After several hundred meetings in 2023 with US pensions and their consultants, below are a few key...
Real Estate managers love meetings, but the feeling isn't mutual for investors.
To ensure a successful and efficient meeting, the following topics should be covered in the span of 45 minutes:
1. Investment Overview. The “what” is a summary including target asset classes, risk profile, target size, liquidity, etc.
2. Investment Rationale. The “why”: is it is a good time to invest now? Market data slides, commentary on fundamentals, etc.
3. Strategy. The “how” you plan to do it. Investment highlights for asset classes and geographies.
4. Team. The “who”. Organizational charts highlighting dedicated professionals, team bios showcasing career deal volume, etc.
5. Track Record. The “how well” shows performance data over the last 10 years, and for first time funds, leverages leaders’ past experience.
As you address the above points, don't forget the two basic frameworks listed below.
Make it personal. 95% of human decisions are based on emotion. Facts do not inspire. Know your audience. Use visuals. Beware of non-verbal communications. The above points can be packaged as a story of data with a soul. Create a story matrix that can be used to answer investor concerns. This matrix should include: a success, a failure, origin, and something fun.
Ask good questions. Managers spend too much time talking about themselves. Manage the discussion to ensure at least 50% of the introductory call is spent getting to know the investor's needs. Is there a gap in their allocation / manager roster? If there isn't a pain point, give the investor their time back and offer to keep them informed on your progress. Need a place to start? Ask: "What does a good partner mean to you?" It is a great question to determine alignment and understand priorities at the onset of the call. While equity capital markets are challenged, investors are still seeking differentiated products that meet their return objectives.
