EMERGING MANAGERS LP Engagement

Establishing, Navigating and Maintaining LP Relationships

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written by:
Natalie Fratto
Managing Director, SVB’s Emerging Manager Practice

What LP Engagement Means for Emerging Managers

 
In the words of Union Square Ventures’ Fred Wilson, if founders are a venture capital (VC) investor’s customers, then limited partners (LPs) are the shareholders. Strong LP engagement can provide the bedrock for successful and enduring venture firms.

But what does LP engagement really mean for an emerging manager?

We answer that question by covering LP engagement over the full firm lifecycle in the following four parts:
  • Component 1 details the different types of LPs, including their typical check sizes and time to close
  • Component 2 offers tips on determining the right mix of LPs for your firm
  • Component 3 explores how to interact with prospective LPs throughout an active fundraise for your first fund
  • Component 4 breaks down LPs’ expectations once you’ve secured funding and as you deploy capital
 

Getting to know the LP landscape

 
Component 1 of 4
An overview of various types of limited partners, along with their typical approaches and goals.

 

Determining the right mix of LPs

 
Component 2 of 4
Factors to consider as you begin fundraising.
 

Navigating LP relationships

 
Component 3 of 4
Considerations as you begin to meet with limited partners.
 

Maintaining LP relationships

 
Component 4 of 4
Best practices for engaging with LPs throughout the fund cycle.

Read the other articles in this Emerging Manager article series

Building a Comprehensive Data Room


When the time comes for emerging managers to raise funds, a comprehensive data room can be essential. Your data room can provide limited partners (LPs) with a one-stop shop to understand your team, your strategy, and your track record. The stronger your data room, the more likely prospective LPs may be able to entrust you with their capital. Learn about the 9 key data room components that LPs need from emerging managers.

Pitch Your Fund by Highlighting What Makes You Noteworthy


Because the venture capital space continues to be very competitive, it’s important that first time fund managers communicate how they stand out from the rest of the crowd. Learn some best practices for making a first-time fund stand out helping to reduce the risk LPs take when investing in these new funds.
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Cash Flow Management for Emerging Managers: How to Approach Capital Calls and Distributions


Learn how fund managers should think about cash flow management, as well as strategies for balancing the needs of GPs and LPs when mapping plans for capital calls and distributions.
Nat Fratto 00 LP Home Series Cash— Flow Mgmt 500 x 500
 
 
 

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