LP Investing Digest #12
LP Investing Digest #12
Tweets on investing, and anything else helpful to LPs
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Happy Friday and welcome to another week of the digest!
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I’ve said in the past that managing internally isn’t always good for smaller GPs (see #10 here). I thought this was an interesting perspective on why someone decided to self manage and I’d recommend asking something similar to a GP (especially if they’re small)
Not fulfilling your (expected) capital calls comes at a big risk to the LP. More on that from my NYC trip here (see #6)
Real estate isn’t risk free…
Might be surprising, but this happens…
Thought this was a great opportunity to learn about financials - hard to do anything in investing (including real estate) without them
Watch for unrealistic expense assumptions at acquisition, not everything will go according to plan
An interesting case of (potential) misalignment of interests between GP and LP. Note that just because a property isn’t “near the point we projected” does NOT mean it’s not the right time to sell to capture the largest return for the LPs - this might be a save face mechanism while raising for other deals…
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