Top private equity pitching mistakes to avoid
January 08, 2020
What are the private equity pitching mistakes most commonly made by fund managers?
I asked the fundraising panel at a recent SuperInvestor conference which private equity pitching mistakes are regularly made by fund managers.
On the panel were Catherine Lewis La Torre, Anna Dayn, Spencer Miller and Marc der Kinderen. Between them, they see around 400 fund pitches every year. The panel revealed that of the 400 private equity fund pitches they see each year, they eventually invest in about 10 of them.
Learn from these mistakes made by other fund managers to increase your chance of securing investment.
Four private equity pitching mistakes to avoid
Private equity pitching mistake 1: Defensive or aggressive responses
The job of investors is to ask questions and be critical. Investors need to be sure they have accurate information so they can come to a good decision. Yet, rather than responding politely, Marc der Kinderen often finds that the fund manager takes things personally.
He said, “We are looking for people we can team up with for a decade. The moment we find people who are aggressive and defensive about their history – if we can’t ask questions – then due diligence stops.”
Private equity pitching mistake 2: Deferring answers to later on in the presentation
Although you may have prepared a standard pitch, remember that every investor is different. Refusing to tailor your pitch or answer a question straight away shows an attitude of indifference towards your audience. Catherine Lewis La Torre said, “I find it frustrating when I ask a question and the fund manager says, ‘I’m coming to that, it’s on page 20 of the presentation’. Often the question never gets addressed.”
Private equity pitching mistake 3: Lack of team dynamic
If the members of a pitching team contradict, interrupt or ignore each other, you put the stability and strength of the team in doubt. Spencer Miller said, “It’s my number one test: how do they interact with each other? Is it a partnership, or is it individuals?”
Private equity pitching mistake 4: Lack of respect for the investors’ time
Showing up late or rescheduling at the last minute gives an impression of disorganisation as well as a lack of respect for the LP. Anna Dayn said, “Some managers have an incorrect assumption that we have limitless time for them.”
Learn how to create a great equity story for your pitch.
Professional support to give you the best chance of success
Benjamin Ball Associates can help you avoid these and many other common mistakes. Let us help you prepare your private equity team for investor presentations.
We support the pitches and presentations of both funds and portfolio companies, maximising your chances of securing investment.
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If you want to improve your pitch to investors call Louise on +44 20 7018 0922 or email email@example.com.
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