60 Seconds with Sixpoint

Building Your Document Library for LPs

A common misstep we see when sponsors are coming to market is that they launch before they have all their necessary documents ready. The time to collect and organize these materials is during your pre-marketing process with existing LPs. Pre-marketing allows you to solicit feedback from your inner circle with respect to terms, positioning and… Read More

How to Foster a Strategic LP Base

An LP can be viewed as strategic to a PE sponsor for a myriad of reasons depending on the structure and goals of the firm, but two core attributes sought in almost every circumstance are consistent access to capital and long-term view of the market. Strategic LPs can be helpful when thinking about an industry… Read More

How to Navigate an LP’s Investment Committee

Private equity sponsors frequently overestimate how deep and broad their relationships are in the institutional investor market. In some cases the relationships truly are impressive and noteworthy, but we often find that there’s a disconnect between some sponsor’s sense of the relationship and the actual percentage of the LP’s mindshare. In fact, we sometimes find… Read More

How Firm Culture Drives Returns

If you were to ask PE sponsors to define what culture means to them or their firms, you’d be likely to receive the same number of answers as the number of people you asked. However, where there would be widespread agreement and a mountain of evidence – is that culture is critical to success. At… Read More

The Attraction of Investing in a Re-sized or Re-Positioned Fund with a New Story

The current market environment seems to be replete with examples of fund managers exceeding their fundraising goals with a “one and done” close and accomplishing these efforts in record speed – often less than 6 months in market. Many of these sponsors are top-quartile performers where their outperformance has enabled them to command excess LP… Read More

What if I want to hold on to one asset in my portfolio…forever?

This is a common question we get from a variety of sponsors in the market, so we interrupt our regularly scheduled topic therefore to address this question put forward by many readers of the previous issue of 60 Seconds. Last week, I talked about why and how you might manage out the entirety of your… Read More

Solutions for Managing out Your Legacy Portfolio

As a result of the Global Financial Crisis, many successful GPs, including those who have recently raised new funds, are still managing legacy funds from vintages within the 2005 to 2009 timeframe. Typically, these legacy portfolios contain a few tail assets that have held back the sponsor because they have underperformed, are in need of… Read More

How to Ensure Your Fund is 2x Oversubscribed

While out on the road meeting with sponsors recently, I have been speaking about the importance of generating outsized LP demand in every given fundraise. GPs uniformly look to meet (or exceed) their fund hard cap, but rarely do they have a true capital target or LP profile in mind.  Simply stated, if you are… Read More

Key Private Equity Trends in the Middle-Market

Analytics that reflect patterns of behavior are useful underpinnings upon which to make judgements about where institutional LPs and middle-market sponsors are headed. It is important, however, to view such analysis within the broader context of the alternatives industry or the markets generally. In that spirit, Sixpoint has relied on a combination of market research… Read More

How to Keep Your Best Talent from Spinning Out and Competing with You

From the football gridiron to the modern day battlefield, coaches and generals alike have often subscribed to the principle that “the best defense is a good offense.” The same is true in private equity where the market is constantly evolving and the firms that are most willing, and capable, to adapt to meet the challenges… Read More