Quantitatively speaking: how GPs are missing an advantage in their LP pitching
LPs are increasingly focused on the quantitative side of GP value creation during due diligence – looking to validate claims and understand portfolio strategies with data.
But are GPs using quantitative data to their advantage to evidence their value-add strengths in their pitch decks and presentations, to go beyond mere claims?
We sought to answer this question as part of a recent research project. Using 150+ GP pitch decks, sourced from eVestment Market Lens, we explored the prevalence of some of the industry’s most common and important quantitative metrics to see if GPs are backing up their claims with data.
The relative low frequency of these terms in our sample of GP presentation decks is surprising given the importance that investors have placed on quantitative data in recent years: in a 2019 eVestment Private Markets survey, 68% of LPs rated Loss Ratios as an important or very important metric in due diligence. PME was also viewed as important by a majority of LPs.
With the rise of data-driven due diligence, quantitative data and analysis has moved up the checklist for LPs. As a GP, featuring quantitative terms and data in your pitch deck can serve as a major differentiator with investors while also addressing their due diligence needs.