LP Investing Digest #44
LP Investing Digest #44
Tweets on investing, and anything else helpful to LPs
Last premium post: Minimum Viable Capital Call
Last free post: LP Investing Digest #43 & Full Article Index
Announcements:
LP Cohort: I have space in the September cohort. Please reply to this email if it’s of interest. Review 4 deals with me (4 consecutive weeks) and other LPs to learn what to look out for in deals. I recommend doing this before the LP Topics Seminar.
LP Topics Seminar: an ongoing biweekly 1 hour meeting with other LPs where we'll go over investment decks, capital call and 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.
A fascinating look at principal advanced (by different lenders) on the same building over time - and a good reminder that both the “V” in LTV as well as the LTV% percentages change over time. Recommend reading Refinance Assumption Trap for more on this topic
Property management isn’t created equal.. this is a good example (VLI means Very Low Income)
An interesting dive into the challenges in the home insurance marketplace (which I think will impact multifamily as well) - article here
Just because you’re being asked to make a decision by a given date, doesn’t mean you have enough information to do so… more here
A reminder that a GP (similar to this business owner below) could, hypothetically, walk away from a given business… this is why tenure/experience as well as aligned incentives are particularly important. This can be categorized under key-man risk
Don’t forget to show some gratitude - GPs are people just like us, with plenty of stress :)
Also, I wonder whether this is 45 seconds because the LP didn’t read it (don’t recommend) or because the package is so clear (that’s great!). See more on what you should expect out of reporting packages here
An interesting look at tax rates across other countries and some thoughtful commentary therein
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 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.
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