the new rules for investor relations (alternative assets)
TRANSCRIPT
The New Rules for Investor Relations: KAP’s Fundraising FlywheelTM
KAP Group provides services and products to private equity and real estate managers during the fundraising and investor relations process.
KAP’s services are focused on making it easy for investors to invest with you.
Jen Hutter Liz Weiner Allan Siegert
Agenda
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Introduction to KAP’s Fundraising Flywheel™
The State of Play Today, over 1,000 private equity managers and nearly 500 real estate managers are raising capital
Private Equity (PE) and Real Estate (RE) Funds in the Market Over Time
812 920
1,153 1,192
466
478
451 492
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The Investors’ Pipeline
… and invests in 3
155
On The Road Again
Managers spend an incredible amount of time on the road raising capital, at a HUGE opportunity cost
24%
30%
46%
Breakdown of time on the road by RE funds in 2015
Average time in the market by RE estate funds
The Old Path The conventional way of raising capital – fundraise, fatigue, repeat – is tiresome, inefficient, and ineffective
Relationships, Relationships, Relationships Relationships remain the most critical part of capital raising
20%
26%
34%
36%
49%
61%
Proportion of Respondents
Methods Used by Institutional Investors to Source New RE Funds
A Different Approach
It’s time for a different approach to fundraising
KAP’s Fundraising Flywheel™ Philosophy The Fundraising Flywheel is a systemic approach to engaging with investors on an on-going basis
KAP’s Fundraising Flywheel™ Philosophy
KAP’s Fundraising FlywheelTM allows you to build loyalty among existing investors and to meet new prospects
Outline Your Communications Plan
KAP’s Fundraising Flywheel™ Philosophy
KAP’s Fundraising FlywheelTM allows you to build loyalty among existing investors and to meet new prospects
Outline your Communications Plan
With whom should you keep in touch?
Annual Meeting, Annual Letter
Communication Timeline
Have a systematic approach to reaching out to partners and prospects throughout the year
Thank You Set Expectations
Quarterly Report
Acquisition Announcement
Quarterly Report
Quarterly Report
Save-the-Date for Annual Meeting
Disposition Announcement
Good News: We closed or sold a deal!
Create a one page summary that describes the investment, sourcing, returns, and exit assumptions
Resist the urge to send your
investment committee memo
Bad News: Team Changes, Investment Level Changes
Pick up the phone to deliver bad news to your partners; if it’s really bad news, get on a plane
Departures. New Hires Investment UnderperformingIt’s time to make a call
Market When Not Marketing
JOE FUND I
JOE FUND MANAGER
SALLY FUND MANAGER
JOE FUND II JOE FUND III SALLY’S FUND II SALLY’S FUND I
JOE’S FUND ASSETS SALLY’S FUND ASSETS
Know your audience
Investors are busy! Standout by building a relationship before you are raising capital.
PORTFOLIO INVESTOR
KAP’s Fundraising Flywheel™ Philosophy
KAP’s Fundraising FlywheelTM allows you to build loyalty among existing investors and to meet new prospects
Market When Not Marketing
Developing Your Non-Marketing Presentation
Prepare an impactful non-marketing presentation.
Showcase your strengths both as an investor and an investment manager.
Be transparent about the state of your firm.
The Plan of Attack
Every investor meeting is the “big” meeting – make it impactful
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Say Thank You and Follow Up
Create a Capital Raising Strategy
KAP’s Fundraising Flywheel™ Philosophy
KAP’s Fundraising FlywheelTM allows you to build loyalty among existing investors and to meet new prospects
Create a Capital Raising Strategy
Finding the Right Prospects
Proactively seek out partners with whom your firm can grow
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Technology is Your Friend
Once you have a list of active prospects, leverage technology to track investor activity and log your dialogue with investors
100 Fillmore Street, 5th Floor
Denver, Colorado 80206
303-500-3320