Throughout April, investors on Sterlinks offered us their thoughts on the best meetings they’ve had with investment managers. In turn, we put together a list of key takeaways for you to keep in mind as you prepare for your next investor meeting.
First, the absolute basics regarding content to cover in an initial investor meeting, usually with a presentation.
Below are some sections to include in a first presentation to an investor (as applicable to you).
- Executive Summary: Summarize the investment opportunity, including firm history, team (investment platform), high-level achievements and other highlights of the opportunity.
- Track Record: Recap your investment activity and performance to date. A table summarizing your portfolio(s) is best-practice here.
- Investment Opportunity: Provide an overview of the opportunity you are presenting, including macro/micro drivers and trends, favorable market positioning, unique aspects of your platform, etc.
Investment Philosophy: Succinctly describe the strategy that guides your investment process. This can include investment criteria, targeted asset characteristics and tactics.
Investment Process: Review key elements of your investment process, such as sourcing of investments, underwriting, financing, investment committee, asset management and disposition.
Pipeline: Characterize representative transactions either by describing actual opportunities in the pipeline or previous investments that resemble future investment activity your team may undertake.
Case Studies: Offer a sampling of historical investments that demonstrate your team’s skill and experience.
Offering Terms: Outline the essential points of your investment offering, such as the targeted return, commitment period/term, expected leverage, distributions and fees.
Team Biographies: Condense the bios of senior management team members into relevant experience and achievements. This level of detail can also be provided in an appendix.
Appendixes: Extra detail on any section can be provided in an appendix.
All of the above should be kept to a concise and bulletized format.
Next up: best practices for any investor conversation. Part 2 will address common wisdom for communicating with a potential investor.
Part 3 will get into the feedback that you probably never got from an investor.
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