Guides · Closing deals

How to Close a Committed Investor and Get Funds Wired

An investor says yes on a call. You feel done. Then weeks pass, questions pile up, and the wire never comes. I see this often at Family Office Club, and it usually traces back to work the raiser skipped before the yes.

This guide covers what to do between a verbal commitment and money in your account. It draws on what my guests and I have said on our panels and webinars. Many raisers talk to a securities attorney about their documents and wire steps.

Step by step

Step 1. Treat a yes as not closed

A verbal yes feels like a win, but the deal is still open. Kevin, a guest on one of my panels, told entrepreneurs not to drink their own Kool-Aid. Raising a million dollars on a $20 million valuation does not mean you are worth 20 million. The only time you are really drinking it is at a closing, when a check is passed and funds are wired. So keep working after the commitment. Set a target date, write down what is left, and keep a short checklist. Until the money lands, you are still in the process.

Step 2. Fix your structure and fees

Many deals stall because the structure does not feel fair. Family offices often watch fees closely and want value for what they pay. I have seen deals where the GP puts up very little of its own money and also charges a fee on the whole deal. Investors may read that as almost no skin in the game. A guest on our joint venture webinar said he skips acquisition fees and keeps one transparent number, because investors do not like a pile of acquisition, project management, development and disposition fees. Align yourself with the investor before you ask for the wire.

Step 3. Let them meet your finance team

A committed investor will often want to see who handles the numbers. Kevin shared that his worst experience came from letting an entrepreneur hire the finance people. Now he wants to meet the CFO, not just the CEO, and the team members who prepare the numbers. He ended up firing a CFO and finding a buyer for the company about a week before closing. Offer this access early. Put your CFO or finance lead on a call before the investor has to ask. It shortens diligence and builds trust.

Step 4. Keep your story focused

A scattered pitch gives a committed investor a reason to pause. On one of our webinars I described a simple mistake that I believe can cost firms a great deal in lost investor interest. A group says it works in five states and three strategies, and the story gets convoluted. People do not know what box to put you in. I know a group that buys one type of commercial real estate in one city in the Midwest. They closed seven deals in the fourth quarter. When you go back to your investor, repeat one clear strategy, one market and one target return.

Step 5. Build a real relationship

Closing is easier with someone who knows you. I tell people not to blast a database and play a numbers game. Use it to build real relationships, with a video call or a meeting in person. Kevin said it well when he repeated the word relationships three times. Between the yes and the wire, stay in touch. Remember what matters to the investor, answer questions quickly, and be the same person on every call. In my experience, investors often fund people they feel they know.

Step 6. Show how their capital is protected

Many investors want to see how they keep their principal. A panelist described an example aimed at investors who would not normally do an equity investment. In that example, an investor puts in 10 million, and after 24 months is described as getting 50% on the money, with principal said to be backed by jet aircraft engine parts at wholesale value. On the joint venture webinar, a guest said his partner wanted to reduce the risk to his own capital. Keeping it mattered more to him than a 40 or 50% return. Know what protects your investor and say it plainly.

Step 7. Take extra cash when offered

If demand is strong, do not turn money away by habit. Kevin said cash is fuel, and you never really have enough. When a round was oversubscribed in the last two weeks, he told his partner to take a little more so the business had fuel for that rocket ship. If a committed investor offers a bigger check, discuss it with your team before you decline. Extra capital can give you room when plans change. Many sponsors also talk to a securities attorney about how a larger amount fits their documents.

From my talks

Mistakes to avoid

• Celebrating a verbal yes and stopping the follow up before documents are signed and funds arrive.
• Stacking acquisition, management and disposition fees so the investor sees you have little skin in the game.
• Pitching several strategies in several states, which makes your value hard to understand.
• Keeping the CFO and finance team out of sight until late in diligence.
• Sending wire instructions by email without a phone check.

Key facts

• Family Office Club says it works with 112 investors through privateequity.com and plans to grow that to 250 investors this year.
• A group that buys one type of commercial real estate in one Midwest city closed seven deals in the fourth quarter.
• One panel example described an investor getting 50% on a 10 million investment after 24 months, with principal said to be backed by jet aircraft engine parts at wholesale value.

General education only. Not legal, tax or investment advice.

Talk to a securities attorney to explore options around offering documents, investor eligibility checks and fee and structure terms. Do not use AI to write your own legal agreements.

Questions about this guide

Related questions

• How do I create urgency without pressuring investors?Use real reasons to decide, like a closing date or a limited allocation, and say them once and plainly.
• What should I do when an investor goes silent?Change the channel before you send another email.
• How do I handle investor objections about my fees?Answer the objection directly and keep your fee structure simple enough to explain in one breath.
• How do I get an interested investor to commit?Find out what the investor wants and offer that, not what you need.

Use the family office fit check alongside this guide.