What GPs Don’t Know About LP Risk Tolerance

Over the past few weeks, we’ve shared a collection of posts about the SuperReturn CFO/COO forum. Kyri Yiannakis, Ipreo Private Capital Markets’ EMEA Head of Client Development, was in attendance, and brought back a variety of insights and actionable takeaways.

We’re wrapping up our series of SuperReturn reports with the fourth and final dispatch from the conference. In the first part, Kyri discussed The Changing Role of the Private Capital CFO / COO, the second report covered the evolution of  Operational Due Diligence, and last week’s penultimate piece was about Four Emerging Trend for LPs.

Today’s final installment of SuperReturn CFO/COO forum recap reports concentrates on the risk tolerance of LPs and key focus areas of interest that GPs will need to consider, if they are not already.

Excerpt:

LPs recognise that the element of risk is what enables them to see attractive returns, but they want to know what the fund manager is doing to identify risk, what risks they have identified, and what they are doing to manage those risks. If the fund manager can provide a list of potential risks and a clear plan for managing them, they will have gone some way to addressing the LP’s concerns, increased their comfort, and built trust.

Read the entire report: What GPs Don’t Know About LP Risk Tolerance