The benefits of making yourself heard

Sensing that I was about to respond with my reasons, the GP went on the offensive. "A lot of your speakers participate in your events because it puts them in front of LPs, but given our relatively (compared with private equity) smaller fund size, we have no problem with fundraising," he argued. 
A good point and something that is perhaps worth discussing in detail in the future – the diversity of the fundraising process between different kinds of GPs. While the mega buyout funds are looking for the $300 million checks from sovereign wealth funds or state pension funds, venture capitalists are happier getting $20-$30 million from university endowments or technology firms. Institutional investors of all sizes attend our event, but it was clear that the fundraising angle wouldn't appeal in this case.

So I told the GP there are two main reasons that he should participate. First, it will be beneficial for him to share with an audience his firm's take on the opportunities in the market. As much as everyone hates to admit this, there is a bit of a herd mentality within the business. Discussing the trends, challenges and opportunities will help focus on key issues that the industry can work together on.

Second, and perhaps more importantly, top GPs like himself should show their leadership within (and outside) the private equity and venture capital community. The industry has become too big to be ignored. Private equity deals are dominating the financial pages, while venture capitalists are acknowledged as the brains behind the tech gurus working for NASDAQ-listed companies. Senior partners at buyout firms have basically evolved into roles not dissimilar from those of CEOs at Fortune 500 companies.
The need to communicate outside your own staff, portfolio companies and limited partners has become imperative. Private equity has been misunderstood in the past and it is up to the industry as a whole to make sure this doesn't happen in the future. An open forum is needed for leaders to come together and make their voices heard – to the industry and to politicians, government officials, corporate executives and the media, all of whom also attend our events.

This is trend has already taken root in the West and its time Asian GPs followed suit, for their interests and those of the industry.

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• Topics
• Fundraising
• LPs
• CIC