Why do no LP's answer my deal emails?
I have what I deem to be a very strong deal with significantly outsized returns in comparison to the risk involved. It's a good size that would fit a lot of buckets for middle market or family office LP's.
I've sent out probably 200 emails to groups or contacts I have pulled from LinkedIn and guessed the emails correctly. I am negotiating a PSA without exclusivity so have not attached a deck but just mainly high level deal info. I have gotten maybe 7 responses and 3 calls out of it. I read so much on here (and know it) that people are twiddling their thumbs because the deals are shitty out there, so why am I not getting a response? Is it because I'm not including a deck? Do you guys get so many blind emails you just don't bother?
The three contacts I have had are all digging into it so the validation is there, but not sure why I am getting such a low hit rate and how to improve it. I know some of these groups would be interested but getting in direct contact with someone to listen to you is just impossible.
Based on the most helpful WSO content, here are some insights and actionable advice to improve your outreach and response rate:
Lack of Personalization: Sending 200 emails pulled from LinkedIn with guessed email addresses might come across as impersonal or spammy. LPs are inundated with emails, and without a personal touch or a warm introduction, your email might get lost in the noise. Consider leveraging mutual connections or referrals to make your outreach more credible.
No Deck Attached: Not including a deck could be a significant factor. LPs often want to see detailed information upfront to assess the opportunity quickly. While you may be negotiating a PSA without exclusivity, providing a teaser deck with high-level details (while protecting sensitive information) can help pique their interest.
Email Content: The structure and tone of your email matter. Based on WSO threads, emails that are too long, poorly worded, or lack clarity are often ignored. Keep your email concise, professional, and engaging. Highlight the key points of the deal and why it stands out.
Timing and Follow-Up: Timing plays a crucial role. If LPs are busy or overwhelmed, your email might be overlooked. Follow up strategically—perhaps a week or two after the initial email. Persistence, when done respectfully, can make a difference.
Noise in the Market: As mentioned in WSO discussions, LPs receive countless emails about "great deals." To stand out, you need to cut through the noise. This could mean emphasizing what makes your deal unique, such as specific metrics, market positioning, or a compelling story.
Validation and Credibility: While you’ve had three contacts digging into the deal, broader validation might help. If you can mention any reputable parties showing interest (without breaching confidentiality), it could lend credibility to your pitch.
Alternative Outreach Methods: Cold emails alone might not be enough. Consider supplementing your efforts with calls, LinkedIn messages, or even attending networking events where you can meet LPs in person. Building relationships often yields better results than cold outreach.
CRM and Process Management: Managing outreach to 200+ contacts can be overwhelming. Using a CRM tool to track responses, follow-ups, and notes on each contact can help you stay organized and improve your process over time.
Remember, even with a strong deal, breaking through the noise requires a combination of strategy, persistence, and relationship-building. If you’re not getting the desired response, tweak your approach and keep refining. Good luck!
Sources: Last time you didn't source a deal via email, Cold emails - what makes you answer?, How to raise a fund - what I know, and what I'm clueless about, Note to People Networking - Don't Copy & Paste Emails, The Best Networking, Cold Calling and Cold Emailing Posts on WSO
Can’t really give you any feedback without some details. Why don’t you give the anonymous internet your pitch? Show us what you’re putting in the email - nothing to lose with that hit rate lol.
Cold emails rarely work; a pre-existing relationship + a phone call is what gets people focused in my experience. If someone is going to allocate millions of dollars they want to know the person they are investing with, or have an equity broker involved who can vouch for them. It’s a tough sell for LP’s to tell their IC/principal, “hey I don’t know this guy but he cold emailed me with a great deal and after a couple weeks of talking to him, I really think we should give him millions of your dollars”.
It seems like it's more of a saving face thing which seems insane as you can always get to know someone and 99% of the time the brokers are a very loose connections anyways. Your job in acquisitions is to get deal flow, and if you are turning down a good deal because it wasn't put on a platter for you by someone you know, I would argue you're not doing your job. You can always vet the sponsor. Also the 3 people digging in are very legit funds, so it does work, just not sure why not more.
I’ve raised a lot of institutional JV money in my career. I agree with you that an email response of a “not for us” should happen a lot more, but it doesn’t, particularly from loose connections or cold emails. I’d follow up once or twice with those folks - if no answer, mark them down as a pass & less likely for future deals.
All that said, LPs get blasted with deals from sponsors non-stop, and they only have so much time / so many deals they can focus on at once. They also don’t always have money for every strategy, and are often focused on a relative basis vs other investments or asset classes. So our job as sponsors in charge of capital raising is to get a piece of their mind share - that happens through personal relationships and direct contact they requires them to actively ignore - like phone calls. Super easy and fairly guilt free to ignore emails, particularly from randos.
One last point - yes your hit rate on engagement is low, but not egregiously. For the deals I’ve sent to say, 50ish institutional LPs, largely get 10 asking for the underwriting, but in reality 3-4 seriously dig in and maybe 1 or 2 tour. That said, usually wouldn’t blast that wide, or went out in waves - didn’t want the rep of being the guy hitting on everyone at the bar. LPs want to feel special too.
