LP Pipeline Stages

Understanding pipeline stages enables stage-appropriate messaging, conversion metric tracking, and realistic fundraising forecasting.

Expanded Definition

Pipeline stages include: Discovery (awareness creation, initial outreach), Qualification (mandate fit check, ticket size alignment), Engagement (first meetings, pitch delivery), Diligence (deep evaluation, DDQ, references), Commitment (IC approval, legal negotiation), and Deployment (capital calls, ongoing relationship). Each stage has distinct activities, timeframes, and conversion metrics.

Stage progression is non-linear—LPs often loop back (diligence raises questions returning to engagement), pause (IC schedules delay commitment), or exit (discovering disqualifying factors). Effective pipeline management tracks: stage conversion rates (% advancing), time in stage (velocity), and exit reasons (why LPs don't advance).

Signals & Evidence

Pipeline stage indicators:

• Discovery: Outreach activity, intro requests, conference meetings
• Qualification: Initial call completed, mandate discussion, ticket size conversation
• Engagement: First meeting set/completed, pitch delivered, follow-up questions
• Diligence: DDQ requested/submitted, reference calls underway, IC memo drafted
• Commitment: IC meeting scheduled/completed, legal review started, terms negotiated
• Deployment: Commitment letter signed, subscription docs executed, first capital call

Decision Framework

• Stage progression: Define clear advancement criteria for each stage transition
• Conversion tracking: Monitor stage conversion rates to identify bottlenecks (30% first meeting → second meeting is normal; 10% signals problem)
• Velocity management: Track time in each stage; extended stays signal issues requiring intervention

Common Misconceptions

"Pipeline is linear" → LPs often loop back, pause, or skip stages based on circumstances. "First meeting = serious interest" → Many LPs take exploratory meetings; advancement to diligence is key qualification. "All LPs progress at same pace" → Velocity varies dramatically by allocator type, decision structure, and check size.

Key Takeaways

• LP pipeline stages (Discovery → Qualification → Engagement → Diligence → Commitment → Deployment) provide framework for tracking fundraising progress
• Stage conversion rates and velocity metrics enable bottleneck identification and realistic forecasting
• Stage-appropriate messaging matters—discovery needs awareness; diligence needs evidence; commitment needs clarity