What are the best ways to build and maintain relationships with intermediaries in Private Equity?

1 Identify the right intermediaries

The first step is to identify the intermediaries that are relevant and active in your target sectors, geographies, and deal sizes. You can use various sources, such as databases, industry associations, trade publications, and referrals, to find and screen potential intermediaries. You should also prioritize the ones that have a track record of closing deals, a strong network of contacts, and a good reputation in the market.

2 Reach out and introduce yourself

The next step is to reach out and introduce yourself to the intermediaries that you have identified. You should tailor your communication to each intermediary, highlighting your value proposition, investment criteria, and relevant experience. You should also express your interest in working with them and request a meeting or a call to discuss further. You should aim to be concise, professional, and respectful in your outreach.

3 Build trust and rapport

The third step is to build trust and rapport with the intermediaries that you have reached out to. You should follow up regularly, provide feedback, and update them on your activities and preferences. You should also demonstrate your credibility, expertise, and commitment by showing your track record, sharing your insights, and being responsive and transparent. You should also seek to understand their needs, motivations, and expectations, and align your interests and goals.

4 Add value and differentiate yourself

The fourth step is to add value and differentiate yourself from other PE firms that are competing for the same deals. You should show your enthusiasm, curiosity, and creativity by asking relevant questions, sharing your perspectives, and suggesting ideas. You should also showcase your capabilities, resources, and network by offering your support, referrals, and introductions. You should also highlight your unique selling points, such as your sector focus, operational expertise, or social impact.

5 Maintain and nurture the relationship

The fifth step is to maintain and nurture the relationship with the intermediaries that you have built trust and rapport with. You should keep in touch regularly, not only when you are looking for deals, but also when you are not. You should also acknowledge their efforts, appreciate their contributions, and reward their performance. You should also seek feedback, address issues, and resolve conflicts. You should also celebrate successes, share stories, and have fun.

6 Expand and leverage the relationship

The final step is to expand and leverage the relationship with the intermediaries that you have added value and differentiated yourself with. You should ask for referrals, recommendations, and testimonials from them to access new opportunities, contacts, and information. You should also collaborate, co-invest, or partner with them on deals that are mutually beneficial. You should also promote, endorse, or advocate for them in the market to enhance their reputation and visibility.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?