The New Dealmaker Component: LP-GP Relationships

Dean Schaffer was recently featured in Real Deals Magazine’s Special Feature on LP-GP relationships where he examined the key drivers of successful LP-GP relationships.

The pandemic, increasingly demanding regulatory requirements, and sophisticated investment strategies have dramatically altered the world of alternative investments. To succeed in this new landscape, LPs and GPs must forge closer and stronger ties, says Dean. He explains how GPs benefit from strong LP relationships by gaining access to better funding and a more intimate understanding of LP needs. Meanwhile, LPs profit from partners that provide them access to exclusive deals, allowing them to deploy their capital and receive outsized returns. According to Dean, a high level of communication and reporting transparency is key to maintaining and developing these relationships to ensure both parties can grow together.

“I’ve seen LPs tell GPs about CapAssure, our capital administration technology solution that helps GPs manage complex waterfall calculations and GP carry allocations. The GP benefits from this advice because they become more efficient at managing their business and have a better understanding of what the LP community is looking for. The LPs benefit because they have greater reporting, increased transparency into the fund, and a more efficient fund manager. It’s a win-win,” explains Dean.

Read the full article here or by by downloading the PDF below.