LP Investing Digest #39
LP Investing Digest #39
Tweets on investing, and anything else helpful to LPs
Last premium post: LP Investing Lessons Podcast #5
Last free post: LP Investing Digest #38 & Full Article Index
LP Cohort: I have some space in the August cohort, please reply to this email if it’s of interest. Review 4 deals with me and other LPs to learn what to look out for in deals.
Happy Friday and welcome back 👋
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As a reminder, none of the posts/links are a recommendation to transact or invest with the poster.
A good reminder that the 5% treasury/CD rates might not last forever… I write more on this topic in Is real estate better than treasuries?
This is a subtle but important point - while a GP needs to pay its employees and (in some sense) runs on fees in short term, many wouldn’t proceed on a deal - even with a larger promote potential. More on fees and splits here.
Two separate posts this week that point to the difficulty of keeping returns consistently high as you have more capital to deploy. Although both of these posts deal with public market investing, I think the same principle is true in the syndicator universe. See more on this topic of not focusing on IRR here, I also talk about the Medallion fund in the context of fees in Top 15 Syndication Mistakes.
Fascinating chart on daily return dispersion of the S&P over the past 5 years
A deeper look at the real estate CLO market
A look inside multifamily credit across year and asset class
This is meant to be a joke, but is actually relatively accurate and reminds you that different asset & building classes have different CAPEX and maintenance expectations
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 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.
LP Community - join my free 2,300+ member LP community on Twitter
Find GPs in unique asset classes/geographies on my monthly Twitter 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 reach out to me any time at aleksey@hey.com