LP Investing Digest #24
LP Investing Digest #24
Tweets on investing, and anything else helpful to LPs
Last premium post: Guaranteed red flag
Last free post: LP Investing Digest #23 & Full Article Digest
Announcements:
Announcing Monthly “LP Topics” Meetings - many have asked me to create an ongoing meeting where I can share some of the things that I’m seeing. The goal of these meetings will vary from modeling exercises to looking at deals in distress. If this is of interest, please reply to this email and (optional!) let me know what topics you’d enjoy seeing.
Happy Friday and welcome back 👋
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One of the craziest stories I’ve ever heard with many lessons; deals with single tenant investments, which I wrote about here in case you missed it
Extremely basic, but important reminder for every LP… with a recent example (Class A building, in a great location!)
I think this was a great point, and the inverse applies to LPs - don’t filter by IRRs! I’ll write more on this topic soon
My first official red flag statement, article here if you missed it
Discounts to seller (or comps even) aren’t as useful as people make them out to be
LP investments are passive, but that doesn’t mean they won’t give you heartache if things don’t work out - don’t overexpose yourself to a given asset class, GP, strategy, etc
The importance of soft costs in development deals
Have a wonderful weekend!
Thank you for reading! I genuinely hope you found this helpful - the best way to say thank you is to spread the word.
I advise LPs on existing and potential positions and write articles here weekly on what I see in the marketplace that could help you invest better. You can find me on LinkedIn or Twitter.
Whether you’re an LP, want to learn to become one, or affiliated with LPs (GPs, Attorneys, CPAs, Wealth Advisors) I hope you’ll consider subscribing and sharing this post to help others make more informed investment decisions.
When you’re ready, I could help you in 3 ways - simply reply to this email if one is of interest:
Limited Partners:
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 Community - join my free 1,900+ member LP community on Twitter
Find GPs in unique asset classes/geographies on my monthly intro post (see LinkedIn’s post as well for more)
General Partners:
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 set up an initial consultation.