Communication is Key: Reflections on a Decade of Investor Marketing

Brackendale Consulting’s founding CEO Fay Margo sits down with Jim Weight, Managing Partner at Weight Partners Capital, who shares his reflections on how the fundraising market has changed over the past decade and how communicating with investors has evolved in recent times.

Fay: How have you seen LP behaviour evolve over the past 10 years?

Jim: LPs used to focus chiefly on strategy, team and track record, and conversations weren’t as immersive as they are today. Ten years ago, LPs didn’t have a comprehensive understanding of the mechanics of what GPs did in terms of portfolio management, because the industry was less mature. They made fewer co-investments than they do now, so they were less involved in the deal process. Co-investments offer LPs a seat on the board and the opportunity to gain firsthand insight to actively compare what makes a good GP and what makes a less effective GP. Over the years, LPs have been able to grow their proprietary databases on investments made into the thousands of deals invested across different investee funds, enabling them to actively track which sectors and which styles of investing work best. Although there are fewer fund-of-fund managers now than there were 10 years ago, they are an excellent way of providing lower-mid market fund managers access to capital from the larger institutions that don’t commit tickets below £50m. LPs fully recognise now that newer, smaller funds produce higher returns. They are also cognisant of the benefits of sector specialisation, and have warmed to deal-by-deal investing.

Fay: How have investor demands changed over the past decade?

Jim: LPs now go into more depth in terms of fund due diligence over a longer timeframe and expect GPs to be on top of their game in terms of reporting and accountability for investment decisions. They want to receive a steady stream of communications. Prior to committing to a fund, LPs used to take a look at a ‘deal folder’ which detailed information on previous investments, with the risk that some fund managers were prone to employing a certain level of creativity when inputting information. Nowadays LPs will actively track deals while they are being executed to see how current fund investors’ capital is being invested, and make a decision accordingly.

Fay: What do fund managers need to do to address investor demands and meet expectations?

Jim: As the industry evolves and matures, there are more, and larger, conferences and GPs need to do more to get noticed and stand out from the crowd. There is far more to communicate to investors about and communications channels are more complex. A decade ago, Preqin would publish its annual directory and we would pick up the phone, have a conversation and then arrange to see an investor. Now Preqin is updated in real time and LPs can actively monitor investment activity via LinkedIn, newsletters, and mailshots. They expect more detail in terms of the information they receive in pitch decks, datarooms, and due diligence questionnaires. This certainly provides a greater role for investor communications companies like Brackendale.

Fay Margo, Founding CEO, Brackendale Consulting
and Jim Weight, Managing Partner, Weight Partners Capital

Brackendale Consulting - celebrating its 10th Anniversary

Brackendale Consulting is a global agency offering investor marketing, media relations, graphic design and investor pitching services to private equity and VC firms globally. Brackendale produces and advises on content for investor pitchbooks, PPMs, ESG reports, quarterly reports and newsletters, as well as offering investor pitch training masterclasses to help private equity fund managers pitch successfully to potential investors. Our graphic design team professionally designs investment materials, corporate identity, logos and social media graphics. For more information please visit www.brackendaleconsulting.com.

Weight Partners Capital

WPC is a London-based specialist private equity investor founded in 2009 to invest in sectors where the team has operational experience. We focus on healthcare services businesses in the UK lower-mid market. WCP is passionate about driving positive and meaningful social impact across essential healthcare services such as residential and nursing care for the elderly. We invest selectively in businesses we understand, and then work closely with management teams over an extended period. We think that this is the best way to consistently drive attractive returns for investors and for management teams. For more information please visit www.weightpartners.com.