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Learn The New Rules of Private Equity Fundraising
- 1. The New Rules of Private Equity Fundraising For more, visit www.privcap.com
- 2. Based off Privcap’s Exclusive BrieBing
- 3. In this slideshow: • Is fundraising getting easier or harder? • Who has to be more insightful: LPs or GPs? • How do investments change over time? • How can cash-‐on-‐cash help valuations? • Why does the GP model have to evolve?
- 4. GPs Must Work Twice As Hard to Raise Half as Much fundraise.” “If you’re going to raise about $3.5 billion, there are basically 20 investors globally that will constitute the main portion of that. If those 20 don’t common-‐rate your number-‐one core holding, you have gaps. And the only way to Bill them—because there is a lack of other mega-‐investors is by going to a broader list. And that completely changes the topography and the dynamic of the fundraise.” -‐ Mounir Guen, MVision Watch video | Read full report Share this slideshow
- 5. GPs Must Demonstrate Deep Insight “From a due-‐diligence point of view, it is the challenge of the limited partners to verify that,” he said, “to understand what those operating skills are, and how and if they add value. Because, like proprietary deal Blow, operating skills can be elusive.” -‐ Russ Steenberg, Blackrock Private Equity Advisers Watch video | Read full report Share this slideshow
- 6. Your Next Fund Will Be Different From Your Last Fund “We’re seeing investors showing up with lists and saying, ‘You’re not going to get to the Birst close without us. This is our list of conditions of what your business will look like. We don’t want you in the fundraise more than 12 months or even nine months. If you don’t make your marker in terms of what you’re trying to raise, we’re Bine with that, but we also want a minimum amount, and we want to understand what your business looks like at that point, in terms of how you’ll run it if you don’t hit your target.” -‐ Mounir Guen, MVision Watch video | Read full report Share this slideshow
- 7. Cash-‐on-‐Cash Has Maximum Cachet “The beautiful thing about cash-‐on-‐cash is we can all understand it. It’s a full-‐cycle measure of how an investment has performed. It takes away the complexity of trying to wrestle with valuation issues, the impacts that time can have on IRRs with relatively short hold periods. Being able to demonstrate that you’ve bought a company as planned, developed the company as you planned, and were able to successfully exit that for cash is really the full cycle that we’re all looking to understand.” -‐John Greenwood, Pantheon Ventures Watch video | Read full report Share this slideshow
- 8. LP “InBluencers” Are More InBluential Than Ever “The GP model has had to evolve to meet the intricacies of the world, “and where you’re seeing it the most is on transparency and communication and in dealing with a limited-‐partner base. In the old days it was, ‘Give me the money and go away for 10 years. I’ll just send it all back to you.’ Those days are long, long gone, because you have to stay right on top with this constituency group so that you can maintain that re-‐up rate.” -‐ Russ Steenberg, Blackrock Private Equity Advisers Watch video | Read full report Share this slideshow
- 9. For more private equity video interviews, special reports and commentary, visit www.privcap.com Share this slideshow