At the beginning of 2024, we suggested resolutions that private markets GPs could make to improve their investor relationships. Today, we turn our attention to 𝘂𝗽𝗴𝗿𝗮𝗱𝗶𝗻𝗴 𝗽𝗿𝗼𝗰𝗲𝘀𝘀𝗲𝘀 𝘁𝗼 𝗯𝗲 𝗺𝗼𝗿𝗲 𝗿𝗲𝘀𝗽𝗼𝗻𝘀𝗶𝘃𝗲 𝘁𝗼 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿 𝗿𝗲𝗾𝘂𝗲𝘀𝘁𝘀. Preparation can help you deliver a best-in-class experience to your LPs:
𝟭. 𝗦𝘁𝗿𝗲𝗮𝗺𝗹𝗶𝗻𝗲 𝘆𝗼𝘂𝗿 𝗽𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝗰𝗼𝗺𝗽𝗮𝗻𝘆 𝗱𝗮𝘁𝗮 by collecting it in a single spreadsheet. This will allow investor inquiries to be answered more quickly. Many of the buyout and growth equity GPs we work with utilize the Institutional Limited Partners Association (ILPA) Portfolio Company Metrics template as a starting point. Work with your investment and finance team to make sure that the data is updated quarterly and accessible to everyone responding to LP queries.
𝟮. 𝗕𝘂𝗶𝗹𝗱 𝗮 𝗿𝗼𝗯𝘂𝘀𝘁 𝗱𝗮𝘁𝗮 𝗿𝗼𝗼𝗺 𝘁𝗼 𝗽𝗿𝗲𝗲𝗺𝗽𝘁𝗶𝘃𝗲𝗹𝘆 𝗮𝗱𝗱𝗿𝗲𝘀𝘀 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻𝘀. This includes a detailed DDQ that covers most of what LPs have in their own DDQ templates. Including a robust selection of portfolio- and performance-related documents can preempt many investor questions. Take care to name all data room documents in the most obvious way possible. The data and documents are only useful if the investors can actually find them!
𝟯. For your existing LPs, make their lives easier with a 𝗰𝗼𝗺𝗽𝗿𝗲𝗵𝗲𝗻𝘀𝗶𝘃𝗲 𝗮𝗻𝗱 𝗲𝗮𝘀𝗶𝗹𝘆 𝗮𝗰𝗰𝗲𝘀𝘀𝗶𝗯𝗹𝗲 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿 𝗽𝗼𝗿𝘁𝗮𝗹. You can consolidate all reporting, announcements, notifications, and relevant portfolio company information here. Ad hoc information requests should become less frequent (and therefore less time-consuming) as LPs become accustomed to the thorough and relevant information you are posting.
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