Best Practices for Keeping in Touch Between Fundraises

Based on a series of interviews held in May 2024 with 11 senior institutional and private wealth allocators (CIOs and strategy heads) and a former allocator turned marketer. Contributors represent a cross section of corporate and public pensions, private wealth, endowment, foundation, family office, healthcare & insurance.

“When you’re not fundraising, that is when the most impactful conversations happen.” ~ Chief Investment Officer, Healthcare

“A marketer isn’t just a salesperson. They’re a valuable resource to us. Our eyes and ears. The best offer a broad market perspective and serve as good connectors. I look at our best partners almost as an extension of our team.” ~ Chief Investment Officer, Insurance

Quick context:

Following the recent publication of AMA #14: How to Differentiate, several marketing and investor relations professionals suggested a deeper dive into how to best keep in touch between fundraises.

The 7 best practice themes that emerged during my conversations (mostly) apply to whether an LP is a current or prospective investor and whether capital flows are paused on the LP side and/or managers are not actively fundraising.

We will explore those themes here, with as much specificity as possible while maintaining the confidentiality of contributors.

First, I want to highlight a theme that emerged beyond the scope of best practices: empathy among the LPs towards marketers.

To be honest, I was surprised by the degree to which contributors (proactively) expressed a high degree of empathy and genuine regard for (most) client-facing professionals.

“I have a lot of empathy for these folks. Just getting our attention is incredibly hard. I hate to say it, but all that really matters is performance and they have so little control over that. There is no clear path to victory.” ~ Chief Investment Officer, Public Pension

“The people I get to meet and the exchange of ideas are my favorite parts of my job.”

~ Sector Head, Credit, Corporate Pension

“I feel a lot of empathy for the marketers under pressure to raise money vs. build a brand. This pressure makes it hard for them to operate in a more consultative and value-added way, beyond dollars. Sometimes it’s a resources issue, but often it’s the short-term mindset and lack of patience of firm leadership.”

~ Chief Investment Officer, Insurance

Best practice themes:

1.?????? Provide thoughtful off-cycle communication outside of AGMs

2.?????? Be proactive / avoid surprises

3.?????? Offer creative, value-added content

4.?????? Differentiate (in a positive way)

5.?????? Operate with high integrity

6.?????? Provide access

7.?????? Understand and respect time constraints

?

Provide thoughtful off-cycle communication outside of AGMs

When asked how their current GPs are doing regarding keeping in touch between fundraises, contributors expressed a wide range of satisfaction levels. ?

“GPs don’t do a great job of keeping their own LPs up to date. Only 1/3 of managers do this well. It seems to be more of a pull than push.”

~ Director of Investments, Endowment

“The reality, at least for us, is that we don’t hear from them virtually at all. It feels very episodic. From an LP’s perspective, you really want to hear what is going on when they’re out of the market. If you look at the gestation of the fund, communication is actually more important during the investing and harvesting period vs. during fundraising.”

~ Chief Investment Officer, Private Wealth

“We work with brand names who have excellent people; our GPs are doing very well with communication. They walk a good line between providing great client service and not overdoing it. In my view, only the consultants are a bit too relaxed.”

~ Chief Investment Officer, Public Pension

“GPs have gotten too comfortable leveraging technology post Covid. Group Zoom updates are far less valuable than personalized catch up calls and visits. Though some of our managers offer exceptional client service, personalization seems to be going the way of the history books even though it’s in the best interest of both sides. Often, we need to do a healthy amount of catch up in order to feel comfortable committing additional capital. Personalization speeds this process.”

~ Sector Head, Private Investments, Foundation

“Blast emails don’t land well; I can tell when something comes in from a mail server.”

~ Sector Head, Private Investments, Foundation

?

Beyond the AGM:

“The right cadence is typically more than your typical GP would feel comfortable with. We appreciate smaller firms are particularly resource constrained, but there is such an opportunity to educate, especially in wealth.”

~ Chief Investment Officer, Private Wealth

?

“It would be helpful to add a private conversation where we could cover topics that managers are understandably hesitant to discuss in an open forum. For example, what is going on with the team, thoughts on deals they missed out on, what isn’t going well generally and their plans to turn things around.”

~ Director of Investments, Endowment

?

“The ideal cadence could be 1-2 off-cycle Zoom or in person meetings per year. I am agnostic to the format. It’s a balance between GPs staying focused on investing and carving out a little bit of time outside of the AGM. We try and do a call with our managers every six months at minimum.”

~ Sector Head, Credit, Corporate Pension?

?

“I love it when updates (whether annual or quarterly) include a set of bullet points I can utilize. It also doesn’t need to be a long letter. I appreciate these things take time to pull together and there isn’t always something to say. I would rather the PM stay focused on running the money vs. being holed up for four days on this.”

