{"id":44241,"date":"2017-08-01T04:11:36","date_gmt":"2017-08-01T02:11:36","guid":{"rendered":"https:\/\/newserver.fyb.de\/produkt\/momentum-in-fundraising-a-good-track-record-is-not-everything\/"},"modified":"2017-08-01T04:11:36","modified_gmt":"2017-08-01T02:11:36","slug":"momentum-in-fundraising-good-track-record-is-not-all","status":"publish","type":"product","link":"https:\/\/www.fyb.de\/en\/produkt\/momentum-in-fundraising-good-track-record-is-not-all\/","title":{"rendered":"Momentum in fundraising \u2014 a good track record is not everything"},"content":{"rendered":"<p><strong>Sonya M. Pauls, LL.B.<\/strong>  \u2014 Lawyer and Part\u00adner, King &amp; Wood Malle\u00adsons SJ Berwin, Munich\/London Soli\u00adci\u00adtor (England &amp; Wales), Barris\u00adter (Lincolns Inn\/England &amp; Wales), Attor\u00adney at Law (New York), Accre\u00addi\u00adted Media\u00adtor (adrG, London)<\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>Just a few years ago, fund mana\u00adgers did not start plan\u00adning the fund\u00adrai\u00adsing for their next fund until shortly before the end of the invest\u00adment period. They could gene\u00adrally count on a high rene\u00adwal rate from their exis\u00adting inves\u00adtors, provi\u00added the exis\u00adting fund did not expe\u00adri\u00adence quite signi\u00adfi\u00adcant perfor\u00admance decli\u00adnes. With a good perfor\u00admance, the remai\u00adning inves\u00adtors were added within a period of another six to nine months until the last subscrip\u00adtion dead\u00adline. This envi\u00adron\u00adment has chan\u00adged. Today, nume\u00adrous other factors deter\u00admine success in fundraising.<\/strong><\/p>\n<p>The fund\u00adrai\u00adsing process has become much more profes\u00adsio\u00adnal in recent years, and not just because of the econo\u00admic envi\u00adron\u00adment. Gene\u00adral Part\u00adners (GPs) today need to be very good at both disci\u00adpli\u00adnes: both the invest\u00adment busi\u00adness and the fund\u00adrai\u00adsing busi\u00adness. The success para\u00adme\u00adters in this sector are no longer defi\u00adned locally but globally. In recent years in parti\u00adcu\u00adlar, inves\u00adtors world\u00adwide have greatly redu\u00adced the number of their busi\u00adness rela\u00adti\u00adonships with private equity or venture capi\u00adtal funds (= gene\u00adral part\u00adners) and at the same time focu\u00adsed on them. There is a clear trend towards quality<em>(flight to quality<\/em>).<\/p>\n<p>Howe\u00adver, even in this envi\u00adron\u00adment, many private equity and venture capi\u00adtal funds manage to get to closing in a focu\u00adsed and effi\u00adci\u00adent manner. Others take much longer with a simi\u00adlar track record. Often, only small aspects, such as prepa\u00adra\u00adtion or timing, deter\u00admine whether a process main\u00adta\u00adins its momen\u00adtum or collap\u00adses, exten\u00adding the fund\u00adrai\u00adsing period.<\/p>\n<p><strong>The prepa\u00adra\u00adtion<\/strong><\/p>\n<p>First of all, the prepa\u00adra\u00adtion and proper place\u00adment of the fund product is important. In addi\u00adtion to a detailed analy\u00adsis of the track record (nowa\u00addays also with regard to the <em>under\u00adly\u00ading cash flows<\/em>!), it is essen\u00adtial to present the stra\u00adtegy in a detailed and plau\u00adsi\u00adble way. The more complex and less compre\u00adhen\u00adsi\u00adble a stra\u00adtegy is (also against the back\u00adground of the track record), the more diffi\u00adcult it beco\u00admes to cate\u00adgo\u00adrize the product from an inves\u00adtor\u2019s point of view, also from an allo\u00adca\u00adtion point of view. The track record should meet the prin\u00adci\u00adples of rele\u00advance,<em>attri\u00adbu\u00adtion<\/em> and<em>veri\u00adfi\u00adca\u00adtion<\/em>.<\/p>\n<p>The brand strength of a GP and the need for a unique selling propo\u00adsi\u00adtion (USP) has become very important. Many of the funds fall into the infa\u00admous <em>\u201cjust another buy-out fund\u201d<\/em> category.<\/p>\n","protected":false},"featured_media":41136,"comment_status":"closed","ping_status":"closed","template":"","meta":{"wp_typography_post_enhancements_disabled":false},"product_brand":[],"product_cat":[2452,2536,2602],"product_tag":[1587,2138,2152,2162,2381,2392],"class_list":{"0":"post-44241","1":"product","2":"type-product","3":"status-publish","4":"has-post-thumbnail","6":"product_cat-ebook-en","7":"product_cat-sonya-m-pauls-ll-b-en","8":"product_cat-fyb-2014-en","9":"product_tag-fundraising-en","10":"product_tag-pauls-en","11":"product_tag-sonya-m-en","12":"product_tag-track-record-en","13":"product_tag-fund-manager","14":"product_tag-investment-period-en","15":"pa_sprache-english-3","16":"pa_sprache-german","18":"first","19":"outofstock","20":"taxable","21":"shipping-taxable","22":"purchasable","23":"product-type-variable"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Momentum in fundraising - a good track record is not everything - FYB Financial Yearbook<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.fyb.de\/en\/produkt\/momentum-in-fundraising-good-track-record-is-not-all\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Momentum in fundraising - a good track record is not everything - FYB Financial Yearbook\" \/>\n<meta property=\"og:description\" content=\"Just a few years ago, fund managers did not start planning the fundraising for their next fund until shortly before the end of the investment period. They could generally count on a high renewal rate from their existing investors, provided the existing fund did not experience quite significant performance