal once you see it. It's bringing them inside the curtain and engenders trust, rather than just dropping a bomb after things are beyond repair.

In times of market shifts, keeping limited partners informed is critical to maintaining trust and stability. Regular, transparent communication through detailed reports and updates is essential. I would provide an overview of the market landscape, outlining the impact on our portfolio, including both challenges and opportunities. Sharing strategic adjustments and risk mitigation plans reassures partners that we are actively managing the situation. Additionally, hosting periodic calls or meetings allows for direct engagement, addressing concerns and discussing future strategies to navigate volatility.

When Markets Shake, Trust Holds Your fund’s stability is under pressure, and your LPs feel it too. Silence? It’s the fastest way to lose trust. A bold move instead: over-communicate. You pick up the phone before they do. “Here’s what’s happening, here’s how we’re adapting.” Suddenly, it’s not just numbers, it’s shared strategy. One LP once said, “Your honesty kept me invested.” True connection isn’t in perfect returns but in real conversations when turbulence hits.

Personalised outreach is something I also prioritise- LPs appreciate a direct line to discuss concerns. It’s about creating an ongoing dialogue, not just sending reports. Keeping them in the loop helps build confidence and shows you’re actively managing the situation.