By, Kenny Gary
Private equity has always been a high-stakes, high-noise game…and now the stadium is packed and the audio’s cranked. LPs are sifting through a sea of funds, and simply being “solid” or “seasoned” won’t cut it. A recent DealStreetAsia article highlighted how LPs are swiping left more often, hunting for managers who stand out. Here’s what we think matters most.
Show real performance
LPs want clear, repeatable results backed by data—not marketing fluff. About 30% of LPs say they’re planning to increase their PE allocations in the next year, according to McKinsey’s latest LP survey. This suggests that these LPs are ready to put capital behind the managers they trust (McKinsey Global Private Markets Report 2025 reports 30% plan to increase allocations). This makes performance proof not just useful; it’s essential.
Niche expertise is a magnet
Generalist funds are fading from LPs’ radar. With almost nine out of ten LPs believing private markets will outperform public ones long-term, those specializing in sectors or regions with conviction are getting noticed (Adams Street Partners 2024 Investor Survey shows 88% expect private markets to surpass public markets). Focused strategies don’t just get heard…they get funded.
Co-investments and alignment
While co-investment interest has cooled slightly recently, they still play a pivotal role in LP-GP alignment. Adams Street notes that 88% of LPs plan to increase allocations to co-investments, often up to 20% of their portfolios, which is proof both of appetite and trust-building potential (2025 Survey data). Delivering co-invest opportunities isn’t optional anymore. It’s mission-critical.
Reputation and team trust matter
According to Edelman Smithfield’s 2024 LP Survey, 46% of LPs rate GP reputation as more important than returns, and 98% review social media before committing. That means your team needs to feel real, credible, and stable…not like a soap opera in motion (Edelman Smithfield 2024). Show your cohort’s unity, grit, and professionalism in both stories and posts.
Communicate like a savvy partner, not a salesperson
LPs approach manager selection like dating. It’s rarely a quick pitch. Almost two-thirds plan to build relationships gradually through newsletters, low-commitment events, and co-investments. GPs without a smart content cadence risk losing traction. In short, be persistent—but in a way that feels personal and thoughtful.
Quickplay for GPs
- Publish fact-rich case studies: What you did, how you did it, and why it matters.
- Own your sector or region: Make your niche a brand unto itself.
- Facilitate real-time engagement: Co-investment opportunities with clear economics.
- Tell consistent stories: Use human tone, personal updates, progress trackers.
- Display your governance: Show transparency, team stability, and investor alignment.
Why It Matters
- 30% of LPs plan to expand PE exposure over the next year—so if you’re visible, you’re in the game.
- 88% believe private markets will outperform, reinforcing the importance of being a standout manager.
- Co-invest allocations are rising, with nearly 90% of LPs intending to commit more.
- Reputation trumps returns for almost half of LPs, and social media presence is non-negotiable.
The biggest funds will always get attention…so for all of the other funds out there, you’ve got to differentiate or get drowned out. LPs are looking for performance backed by proof, specialization backed by conviction, and communication backed by integrity. Bring receipts, share stories, play the long game, and own your niche. Because in a noisy market, distinct beats default every time.