Someone recently asked me what type of investors we have in our fund; that is, are they mostly pension funds, institutions, individuals, etc. Although I had a vague idea, it sparked the idea for this post. So, I went through our investor register, talked to a few other GPs and LPs, and came up with the following list of potential investors in a private equity fund:
Fund raising is all about contacts, marketing and reputation. The investor constituency will reflect the areas of capital raising strength in the team. Some funds benefit from friends at large institutions, some are supported by religious contacts, some are even just anchored by one major wealthy individual. These are the types of investors in private equity funds.