~ Chief Investment Officer, Family Office

?

Be proactive / avoid surprises

Literally every LP interviewed offered some version of the subset of quotes below:

“I need to hear when something event related has happened. A quick note is appreciated, even if it’s short, so I am prepared when asked. Otherwise, I am caught flat footed. Marketers should anticipate questions LPs will get, especially if the topic is disappointing results. Emails are easier as I am not always reachable.”

~ Chief Investment Officer, Family Office

?

“I am unhappy with most GPs on this. Don’t surprise me. I don’t want to get a letter that I have to then explain to a board member with six hours’ notice.” ~ Chief Investment Officer, Insurance

?

“Most do it well but not all. GPs should be transparent throughout; I shouldn’t be finding out if things are on track when it’s time to re-up. Generally, a proactive approach lands really well, even if it’s bad news.”

~ Chief Investment Officer, Public Pension

?

“IR staff at GPs in general should keep in mind that bad news (a significant departure or write-off for instance) should travel fast and be communicated by the GP and not another source.”

~ Director of Investments, Endowment

?

“Be very up front about key personnel changes. Be prompt and transparent. It’s too easy to lose trust. The story we often get about a departing employee is they weren’t really contributing. This feels like an attempt to minimize the loss.”

~Chief Investment Officer, Public Pension

?

Offer creative, value-added content

This one is trickier, as every LP acknowledged their own unique interests and preferred format.

“Everyone is so different. Some members of my team enjoy getting small video clips. But I never click on them; my preference is PDF. It’s a very personal thing what resonates.”

~ Chief Investment Officer, Public Pension

?

“Putting together small groups of other allocators navigating similar challenges and facilitating discussion is great.”

~ Chief Investment Officer, Private Wealth

?

“It’s a lot to coordinate, but it’s helpful when GPs can facilitate small groups getting together or host side events at conferences. I enjoy spending time with other LPs, taking their temperature on what they’re focusing on and what they’re not.”

~ Sector Head, Private Investments, Foundation

?

“For me personally, showing that they know my business and what is happening in the world that might impact my business is a big differentiator. A two pager is great. Something like “here is what is happening in the regulatory environment and here is how it could impact you.” I may not respond, but I’ve likely read it.”

~ Chief Investment Officer, Insurance

?

“Venture is doing a particularly great job delivering content creatively and in a digestible way through really interesting podcasts and white papers.”

~ Director of Investments, Endowments

?

“I especially appreciate how larger groups pull from across the firm. They’re great at leveraging information flow and connectivity across the organization in service of LPs.”

~ Sector Head, Private Investments, Foundation

?

“Notes describing opportunities to invest alongside boutique managers are also eagerly opened.”

~ Sector Head, Private Investments, Foundation

?

“The person who flags new developments with me (for example, new asset types, new structures) and offers to educate me about them has a wild first mover advantage.”

~ Chief Investment Officer, Insurance

?

“The larger managers are good about hosting webinars at a regular cadence. It helps elevate a manager in my mind when they host a webinar that offers broader market context and isn’t 100% focused on their own portfolio.”

~ Director of Investments, Healthcare

?

“I appreciate updates about what is going on within the different verticals. Even if we are not invested in that specific fund, getting that perspective helps us understand how the manager is navigating the macro environment. It’s best to get educated in real time rather than during a fundraising period. This lands as real relationship building.”

~ Chief Investment Officer, Private Wealth

?

“Case studies on a certain portfolio company are helpful for folks to understand how to diligence a fund more broadly. Managers should feel free to use this to highlight their funds; it’s a good opportunity for them to tell their story and get their brand in front of allocators in between fundraises, especially if they have a good track record.”

~ Chief Investment Officer, Private Wealth

?

“The best take an informed view. They distill down market consensus with a pithy narrative.”

~ Director of Investments, Endowment

?

“Learning and (LP) peer contact are the most value-added resources our GPs can offer during periods where the firm is between fundraises. The GP who is best at this offers non-stop learning opportunities, macro pieces and really useful events that bring together peer allocators. I particularly appreciate an hour spent in a heavy material / think tank format vs. six hours of golf.”

~ Chief Investment Officer, Public Pension

?

“I value access to thought leaders around topics of interest such as geopolitics and total return approach vs. traditional asset class bucketing. I also appreciate invites to speak at roundtables on topics I am interested in; I view this as an opportunity to give back and hone my skills.”

~ Chief Investment Officer, Public Pension

?

Differentiate (in a positive way)

In AMA #14: How to Differentiate I wrote about best and worst practices of marketers from the LP perspective. At the time, it felt risky to be perceived as stating the obvious and not value-added on my part! But I’ve heard enough stories at this point to appreciate common knowledge isn’t always common practice.

