Investor Qualification Criteria

Qualification prevents wasting resources on mismatched LPs—poor qualification leads to pipeline bloat with non-converting prospects.

Expanded Definition

Qualification criteria include: mandate fit (asset class, stage, sector, geography alignment), ticket size (LP check range matches fund minimum), decision timeline (LP cycle aligns with fundraising schedule), access pathways (warm intro available or strong cold outreach case), decision readiness (LP actively allocating vs passive), strategic value (beyond capital: network, brand, referencability), and relationship capacity (GP has bandwidth to manage relationship).

Qualification rigor varies by fundraising context: oversubscribed funds can be selective; early fundraising requires broader qualification; anchor pursuit warrants investing in lower-fit LPs with strategic value.

Signals & Evidence

Qualification assessment factors:

• Mandate alignment: Stated IPS, observable allocation patterns, public comments about target investments
• Ticket capacity: LP AUM, historical commitment sizes, typical check range
• Decision timing: Current fundraising activity, recent commitments signaling pacing
• Access routes: 1st/2nd degree LinkedIn connections, co-investor relationships, shared service providers
• Strategic value: Brand name recognition, strong reference potential, valuable co-investor network
• Bandwidth fit: Relationship intensity required matches GP capacity to deliver

Decision Framework

• Qualification scoring: Weight criteria (mandate fit + ticket size are must-haves; strategic value and access are nice-to-haves)
• Threshold setting: Define minimum qualification score for pursuit; adjust by fundraising stage (early = lower threshold; late = higher)
• Disqualification triggers: Hard no's (mandate conflict, impossibly small ticket size, zero access pathway) prevent resource waste

Common Misconceptions

"All LPs are worth pursuing" → Resource constraints require prioritization; poor qualification dilutes focus on high-probability targets. "Mandate fit is binary" → Fit exists on spectrum; clear alignment is ideal but edge cases can convert with compelling thesis. "Qualification is permanent" → Mandates evolve, team changes, allocation capacity shifts; re-qualify periodically.

Key Takeaways

• Investor qualification filters for mandate fit, ticket size, decision timing, access, and strategic value—preventing resource waste on mismatched LPs
• Qualification rigor should match fundraising context (early = broader; oversubscribed = selective)
• Re-qualify periodically as allocator mandates evolve, teams change, and capacity shifts