Happy Friday {{first_name}},
Apparently there’s a LOT of “dry powder” out there just waiting for great operators to ask for it.
I’ve been on the phone with 5-6 family offices this week and they are scrambling for deals they can sink their stale and dusty capital into.
One family office has even increased their allocation mandate by triple.
So…if you’re a manager with a pipeline, just know, there’s NO SHORTAGE of capital.
So why is raising capital so hard for many right now?
Well, there’s a sundry of reasons why, but most are not because of what you think.
Many groups have “decent enough” deals, they just don’t have dedicated outreach systems.
Yep, it’s kinda the dumbest reason sponsors aren’t getting funded.
The money doesn’t know who you are.
You don’t have an Investors Relations team.
You don’t have outreach systems including outbound cold email campaigns, outbound calling, LinkedIn outreach sequencing and strategies, a place to direct everyone after attracting attention, a booking system, nothing…
That will get you nowhere fast.
Here’s the Dream Team:
Here’s the BUDGET Dream Team:
But first, you need a list!
Here’s what your IR Rep will do (mostly):
Let’s talk about building it.
I help many asset managers and groups raising capital by implementing this same system.
It’s not hard, it’s just a lot of time and effort.
…and yes, an investment.
The key is to start small.
Secure the data list (by now you should know who you’re targeting).
Begin outreach yourself (how would you train anyone if you haven’t done it yourself?).
Hire your first IR Rep! This individual needs to be incredibly dependable and experienced in sales and, preferably, has investor relations experience. Some of the best IR reps are compensated with a modest base and a generous sliding scale bonus structure.
Train alongside your new IR representative for two to three months. The both of you should be in the trenches.
Set goals, and push through the “quiet times”. (This one is hard because investor relations is all about one thing…relationships (wild right?), and if you think you’ll build relationships with $100K to $1M check writers in a month, you need to seek a new career.
Train, optimize, train, optimize, fire, hire, train, repeat.
Want to discuss building it?
Let’s chat, 100% free, and let’s look at it together.
Hoping this helps you grow,
Andrew LeBaron
P.S. If you’d like to build a newsletter like this one to attract and raise capital, book a call with me here.
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