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Here are 10 ways for a fund manager to reach their first close: 1. Secure soft commitments from potential investors before officially launching the fund. This helps gauge interest and momentum[3]. 2. Target at least 20-25% of your minimum fund size for the first close to demonstrate traction to other investors[3]. 3. Develop a clear and compelling investment strategy that aligns with limited partners' (LPs) objectives and risk profiles[4]. 4. Build a strong, experienced team with diverse skills in investing, operations, and industry knowledge[4]. 5. Demonstrate a proven track record of performance in previous investments or roles[4]. 6. Offer attractive terms in the Limited Partnership Agreement (LPA) for early investors to incentivize participation in the first close[3]. 7. Understand your target LPs' needs, preferences, and investment criteria to tailor your pitch effectively[3]. 8. Have some skin in the game with some of your own capital if possible to get started and show alignment of interests with LPs[4]. 9. Prepare for thorough due diligence by having transparent performance data and references readily available[4]. 10. Consider holding investor meetings and roadshows to pitch your fund's strategy and build relationships with potential LPs[1]. Remember, reaching the first close is a critical milestone that demonstrates the fund's viability and can help attract additional investors for subsequent closes[3]. Sources [1] [PDF] How Important is the First Close? - Preqin https://lnkd.in/eBdCHNEn [2] 6 Popular Investment Strategies Of Fund Managers | Bankrate https://lnkd.in/exgSYVyk [3] What is a VC Fund Closing? - Carta https://lnkd.in/eqJ4BmHK [4] First-Time Fund Managers: 5 FAQ's - LinkedIn https://lnkd.in/e3Zey_AJ [5] First-Time Fund Managers: Strategies for Overcoming Challenges ... https://lnkd.in/e2cNdEA5
