Guides · Institutional investors
How to Get Meetings With Institutional Investors
Most people who ask me about institutional meetings are still raising from friends, family and private investors. That is fine. The goal is to get ready for the day a big investor shows up, so you are not caught flat-footed.
Here is the path I teach at Family Office Club. It draws on what I have said on my own videos and on a conversation with John, who built a large real estate platform. Check with your securities counsel on the legal side of any raise.
I will keep it practical.
- 1Match your target to your stage
- 2Finish your basic materials first
- 3Communicate like an institution
- 4Build the institutional platform
- 5Book meetings in person, not by blast
- 6Show up flexible with a unique offer
Step by step
Step 1. Match your target to your stage
Start by being honest about your stage. At the startup phase you are not targeting institutional investors. In my experience you often need to reach 70 to 100 million, maybe even a couple hundred million, before institutions are around. Most people start with friends, family, angels and private investors. The family office space is the middle ground. Some of those offices write middle sized checks, often 1 to 3 million, 5 to 10 million or 25 million and up, though this varies widely. They can allocate almost like an institutional investor on some level. Pick the group that fits where you are today, then aim a little higher.
Step 2. Finish your basic materials first
Before you ask anyone for time, finish the basics. I have found in capital raising that investors often take you only as seriously as you take yourself. You need a logo, a one-liner, a pitch deck and a one-pager. If you have not figured out the one sentence on why someone should meet with you, why would they take the time? In my experience, many family offices do not want to work with people who are rushed, impolite or only care about the next 30 days. Add genuine value first and listen.
Step 3. Communicate like an institution
Institutional quality shows in how you communicate. The leaders I see are professional communicators. They are responsive, they represent themselves well and they act well under pressure. You can wear a three-piece suit or a T-shirt and jeans. Be the authentic version of yourself and stay professional. Keep your strategy unique, clean and easy to understand. Skip the 80 page pitch deck and the teaser that is a massive essay in a Word document. Show conservative assumptions and aim to over deliver. Always aim a half notch above where you need to be.
Step 4. Build the institutional platform
If you truly want institutional money, you need an institutional platform. John told me that in his experience no institution will invest with you without one. Third party due diligence firms check you, and you have to pass their requirements. John brought in an auditor, large law firms, third party advisers and a fund administrator. He spent $100,000 to start audited quarterly financials when he was not making a ton of money. His advice was to overinvest in this once you are past 100 million of assets. Check with your own securities counsel on what applies to you.
Step 5. Book meetings in person, not by blast
Do not blast a list and hope. In my experience, the idea that 5% reply, 1% get on the phone and half of those convert rarely happens. These are busy investors. Meeting in person and building a relationship is what works. Look at what each investor invests in and what common connection you share. Check what city they are in and when you will be there next. Every time you buy a plane ticket, you can use a database to book another couple of extra investor meetings. Plant seeds and do things the right way.
Step 6. Show up flexible with a unique offer
Do not show up like a robot trying to sell one thing. Institutional quality means being agile, open minded and politely persistent. If you say take it or leave it on a GP and LP fund, you will lose people. Many sponsors stay open to different ways of working with an investor, and they talk to a securities attorney about how to structure those options. Stand out with a unique focus and a thoughtful, flexible approach. I also ask for an agenda before a call, and you should expect the same.
Step 7. Let your results pull them in
John said he never went out looking for institutional money. He started with $100,000 deals using his own and his family's money. That grew to 200, 300 and a million. Deals moved from the tri-state area to a national footprint. Then institutions started knocking, first about credit lines and later about investing. His view was that if you run a diligent and successful business, institutions often find you. That does not mean wait around. It means build a record, then be ready with the audit, advisers and administrators when the knock comes.
From my talks
"You always want to be a half notch above where you need to be when appealing for capital, because the capital will come in faster."
"No institution will invest with you without an institutional platform, and you have to be able to pass their requirements."
What I have said on this at our events
One thing I would add is to treat early meetings as practice, not as a final exam. I have said that the most important thing is to get momentum and get the investor meetings, even if they turn out to be the wrong investors. You learn, then you focus on a different type of investor and find ways to get in the room again. Each conversation gives you feedback to dial everything in. Also, having the due diligence materials institutions require, like a questionnaire, helps even with high net worth investors who do not know what to ask.
"Like one of the most important things is just get momentum and just get the investor meetings, even if it's about the wrong investors and you learn, okay, let's focus on a different type of investor and just figure out ways to get in the room and get those meetings. And you can get feedback and dial everything in, you know, based on what they say in those meetings."
"For example, nobody raising capital $50 ,000 at a time that I know of has a master due diligence questionnaire, but those investors ask all the time, what else should I be asking? I don't know what I should be asking next in my due diligence. Well, having what all the institutional investors require would help you at that high net worth level."
Mistakes to avoid
- Targeting institutions at the startup phase instead of friends, family, angels and family offices.
- Blasting a database with one blanket email and hoping for a reply.
- Sending an 80 page pitch deck or a long Word document essay as your teaser.
- Skipping professional advisers and a strong operating platform, then expecting institutions to invest.
- Walking into a meeting with one take it or leave it structure.
On the record
- I say you usually need 70 to 100 million, maybe a couple hundred million, before institutional investors are around.
- John spent $100,000 to start audited quarterly financials, even when he was not making a ton of money in his fund.
- Some family offices write middle sized checks, often 1 to 3 million, 5 to 10 million or 25 million and up, though this varies widely.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: Capital Raising FAQ Webinar, How to Build a $1B Real Estate Platform | John Lettera & Richard C. Wilson, Capital Raising Frequently Asked Questions Webinar, Becoming Institutional Quality | Ep. 17. Quotes come from the video captions, lightly edited for readability. Figures are the speakers' own estimates and experience.
General education only. Not legal, tax or investment advice.
Talk to a securities attorney to explore options around fund structuring options, side letters and co-GP and offering documents. Do not use AI to write your own legal agreements.
Questions about this guide
When can I start targeting institutional investors?
I say you usually need to reach 70 to 100 million, maybe a couple hundred million, before institutions are around. Before that, work with friends, family, angels, private investors and family offices.
What do institutions check before they invest?
John said third party due diligence firms review you and you have to pass their requirements. In John's experience that included things like audits, professional advisers and a fund administrator. Many sponsors ask a securities attorney what applies to them.
How should I use an investor database?
Use it to plan in-person meetings, not to blast emails. Look at what each investor invests in, which city they are in and when you will be there next. Then add meetings around each trip.
Related questions
- What is an operational due diligence questionnaire for fund managers?It is the written list of questions an institutional investor sends a fund manager before allocating capital.
- What does an institutional allocator expect in quarterly reporting?An institutional allocator expects reporting that comes from an institutional platform.
- What do endowments look for in emerging fund managers?Endowments want a manager who can win over a group, not just one person.
- How do university endowments allocate to real estate sponsors?Most university endowments put money into real estate through their alternatives bucket, which is a large share of their total portfolio today.
Use the investor meeting follow-up checklist alongside this guide.