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Getting the most out of Private Markets Databases

Three keys to a standout profile

With the proliferation of private markets databases, chances are that your firm and fund have a profile or two whether you’ve built them yourself or not. If you read our recent whitepaper, Achieving Cruising Altitude: How to tap institutional capital to fuel growth, you understand the value of sharing data on private markets databases – it’s an effective way to get information and data about your fund in front of interested LPs and their consultants without extensive allocation of time and resources.

But what does your database presence say about you?

As more investors are filtering, screening, and creating shortlists from these databases instead of issuing open RFPs, your database profiles become the first thing many investors see about you. In an industry where first impressions count, it’s important to make sure that your database profiles represent your firm and fund in the best light possible.

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There are three key areas of focus that can set your private markets database profiles apart from the crowd: 

Thoroughness when building a profile and contributing to a database is important because it demonstrates to LPs that they can expect attention to detail and transparency from you as a GP in their portfolio. Your database presence will be seen by LPs as an extension of your marketing and IR potential. Think of it an audition, not as a burdensome task. Sharing both qualitative and quantitative data on your firm, can help to generate inbound interest for your next fund as investors search for a good fit and solid performance.

Accuracy of your database profiles seems like an obvious best practice, but because private fund managers are sometimes unwilling to share data directly, it is sourced from alternative methods, sometimes resulting in inaccurate data existing on databases. The benefit of working with databases that rely on manager-contributed data is that you can ensure your firm and fund data is 100% accurate. Contributing data allows you to stay in control of what your database profiles say about your firm. Your narrative, history, investment strategy, and funds’ performance are all in your control. All this information is incredibly valuable to today’s data-driven LPs. And when they compare your fund’s profile against that of a competitor who is missing performance for their first two funds, it’s safe to say they’ll be more interested in talking to your firm.

Timeliness is crucial to any standout database profile, because a profile is only as valuable as its most current data. Consistent and timely reporting should be managed in tandem with your standard periodic reporting periods. As previously mentioned, database profiles are often the first impression an LP will have of your firm. And it could potentially be the last if they see stale data. In some cases, an out of date profile causes more reputational damage than not having them at all.

To learn more about how to effectively leverage private markets databases to scale your fundraising efforts with institutional investors, download the full whitepaper below.

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For emerging managers in private markets the most effective way to grow their firm is move up-market and fundraise from large institutional-quality investors. But accessing that capital is an incredibly challenging proposition.  

Managers today operate in the most competitive and robust market the industry has ever seen. Thousands of funds are competing for commitments from LPs who are more selective and data-driven than ever before. Adding to this challenge is the fact that only 1 in 4 institutional investors are even considering new GP relationships for their portfolios. Emerging managers are left fighting more competitors for a smaller slice of the pie.  

In this whitepaper, eVestment Private Markets explores how emerging managers can get an edge on their peers as well as larger established managers by leveraging technology tools and data to raise capital from institutional investors.  

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