Limited Partner (LP) Investing Lessons

Limited Partner (LP) Investing Lessons

Share this post

Limited Partner (LP) Investing Lessons
Limited Partner (LP) Investing Lessons
Are funds safer than single asset deals?
Copy link
Facebook
Email
Notes
More

Are funds safer than single asset deals?

On the pros & cons of fund vs single asset LP investments

Aleksey Chernobelskiy's avatar
Aleksey Chernobelskiy
Mar 08, 2025
∙ Paid
1

Share this post

Limited Partner (LP) Investing Lessons
Limited Partner (LP) Investing Lessons
Are funds safer than single asset deals?
Copy link
Facebook
Email
Notes
More
2
1
Share

Welcome back and happy Friday!

“Invest in our fund, it’s safer because we provide you diversification across a bunch of deals”

I’m sure I’m not the only one who has heard this argument, whether it came from a fund or a feeder fund (I recommend you spend some time reading about the latter here).

Today we’ll dissect to which extent it’s true – perhaps single asset deals don’t make as much sense and LPs should focus more of their time on funds?

Some say this is true.. do you agree?


Announcements (article continued below):

  1. April LP Cohort: Review 4 deals with me and a small group of other LPs to learn what to look out for in deals. Please reply to this email if it’s of interest.

  2. LPs on GP-LP Match have now gotten 55 deals for free and the platform is at 1,280 verified LPs. If you’re an LP or GP join here in under a minute.


First, I want to remind you of the three pillar framework – it’s a good idea to at least glance at these articles before you continue to familiarize yourself with how I view and analyze LP investments.

  1. Execution - track record and counterparty risk

  2. Alignment of Interests - coinvest, waterfall, and fees

  3. Property - valuation and business plan

The only way to compare one deal to another is to compare it across these pillars – and the same holds true if you’re comparing a single asset deal to a fund with the exception of ONE variable – discretion.

What do I mean?

This post is for paid subscribers

Already a paid subscriber? Sign in
© 2025 Aleksey Chernobelskiy
Privacy ∙ Terms ∙ Collection notice
Start writingGet the app
Substack is the home for great culture

Share

Copy link
Facebook
Email
Notes
More