[page_counter]
Private equity fundraising | Seven tips for first investor meetings

Private equity fundraising | Seven tips for first investor meetings

December 10, 2015

What do LPs want from private equity funds at first investor meetings?

That’s the question I put to the panel at SuperInvestor 2015, the annual conference for private equity decision makers. On the panel were Catherine Lewis La Torre, Anna Dayn, Spencer Miller and Marc der Kinderen. Between them, they see hundreds of first investor meetings and they’ve seen them all – the good, the bad and the ugly.

Of the approximately 400 private equity funds they engage with, they eventually invest in about 10 of them. The intense level of competition for investment underscores the need for a high impact and successful first meeting. This was their advice.

Seven tips for first investor meetings from LPs

 
 

First investor meetings | Tip 1: Be punctual

“Show up on time and not try to reschedule 10 minutes before the meeting,” was Catherine Lewis La Torre’s simple advice.

 

First investor meetings | Tip 2: Tell stories

Your only goal from a first investor meeting is to get a second investor meeting. How do you do that?

Spencer Miller said, “I want to understand who they are; what the strategy is. Private equity fund teams can bring this to life by using case studies about investments. Case studies answer questions around competition, market positioning, strategy and value.”

 

First investor meetings | Tip 3: Start a long-term relationship

“What I really like to see is consistency, persistence and understanding,” said Anna Dayn. “We’re building long-term relationships, so I want to see recognition that this is a long game. In terms of understanding, it’s about finding the right balance with investors, staying on top of that and, after that meeting with us, following up, and not getting ahead of the process.”

 
Improve My Investor Meetings Today

First investor meetings | Tip 4: Explain what makes you special

“For us it has to be very clear what exactly you do to create value,” said Marc der Kinderen. “What’s the return driver? What is your ‘trick’ that you can do repeatedly? We’re looking for groups that can explain to us what they are very good at, and go into case studies. Then our team can sit together and compare notes in a systematic way.”

 

First investor meetings | Tip 5: Send information in advance

“We always get the PPM in advance,” said Marc der Kinderen. “One of our analysts goes through that in detail. We get a 10-minute pitch from our analysts internally, before the meeting actually starts.”

“Out of the 100 first meetings that we have, 70 of them we already know, because they came three to four years ago. So our analysts will go back and get that PPM, compare with the current one, and we are prepared. We go in, we give them an hour and a half, we talk about things.

“After that we turn down half of them virtually immediately, mostly based on risk, if we think there is too much team risk. The other half we invite back. Then we work our way down to five per year that we invest in.”

Lastly, before you send your pitch book to investors, test it against these six questions first.

 

First investor meetings | Tip 6: Keep communicating

“Communicate if you close a deal,” said Spencer Miller. “Some GPs invite you to their AGM as a way of getting to know the organisation. There are subtle ways of building the relationship over a period of time.

“It’s rare to meet someone for the first time in the middle of fundraising and commit to them six weeks later. It’s normally a process of many months or years to build that understanding for a commitment to be made.”

 

First investor meetings | Tip 7: Make every meeting feel like your most important meeting

“The final thing for me,” said Spencer Miller, “Is that private equity fund teams have got to have all the energy, enthusiasm for the meeting as if this is the first meeting of the day – even if it’s the last.”

Improve My Investor Meetings Today

Professional support for the best chance of success

Benjamin Ball Associates prepares private equity teams for investor presentations. We combine our knowledge of the private equity sector with coaching, pitch polishing and advice. We improve the pitches and presentations of both funds and portfolio companies.

If you want to improve your pitch to investors call Louise Angus, Client Services Director on 020 7018 0922 or email louise@nullbenjaminball.com. We’ll make your pitch confident, memorable and effective.

Video: How Private Equity Funds can pitch, present and persuade more effectively

Paul Farrow is a Partner at Benjamin Ball Associates. In this video from SuperReturn US East, Paul discusses the common mistakes made by Private Equity funds when communicating with potential investors. He reveals the unexpected personality trait that investors look for in fund managers, and why LPs don’t want to ‘be taken through your pitch presentation’. He shares essential advice that will improve your fund’s messaging, help you stand out and impress prospective investors. Click the play button below to watch:

You may also be interested in...

Fundraising Presentations: a survive and thrive guide for talking to investors

Apr 21, 2017

Fundraising presentations are hard work. You're bombarded with challenging questions from investors, worn out by long days, and struggling to...

