How LPs pick GPs
Investors assess managers’ teams, attributable track records and the repeatability of their strategies alongside operational risk, terms, alignment and the investor’s own mandate.
How LPs pick GPs in practice
Hypothetical: an investor reviews a manager’s dated investment cash flows, attribution, risks and operating evidence to assess how returns were earned. A portfolio company’s accounting return on equity is not the same as deal or fund returns and does not by itself prove either a repeatable playbook or luck.
Shayne Fitz-Coy’s definition of How LPs pick GPs
They’re buying the people more than they’re buying anything else.
Terms Related to How LPs pick GPs
Top-quartile · Due diligence · Gross vs net returns · GP · All of the glossary