LP Investing Digest #3
LP Investing Digest #3
My tweets on investing, and anything else helpful
Welcome back to LP Lessons! Three notes:
Last paid post: 4 reasons why cap rates are misleading
Last free post: Friday’s LP Investing Digest #1
Announcing LP Stories:
I’ll start to share both positive and negative syndication stories right here on Substack through the podcast (audio) feature.
If you or someone you know did extremely well (or lost a lot of money) through a syndication, please reply to this email
I will keep both the LP and the GP anonymous
Happy Friday and welcome to another week of the digest!
These weekly posts are free and I hope you’ll consider sharing them as a way to say thank you.
Partitioning a return into is critical to finding an investment that matches your goals / risk profile
Asking a GP for top risks can often tell you a lot about the transaction that’s not in the deck
If you don’t understand something, ask… and don’t invest before you do
Operational excellence and good timing aren’t the same when it comes to evaluating a GP’s track record
Great GPs are hard to find - and when you do, be mindful
Refinances and cost segregations can cost you in cases of distress
Too funny to not share, but the original video (see link & scroll up) is even better - be mindful of such sales pitches
Don’t judge an investment based on fees alone - it’s just a small factor in a much larger picture
Make sure there’s a coinvest in every deal you look at
If the GP isn’t willing to answer questions or point you in the right direction, the answer is likely “no”
Self management by smaller GPs isn’t always a good sign (see link for full thread)
Whenever you’re ready, I could help you in 3 ways:
Limited Partners:
Future positions - you’re considering investing and need an independent opinion
Existing positions - there’s a lack of communication, you’re concerned about fraud, or perhaps you got a capital call request and not sure how to proceed
LP Course - if you’re interested in reviewing investment memos to get practice vetting deals, you can reach out by replying to this email. Putting this in bold because I have one more spot available (should be starting next week).
General Partners:
Deck review - I’ll look over your marketing materials from the perspective of an LP
Investment review - I’ll provide independent feedback on an opportunity you’re pursuing
General Consulting - modeling, strategic advisory, underwriting training, and much more.
If you’d like to speak on the phone, you can set up an initial consultation.