Competitive Intelligence on Allocators
Gathering and analyzing information about what other GPs an allocator has funded, how those relationships evolved, and what patterns exist in manager selection.
Understanding allocator's GP selection patterns, reference GP relationships, and manager retention reveals positioning strategy and differentiation opportunities.
Expanded Definition
Competitive intelligence examines: funded GP characteristics (stage, sector, geography, fund size, team backgrounds), relationship longevity (one-time vs multi-fund relationships), selection patterns (what triggers commitment vs pass), value-add delivered by successful GPs, and negative experiences (manager turnover, poor performance, relationship breakdowns).
Information sources include: fund investor lists (when disclosed), co-investor observations, reference calls (both ways—understanding who allocator references and who references them), conference co-attendance, and LPAC memberships.
Signals & Evidence
Competitive intelligence indicators:
- Funded GP patterns: Observable characteristics shared across allocator's managers (emerging, established, sector-focused, generalist)
- Relationship tenure: Multi-fund re-ups vs one-time commitments indicating retention rates
- Selection criteria: Common themes in approved managers (track record depth, team pedigree, differentiation)
- Value-add preferences: What services/support funded GPs provided beyond returns
- LPAC memberships: Which GPs allocator joined LPAC for (strong relationship signal)
- Reference network: Who allocator asks about when checking references
Decision Framework
- Pattern identification: Analyze funded GP characteristics to understand allocator preferences and selection filters
- Positioning strategy: Differentiate from or align with successful GP patterns based on competitive landscape
- Relationship cultivation: Study value-add delivered by successful GPs to inform your own allocator relationship approach
Common Misconceptions
"Fund list = complete picture" → Public lists are partial; many relationships undisclosed. Combine multiple intelligence sources. "Success pattern = requirement" → Patterns suggest preferences, not rigid requirements; compelling stories can break patterns. "Same GPs = commoditized" → Allocators often maintain stable of preferred GPs while adding new relationships; pattern ≠ exclusion.
Key Takeaways
- Competitive intelligence reveals allocator's GP selection patterns, value-add preferences, and relationship stability through funded manager analysis
- Use funded GP patterns to inform positioning strategy—either differentiate or demonstrate alignment with success factors
- Relationship longevity (re-ups vs one-time) signals allocator loyalty and retention tendencies