GPs Share Strategies on Building Stronger Investor Relationships

Traditional and alternative investments are undergoing major changes, meaning general partners have to respond more quickly to opportunities, be more adaptable and meet growing expectations when it comes to transparency, visibility and data.

In response Juniper Square, which provides support for general partnerships and limited partnerships to better connect, manage fundraising and scale operations, released its report, “2022 Executive Survey Series: Building Investment Partnerships.” As the report title indicated, the findings noted GP strategies and requirements when it comes to building successful relationships with investors.

The first insight was that transparency is a must when it comes to striking and maintaining successful GP-investor partnerships. Factors supporting transparency included security of data and systems, accurate and timely delivery of partnership notices and a holistic record of, and view into, investors’ information.

The second key insight involves the of technology to take account of increasing investor demands and rapidly changing market conditions. The Juniper Square survey reported that 58% of GP respondents said they use customer relationship management systems to keep track of investor interactions. Meanwhile, more than 71% of GPS reported integrating their CRM system and investor portals. Vendor selection is also important for technology success.

Finally, Juniper Square found that the highest-performing GPs shared more data insights (such as performance trends) and tend to be more likely to outsource administrative activities.  “Research signals that the industry is moving towards digitally-enabled transparency,” the report concluded. “GPs embracing this trend today are seeing a measurable competitive advantage over late adopters.”