How are LPs vetted?
During fundraising, how do funds vet their LPs? I imagine there are criteria for what kind of LPs they won't take money from, like if they are from a sanctioned country individual.
What else goes into these decisions and are there published criteria I can look up anywhere?>
This is where KYC and AML checks come in.
Other factors for who to let in or not may include - is the LP a strategic partner beyond just financial capital (co-invest, warehousing, etc.), are they a "stamp of approval", how much $ are they bringing in, can they scale over time with the firm as AUM increases, are they a respected thought partner / do they have some technical or sector expertise, are they a LT investor or not, do you think they'll be a huge pain in the ass, prior relationship or not, etc. Then of course GPs can make their decisions on alignment of values, not wanting to take capital from a certain country, things like that.
To your last point on alignment of values, have you seen any funds publish these decisions anywhere? I'd imagine it would be a good PR move for some to do so.
No they don't publish it because it makes it harder to change their stance if they have an attractive potential LP, there's also not typically a set list.
From a PR standpoint I don't see how it would be a good move? They're going to say we don't take money from terrorists, money launderers or North Korea? Saying that is just odd
Ut modi excepturi dignissimos distinctio ipsum est. Ipsa ab qui enim molestiae ullam alias ut et.
Aspernatur nihil occaecati sed voluptas aut. Rerum quia qui pariatur repudiandae dolor aut eaque. Nihil quas exercitationem vitae dolorum sint.
Quibusdam voluptatum corporis eum animi. Corporis quam quasi labore qui corporis laudantium modi. Dolore et eveniet aliquid omnis cumque iusto nam recusandae. Ut eum similique officiis debitis quis dolor.
Expedita libero laboriosam dolorum sed doloremque atque. Molestias repellat rerum assumenda culpa. Quia repellendus nobis fugiat harum illo magni dolor. Perspiciatis voluptatem aperiam cum rem enim voluptatem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...