What Should a Fund Pitch Say About How Investor Capital Will Be Used?

A fund pitch should show where investor capital is expected to go and how each investment fits the stated strategy. Investors need to understand how commitments become investments, what authority the manager has, and how they will hear about the use of their capital.

Describe the Investment Process

Explain the investments the fund may make, the criteria for assessing opportunities, and who approves them. Describe how the manager finds and evaluates deals, the investment team's role, and how the fund handles an opportunity outside its usual process. A specific example can make the steps clearer.

Distinguish the fund's process from its aspirations. A target or plan does not guarantee that capital will be invested on a set schedule or produce a particular result. State what is known, what is estimated, and what depends on opportunities the manager has yet to identify. A clear plan gives investors a basis to assess the fund's expectations.

Explain Structure and Costs

Describe how commitments and contributions work, how capital reaches portfolio investments, and which fund or investment vehicles are involved. Explain the manager's discretion and its limits. Identify fees and expenses that affect the amount available for investments, along with any other costs. If the fund may use co-investment vehicles or other structures, explain how they work and where investors can find the governing terms.

Discuss material risks in relation to the proposed use of capital. Explain how liquidity, concentration, borrowing, or delays could affect the fund when relevant to its strategy. Specify what information investors will receive and how the manager will report changes to deployment plans. Investors should consult their attorney or CPA about legal and tax treatment.

Make the Materials Easy to Review

A concise overview should give investors enough information to decide whether to request a fuller presentation. A longer deck can cover the team, investment process, risk management, operations, and service providers, with examples and plans in greater depth. Keep figures and descriptions consistent across the overview and deck, and ensure claims match in follow-up conversations. Make supporting documents available when an investor begins diligence.

Investors may ask how the track record was produced and how it relates to the proposed fund. Describe the team's experience and responsibilities without suggesting past results guarantee future outcomes. Be ready to explain the strategy's assumptions and what might cause the fund to change course.

Connect Capital Use to Investor Communication

Tell investors what they will receive after closing: reporting frequency, portfolio information, and updates about delays, losses, or changes in plan. Good reporting lets investors compare actual activity with the stated strategy. If withdrawals or distributions may be limited, explain those terms clearly before asking for a commitment.

For presentation context, review how to make a clear case for family office investment. See also the portfolio details investors expect in updates, fund terms to explain before a commitment, and how reporting and investor rights are negotiated.

This document can range anywhere from 10 to 100 pages in length and reviews the management team, unique edge in the marketplace, investment process, risk management procedures, operations, service providers, investment examples, and future plans.

Sources: The Single Family Office. Informational only, not financial, legal or tax advice.