Here are a handful of additional rookie mistakes and best practice suggestions that came up during this most recent round of conversations.

Rookie Mistakes:

“Play the long game. “Always be closing” is the worst approach.”

~ Chief Investment Officer, Insurance

?

“Cold outreach on LinkedIn lands badly with me. It’s very impersonal and comes across as very presumptuous to drop a presentation in to a LinkedIn message.”

~ Chief Investment Officer, Public Pension

?

“Sometimes the timing is interesting. There is a weird coincidence - when there is a bad month, communication is delayed, but when it’s a good month, communication is timely. This happens in strategies that aren’t even really that complicated. It lands badly.”

~ Chief Investment Officer, Family Office

?

“We are based in a very remote area of the country. No one ever has a reason to be here. And yet, marketers say they happen to be coming to town. Which is obviously not true.”

~ Chief Investment Officer, Public Pension

?

“I once had a guy say to me, “if we don’t have it, you don’t need it” which was utterly ridiculous and useless. It immediately put him in the category of used car salesman.”

~ Former Chief Investment Officer, Public Pension

?

“One of my biggest gripes is when firms conflate projected returns and holding value. Real estate is the worst at this, showing their newest deals alongside projected returns. These should be separate columns. Offer both, but don’t conflate the two.”

~Director of Investments, Endowment

?

“I have a lot of respect for marketers and appreciate they’re under a lot of pressure. But it’s confusing because they send me an email every other week when it’s not a product I’m looking for. I am acting as a fiduciary. They’re not going to talk me in to it.”

~ Chief Investment Officer, Family Office

?

“Don’t use the period in between fundraises to promote the firm’s other capabilities. I find this distracting and a waste of time. We would approach them if we had interest.”

~ Chief Investment Officer, Public Pension

?

“Emails along the lines of “let me know if I can be helpful” aren’t as good as offering a specific way to help or at least offering to jump on a call to talk about companies, pipeline, market insights or something specific.”

~ Director of Investments, Healthcare

?

“Those that are too aggressive or transactional will burn out the relationship. They follow up too much. Their style and energy are just off-putting.”

~Chief Investment Officer, Public Pension Fund

?

“If I say I need X and you only have Y, don’t try and jam a square peg into a round hole. Don’t pretend.”

~ Sector Head, Credit, Corporate Pension

?

Opportunities to differentiate:

“The greatest skill in marketing and investor relations is listening. Full stop.”

~ Sector Head, Credit, Corporate Pension

?

“A lot of this comes down to developing solid listening skills and mastering the art of adjusting based on the individual LP. The first step is really understanding what my business is. This step can’t be skipped.”

~ Sector Head, Private Investments, Endowment

?

“The best marketers have a great balance of high IQ and EQ. They’re great listeners.”

~Sector Head, Credit, Corporate Pension

?

“All of the decks are the same. I could create one in my head. They’re boilerplate. I especially don’t need to see another picture of a funnel. And they’re almost all too long. A handful of managers have figured out how to create a short, impactful deck. 9-10 pages vs. 40. I’m more likely to read those.”

~ Chief Investment Officer, Family Office

?

“Be prepared in the meeting. You can just tell when someone is really ready.”

~ Sector Head, Credit, Corporate Pension

?

“Who gets my attention? Those who have done their homework on our portfolio. Who references things we’ve said publicly. Who shows me they are following our initiatives. They’re viewed as potential partners who could be more thoughtful vs. others who are sending out product information and hoping…..”

~ Chief Investment Officer, Public Pension

?

“Personalization is a big differentiator. I preferred short reads with a personal element. Even if I send the same piece to 20 LPs, each one is personalized.”

~ Former Chief Investment Officer, Public Pension

?

“Our best relationships were with marketers we felt had an alignment of interests with us. Between fundraises, they maintained a personal connection as well as awareness about what we were doing. They kept providing us with directly relevant industry or sector related content.”

~ Former Chief Investment Officer, Public Pension

?

“Especially in private credit there are a lot of new entrants. They’re a dime a dozen and many are late to the game, competing in a race to the bottom on fees. What I really want is the track record, credibility, and a good team.”

~ Sector Head, Credit, Corporate Pension

?

?Operate with high integrity

“Does the story match what you pitched? It’s happened a few times recently where the GP’s pitchbooks don’t match the reality. It kills trust, to overpromise and underdeliver.”

~ Sector Head, Corporate Pension

?

“It’s memorable when a marketer is transparent about what their firm is great at and what they’re not. Those that suggest better options, even if it’s a competitor fund, demonstrate a high level of integrity. Those that disparage competitors do not.”