From personal experience, almost every email I've gotten like that without a deck has turned out to not be a great deal once I started poking at the underwriting so I tend to not even waste my time anymore unless there is a deck
A deck helps. If it comes from a broker who consistently sends me quality deals its much better. I rarely look hard at anything direct unless there's a personal connection or I've met the person face to face before. Cold email is the equivalent of a random college kid Linkedin messaging for a job.
maybe try picking up the phone?
Do you think that would be more effective? I would imagine if I was an LP the last thing I would want is some random person cold calling me with a deal but maybe I'm wrong.
No don’t call LPs
That’s where the pre-existing relationship or equity broker matters. Won’t be a cold call then.
Call the acquisitions person. Say I didn’t hear back from you. Can we set up a time for me to introduce myself; my firm; and my deal.
In general blasting out cold emails to groups/LPs you don’t know is not going to produce results. You need to establish some sort of relationship with them
Hire and equity broker to make introductions.
Also - lps are not going to engage with out all the information.
You need to develop a reputation and be friendly with LPs.
I used to ignore 90%+ of emails that people sent me as an LP because I didn’t have time to read them all. I was constantly drowning in information so I normally wouldn’t open cold emails.
I get so much dealflow from GPs who reach out to me that I have to filter it first based on the relationship I have with the person or firm or those who have a soft intro to me. I have 24 hours in a day and only a certain amount to devote to looking at something fresh with someone who randomly guessed my email via linkedin. You also have no idea how many scumbags and con artists are clever to get money from individuals. Why would a family office give up their precious capital to you if they do not even know you? Or why would someone be prepared to jack up their career risk in an institution by pushing the deal?
My recommendation is to follow-up with everyone you emailed whether you closed the deal or not. If you do not close the deal just say something to the effect that "I recognize you did not respond but wanted to let you know I did not progress with the transaction. If there are similar high quality deals I will definitely let you know." If you do the deal let them know and then let them know how it is performing.
Will they read or response the emails? Maybe yes, maybe no. But people would notice if what you promise on an underwrite is what you deliver or you can overdeliver that promise. Spraying and praying rarely works and it definitely will never work if you drop them cause they did not get back to you.
It sounds like you’re doing a lot right in terms of targeting and reaching out, but it’s likely that a few tweaks could improve your response rate. One thing to consider is that people in these groups often receive a flood of cold emails, so they’re likely filtering them quickly. You may be facing a bit of email fatigue or skepticism unless you immediately stand out with something more compelling.
Not attaching a deck could be part of the issue. While keeping it high-level is a good idea initially, many investors want to see something more detailed upfront to evaluate the deal. It could also demonstrate that you’re organized and serious. Even if it’s not a full pitch deck, a one-page summary with key metrics and the structure of the deal could help spark more interest.
Additionally, think about how your subject line and first few lines of the email are structured. If you’re going for 200 cold emails, it’s easy for your message to get lost or dismissed. A more personalized approach might help—maybe referencing something specific about the recipient’s investment focus, or briefly highlighting the returns in a way that piques curiosity. Showing that you understand their goals and how this opportunity aligns with their portfolio can help increase your odds.
Lastly, don’t underestimate the power of follow-up. It can sometimes take a few attempts to get the right person’s attention. After the initial email, if they don’t respond, try sending a concise follow-up after a week or two—sometimes it just takes a reminder. If you haven’t already, consider leveraging warm introductions or referrals, as they’re more likely to get responses.
You’re definitely on the right path with your outreach, but dialing in the personalization, adding some upfront deal details, and keeping up with follow-ups might give you the bump you’re looking for.
Really great advice, this is helpful.
Im at a large LP, PM and I’ll give you feedback
Appreciate it, sending now.
Build a relationship first outside of any specific deal
Im not responding to a cold email with “outsized”, likely bullshit returns. The few times I have responded and asked for a call, the source tends to be an absolute chancer that hasn’t done their homework. Not only that but they tend to be insanely pushy to the point it becomes really fucking annoying. I’m not saying this is the case with you but likely their frame of mind. You need to find a way to meet them face to face
This is my experience exactly pretty much every time I give a chance to one of these "outsized" return deals
Post the email
Cuz we don’t know who you are and dont trust you.
First off, cold emailing someone for money is a losing strategy.
Second, maybe your deal isn't as good as you think it is
What are you doing sending cold emails? If you’re in this position, you should hopefully have a good enough network to go warm or even hot. At the very least try to find someone to introduce you over. This is not really how business is done at the high level.
.
Eos dolorum incidunt exercitationem tenetur eveniet eum qui. Labore aliquid sit natus architecto dolorem et iure asperiores. Sed quod qui minima porro illum nesciunt hic. Occaecati qui et sint qui ipsam id. Sit qui ipsam qui earum natus et ut quibusdam. Sed molestiae enim sed dolores hic.
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...
Autem sint dignissimos et cum. Sed itaque quae cum accusamus consectetur totam. Explicabo omnis quasi excepturi in. Non eos rerum molestiae dolor sequi consequatur quo voluptate. Blanditiis error odit et. Aperiam beatae qui laudantium maiores ipsum et.