How can you maintain a positive relationship with LPs after negotiations?

Regular, candid communication keeps LPs abreast of fund performance and strategic changes, laying a foundation of trust. Fulfilling promises from negotiations is critical to credibility, while actively involving LPs in decision-making and seeking feedback cultivates a sense of shared ownership and respect. Providing exclusive investment opportunities and celebrating shared successes appreciates LPs' commitment and deepens their engagement. Regular interactive sessions offer platforms for continuous dialogue while promptly addressing issues, which signifies a proactive stance toward safeguarding their interests. These strategies, underscored by honesty and a commitment to shared success, support robust, positive relationships with LPs.

Effective communication with LPs is crucial beyond the negotiation phase. It's about transparency, keeping them in the loop with regular updates on fund performance and strategic decisions. This approach not only demonstrates our commitment to their interests but also fosters a strong, trust-based relationship. From my experience, LPs appreciate insights into our market perspective and value creation initiatives, and engaging them for feedback reinforces our alignment. It's a practice that has consistently proven to enhance investor relations.

I would apply the four pillars of integrity which are: Honest Respect Responsibility Fairness However I expect also the same from the LPs

One of the key relationship words in these times between Private Equity investment firms and LP's is... #humility What does this mean exactly? It is a word the denotes a PE firm's interest and willingness to show respect and appreciation of a portfolio company's leadership while at the same time developing the right ways to communicate how change needs to happen in order to drive value up. It's a delicate balance of adding insight while at the same time demonstrating that you are open to seeing the intelligence of the company that' you acquired. Humility doesn't mean subservience; it means parity and sharing.

It would be really helpful and support the development of a favorable partnership between LP's and PE firms if there is openness in sharing of challenges happening at the firm level. Once an acquisition has completed, the need for trust-building is greater than ever. No one likes unpleasant surprises. How to establish this transparency and honest stems from the top leaders of both the acquired company (LP) and the PE firm. Together, this degree of transparency will be set and establishes the groundwork for the future of the relationship and success potential for all.

PE is a small community. If you want to stay relevant and trusted, you need to stand by your word. Set milestones are often ambitious and require tough decisions. These agreed milestones need to be prioritized. If meeting these targets is in jeopardy, it takes a swift, candid and open discussion on the remaining options.

(a) Schedule periodic meetings with LPs to discuss their concerns and expectations. Actively seek feedback on the partnership and address any issues promptly. Incorporating LP feedback improved our working relationship (b) Extend value beyond financial returns by providing non-financial support. Help LPs with networking, industry insights, and strategic guidance. Offering market intelligence helped LPs make informed decisions (c) Emphasise the long-term nature of the partnership. Demonstrate a commitment to achieving sustained success together. A long-term perspective solidified LPs' trust in our partnership.

(a) Offer educational workshops or seminars on investment topics. This helps LPs deepen their understanding of the market and your strategies. Providing opportunities for LPs to expand their knowledge demonstrates your commitment to their growth and can enhance the relationship (b) Align your fund's goals with the long-term objectives of LPs. Show how your investment strategies are designed to deliver sustainable returns over time. Demonstrating a shared vision for long-term success reinforces LPs' commitment and trust in your partnership.