Read More

Persuasive Investor Presentations – five techniques from psychology

Apr 13, 2016

Investment decision-making is not totally rational. Are you using all the tools at your disposal to create and deliver persuasive...

Read More

Five reasons that good public speaking skills make you a better leader

Nov 11, 2016

Do your public speaking skills inspire, motivate and influence others? They should. Many leaders are nervous of public speaking. Some...

Read More

Ten Benefits Of A Better Investor Pitch Book

May 10, 2018

A great investor pitch book is at the heart of successful fundraising.  It should capture the essence of your business...

Read More

Why Body Language Matters When Pitching to Win Business

Jun 29, 2012

Better Body Language We all know that body language is important in business.  But how important? And does is really...

Read More

Private Equity Fundraising Tips from the Experts: Become a Top 1% Fund

Sep 06, 2017

How can you be seen as a top 1% fund by investors? At SuperReturn Emerging Markets in Amsterdam, experienced LPs...

Read More

How you can create a powerful elevator pitch

Mar 07, 2016

A great elevator pitch is an essential part of your toolkit Last month I chaired the Quickfire Showcase at Berlin’s...

Read More

How to Take Charge of Your Media Interviews

Jan 16, 2013

Better Media Interviews The excruciating Newsnight interview with Treasury Minister Chloe Smith this summer is just one example of how poor preparation...

Read More

How To Write So People Will Read – 6 Great Tips

Mar 11, 2018

These days, we are writing more than ever.  That means it’s harder than ever to grab attention.  Your readers have...

Read More

How well do you answer difficult investor questions?

Nov 16, 2017

When an investor questions how you calculated your Private Equity fund's performance, how do you react? If an investor asks...

Read More

How to Choose a Public Speaking Coach

Aug 21, 2017

How do you choose a public speaking coach? When selecting a public speaking coach or presentation trainer, you want to work...

Read More

10 Power Language techniques to use in your next talk or presentation

Sep 06, 2017

How To Harness Powerful Language For Leadership Communications Great leaders use Power Language to add interest and colour to even...

Read More

The “So What?” Test

Dec 30, 2009

When you put your talk or presentation together, how do you decide what to include and what to leave out?  Use...

Read More

Private equity fundraising | Seven tips for first investor meetings

Dec 10, 2015

What do LPs want from private equity funds at first investor meetings? That's the question I put to the panel...

Read More

What do investors want? Six pitch tips for 2017

Sep 21, 2016

While we wrote this piece with our Private Equity clients in mind, there are good lessons here for anyone pitching...

Read More

Give high impact talks and presentations – 5 simple tips

Mar 01, 2017

Do you want to give high impact talks and presentations? Do you want to engage your audience? And do you want...

Read More

Storytelling: your secret weapon for effective business communication

Jul 05, 2017

Leaders use storytelling so that audiences listen, remember and act on what they say. In fact, stories are “the single...

Read More

Make Your Investment Pitch More Memorable – Six Simple Tips

Mar 29, 2017

How do you make your investment pitch more memorable? It's a real challenge these days. Investors have more opportunities than...

Read More

Three persuasive appeals you must use in your talks and presentations

Nov 30, 2016

Your leadership talks need to be persuasive As a leader, every talk or presentation you give is an exercise in persuasion....

Read More

What do LPs want from your private equity pitch book?

Oct 14, 2015

A well-crafted private equity pitch book can make the difference between securing a first meeting with investors and getting a...

Read More

ESSENTIAL PROGRAMMES

Review our top coaching, advice and training programmes.

1. Improve Your Investor Pitch

2. Public Speaking Coaching

3. Presentation Coaching

4. Media Training
All these are in-house programmes. (Not ‘open’ courses.) and can be run as 1:1 or small group training in-house.
Contact Us Now

.

Top Blog Posts

What Our Clients Say


“The new presentation properly represents the institutional quality of our fund. It has been a step change of us.”

Erwin de Kleijn Head of IR, Saemor Capital


“This training has contributed directly to new business – including a new FTSE100 client.”

Michelle Elstein Head of Business Development, Olswang LLP


“BBA transformed our pitch into a compelling investment narrative. They undoubtedly helped us secure Sky TV as an investor.”

Gerry Bastable  Director, Blast Films