~Former Chief Investment Officer, Public Pension

?

“Be good people. I really shouldn’t have to say that. Honor your word.”

~ Chief Investment Officer, Insurance

?

“I can tell when a marketer genuinely feels passionate about their product. I want to say, “if you don’t believe in it why should I?” The best make their case in a collegial and sincere way. They can’t fake it.”

~ Sector Head, Credit, Corporate Pension

?

“The greatest risk we have is behavioral finance risk. So, we look for consistency, integrity, reliability, and alignment of interests in these relationships.”

~ Sector Head, Credit, Corporate Pension

?

Provide Access

“LPs want to speak to a deal partner; it doesn’t need to be a managing partner. Funds should invite IR professionals to every IC meeting and require them to read the memos.”

~ Director of Investments, Endowment

?

“I value access to hearing from gurus, thought leaders and strategists. Geopolitics is of key interest currently. These opportunities tend to be very well received internally.”

~ Chief Investment Officer, Public Pension

?

?“My preference is to speak to a deal partner right out of the gate. There is more to the strategy than just the pitch deck. I want to hear about the history and genesis of the firm, what risks keep them up at night, how they are looking to execute on value creation, potential exit horizon, thoughts on early liquidity, what potential buyers exist, pipeline deals…..if the marketer can only go one later deep, I view them a just a gatekeeper.”

~ Director of Investments, Endowment

?

Understand and respect time constraints

“The greatest commodity we have isn’t capital, it’s time.”

~ Sector Head, Credit, Corporate Pension

?

“I’m getting 10 emails a day, 70 a week, and I am notoriously difficult to reach. My team is receiving far more. They feel like they’re on a constant treadmill of re-ups and fundraises. It’s unmanageable.”

~ Chief Investment Officer, Public Pension?

?

“I get around 170 emails per day, with 30-40 related to funds. I am constantly deleting, blocking, and unsubscribing.”

~ Sector Head, Private Investments, Foundation

?

“There is such an abundance of information out there. Anyone who can help me sift through this and who knows what is important to me is someone I will make time for.”

~ Chief Investment Officer, Private Wealth

?

“Please don’t ask for 30 minutes of time without demonstrating a really good rational for that ask. Simply updating me on performance doesn’t qualify.”

~ Chief Investment Officer, Private Wealth

?

“Someone once asked me for a two-hour initial meeting with multiple members of the team. It showed an utter lack of awareness.”

?~ Chief Investment Officer, Public Pension

?

“Our time is really limited regarding in-person meetings. We would also like to spend time with the PMs rather than accept coffee invites from marketers who happen to be coming to town.”

~ Chief Investment Officer, Family Office

?

“It’s not uncommon for LPs to get added to a quarterly update distribution list. If they’re reporting content for content’s sake, and it’s not good, it’s just taking up space in my inbox.”

~ Director of Investments, Endowment

?

“I just don’t have time to write 25 “sorry not interested” emails a day. I would love to. I feel guilty ignoring / ghosting, but there is just too much coming in. But those short decks that get straight to the point are appreciated.”

~ Chief Investment Officer, Family Office

?

“These guys (LPs) are drinking out of a firehouse. They’re greatly understaffed. Marketers who offered valuable perspective, even if the content was from a competitor, kept me from having to sift through hundreds of emails.”

~ Former Chief Investment Officer, Public Pension

?

“How much of my email is deleted? Unfortunately, most of it. I hope most realize it’s not personal.”

~ Chief Investment Officer, Public Pension

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About Willow Hill Advisors

Laurie Thompson founded Willow Hill in September 2019 after spending 16 years in the financial services practice of Heidrick & Struggles.

She has placed fundraising and investor relations professionals from the Partner, Head of Global Distribution level through Associate, with a concentration on senior-level hires. Clients (hiring firms) are predominately top-tier alternative investment managers.

Willow Hill is exclusively a retained firm and executes only a select number of mandates at a time, ensuring hiring firms receive the highest level of focus and attention. Through deep market knowledge, long term relationships and established trust, Willow Hill provides unconstrained access to top caliber talent while ensuring potential placements are thoroughly vetted and referenced.

[email protected]

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Author’s note:

Additional AMAs and reports can be found here: https://willowhilladvisors.com/thought-leadership/

From vetting talent, taking on a leadership role, dealing with headhunters, orchestrating a graceful exit, considering a counteroffer, mending professional relationships and headhunter-proofing your team, I've got you covered.

A former boss once quipped “Laurie’s directness can be a surprise to the uninitiated.”

Welcome to Ask Me Anything. Consider yourself initiated!

As always, feedback, questions and topic suggestions are welcome and appreciated.

Special thanks to contributors for so generously offering your time, insights, stories and humor.

~ Laurie