LP Digest #69
Inflated private valuations, sensitivity tables, AI, and buying properties from yourself
Last premium post: LP Risk Mindshift - a guide to shifting your perspective on risk/return as a retail LP
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April LP Cohort: I have 1 more seat here. 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.
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Private vs public marks are always a big topic, but also a reminder that private market valuations are opaque
This has implications to valuations on any existing LP investments
As I wrote about in Minimum Viable Reporting Package there are levels of “helpful” when it comes to reporting packages, but one of the highest and best levels is a direct statement about how much someone’s LP investment is worth with support on any assumptions
I’ve written several articles on this topic … the thought process (and the comments in the post) are a worthwhile read
Recommend reading going in assumptions for an LP and the dangers of trust but verify for my thoughts on this topic
Some thoughtful commentary on sensitivity tables, which I recommend you understand in depth
For more examples, see the ones I created in why most LP syndications won’t 2x your money and don’t lose your money, seriously
Some big 506(C) news recently that impacts both GPs and LPs
If you’re a techy real estate nerd (or just want to be up to date on the tech’s possibilities) you might enjoy this
Wouldn’t be a weekend without a meme (but also make sure you know who your GP is buying their property from!)
When you’re ready, I could help you in 3 ways - simply reply to this email if one is of interest:
Limited Partners:
GP-LP Match - a simple way for you to get more deal-flow that matches you precise LP parameters. You can join here in under a minute.
Potential 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 you’re not sure how to proceed. I have also helped LPs with a “post-mortem” analysis on deals that didn’t work out - it’s important to learn these lessons as opposed to just blaming the GP.
LP Cohort - review 4 separate memos together with me and other LPs to learn how to vet LP investments.
LP Topics Seminar - an ongoing biweekly 1 hour meeting with other LPs where we'll go over investment decks, capital calls, distressed situations, and modeling. This is meant to provide a deeper look into existing LP investments. Please reply to this email if you’re interested.
LP Investing Lessons Podcast - learn from others investing lessons here. if you're an LP with lessons learned from a successful or unsuccessful investment, consider replying to this email to share your knowledge with others. Both the LP and GP in the recording are kept anonymous.
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Find GPs in unique asset classes/geographies on my monthly Twitter intro post (see LinkedIn’s post as well for more)
General Partners:
GP-LP Match - a simple way to reach over 1,000 LPs, for free. You can register and submit a deal in under 5 minutes.
Deck review - I’ll look over your marketing materials from the perspective of an LP and provide slide by slide commentary to improve your pitch
Investment review - I’ll provide independent feedback on an opportunity you’re pursuing
Capital call advisory - you suspect that you’ll need to make a capital call, but aren’t sure how to proceed or communicate the message.
Other - anything from waterfall/fee advisory to disagreements between co-GPs on the proper path given a set of circumstances
General Consulting: modeling, strategic advisory, underwriting training, etc.
If you’d like to speak on the phone, you can reach out to me any time at aleksey@centriocapital.com