60 Seconds with Sixpoint

The LP HOV Lane

The goal of any well-run investor relations or pre-marketing program is an efficient fundraise that minimizes guesswork and unpleasant surprises when closing LP commitments. Sponsors are frequently frustrated or bewildered by their interactions with LPs, and each party feels like they are approaching the prospective relationship from very different places – a veritable “GPs are… Read More

How to know when it’s time to launch your next Fund

In light of the robust fundraising environment, many sponsors are looking to take advantage of strong LP appetite for middle-market private equity by returning to market early. Others are less certain. In either case, it’s imperative to look before you leap, even in a strong market. Launching your next fund offering at the appropriate time… Read More

Busy Start to 2017

Sixpoint Partners is pleased to announce the close of a busy period of Primary, Secondary and Co-Investment activity. In the first half of 2017 alone, we have closed on 6 transactions totaling $2.4bn. Whether you are a sponsor looking for fee-based capital or transaction advice or an institutional investor seeking access to secondary or co-investment… Read More

How to Address LP Bias Against Your Fund

Controlling the narrative around your fundraise and more broadly your brand requires a degree of receptiveness and preparation that sponsors sometimes underestimate. At no point is a fund manager more publicly facing than when they are raising capital, but instead of being vulnerable at this point, the best private equity firms use this time as… Read More

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