declines. With a good performance, the remaining investors were added within a period of another six to nine months until the last subscription deadline. This environment has changed. Today, numerous other factors determine success in fundraising. The fundraising process has become much more professional in recent years, and not just because of the economic environment. General Partners (GPs) today need to be very good at both disciplines: both the investment business and the fundraising business. The success parameters in this sector are no longer defined locally but globally. In recent years in particular, investors worldwide have greatly reduced the number of their business relationships with private equity or venture capital funds (= general partners) and at the same time focused on them. There is a clear trend towards quality(flight to quality). However, even in this environment, many private equity and venture capital funds manage to get to closing in a focused and efficient manner. Others take much longer with a similar track record. Often, only small aspects, such as preparation or timing, determine whether a process maintains its momentum or collapses, extending the fundraising period. The preparation First of all, the preparation and proper placement of the fund product is important. In addition to a detailed analysis of the track record (nowadays also with regard to the underlying cash flows!), it is essential to present the strategy in a detailed and plausible way. The more complex and less comprehensible a strategy is (also against the background of the track record), the more difficult it becomes to categorize the product from an investor&#039;s point of view, also from an allocation point of view. The track record should meet the principles of relevance,attribution andverification. The brand strength of a GP and the need for a unique selling proposition (USP) has become very important. Many of the funds fall into the infamous &quot;just another buy-out fund&quot; category.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.fyb.de\/en\/produkt\/momentum-in-fundraising-good-track-record-is-not-all\/\" \/>\n<meta property=\"og:site_name\" content=\"FYB Financial Yearbook\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.fyb.de\/wp-content\/uploads\/2017\/07\/Pauls.png\" \/>\n\t<meta property=\"og:image:width\" content=\"334\" \/>\n\t<meta property=\"og:image:height\" content=\"298\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.fyb.de\/en\/produkt\/momentum-in-fundraising-good-track-record-is-not-all\/\",\"url\":\"https:\/\/www.fyb.de\/en\/produkt\/momentum-in-fundraising-good-track-record-is-not-all\/\",\"name\":\"Momentum in fundraising - a good track record is not everything - FYB Financial Yearbook\",\"isPartOf\":{\"@id\":\"https:\/\/www.fyb.de\/en\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.fyb.de\/en\/produkt\/momentum-in-fundraising-good-track-record-is-not-all\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.fyb.de\/en\/produkt\/momentum-in-fundraising-good-track-record-is-not-all\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.fyb.de\/wp-content\/uploads\/2017\/07\/Pauls.png\",\"datePublished\":\"2017-08-01T02:11:36+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/www.fyb.de\/en\/produkt\/momentum-in-fundraising-good-track-record-is-not-all\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.fyb.de\/en\/produkt\/momentum-in-fundraising-good-track-record-is-not-all\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.fyb.de\/en\/produkt\/momentum-in-fundraising-good-track-record-is-not-all\/#primaryimage\",\"url\":\"https:\/\/www.fyb.de\/wp-content\/uploads\/2017\/07\/Pauls.png\",\"contentUrl\":\"https:\/\/www.fyb.de\/wp-content\/uploads\/2017\/07\/Pauls.png\",\"width\":334,\"height\":298},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.fyb.de\/en\/produkt\/momentum-in-fundraising-good-track-record-is-not-all\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.fyb.de\/en\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"FYB Shop\",\"item\":\"https:\/\/www.fyb.de\/en\/shop\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Momentum in fundraising \u2014 a good track record is not everything\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.fyb.de\/en\/#website\",\"url\":\"https:\/\/www.fyb.de\/en\/\",\"name\":\"FYB Financial Yearbook\",\"description\":\"For Your Business\",\"publisher\":{\"@id\":\"https:\/\/www.fyb.de\/en\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.fyb.de\/en\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.fyb.de\/en\/#organization\",\"name\":\"FYB Financial Yearbook\",\"url\":\"https:\/\/www.fyb.de\/en\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.fyb.de\/en\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.fyb.de\/wp-content\/uploads\/2020\/06\/logo.svg\",\"contentUrl\":\"https:\/\/www.fyb.de\/wp-content\/uploads\/2020\/06\/logo.svg\",\"caption\":\"FYB Financial Yearbook\"},\"image\":{\"@id\":\"https:\/\/www.fyb.de\/en\/#\/schema\/logo\/image\/\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Momentum in fundraising - a good track record is not everything - FYB Financial Yearbook","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.fyb.de\/en\/produkt\/momentum-in-fundraising-good-track-record-is-not-all\/","og_locale":"en_US","og_type":"article","og_title":"Momentum in fundraising - a good track record is not everything - FYB Financial Yearbook","og_description":"Just a few years ago, fund managers did not start planning the fundraising for their next fund until shortly before the end of the investment period. 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