How do fund managers use Preqin to find institutional LPs?
Short answer
Fund managers use Preqin as a paid database to build a target list of institutional LPs, filtering by investor type, strategy and region. The list is only a starting point. In my experience institutions want a proper platform with audits, administrators and counsel, and they respond to relationships. Many managers talk to securities counsel before outreach.
What a database list can and cannot do
Preqin is a subscription database of alternative asset investors. Fund managers typically use it to build a target list. You can usually filter by investor type, such as pensions, endowments, foundations, insurers and family offices. You can also filter by the strategies and regions an investor says it favors. Many profiles list contacts and past fund commitments, though coverage varies by plan, so check what yours includes.
I want to be straight with you. My videos do not walk through Preqin screen by screen. What I can share is what I have seen and heard from managers who actually raised institutional money. A list tells you who exists. It does not tell you who will say yes.
Why the relationship still comes first
Gideon spoke on one of our panels about raising capital, whether you are a new sponsor raising a couple hundred thousand dollars or an experienced one raising from institutions. His point was simple. Raising capital is relationship driven. That applies to a name you pulled from a database just as much as to a name you met at a conference.
Gideon explains why raising from individual and institutional LPs comes down to relationships and constant communication.
So I treat a database as a research tool. Use it to find who fits, then look for a warm path in. Past investors, service providers, other managers and mutual contacts are all better doors than a cold email.
- Filter by investor type and the strategy you actually run.
- Look at the funds they have backed before and how big those funds were.
- Rank the list by fit, then research the top names by hand.
- Find a warm introduction before you reach out.
The platform test institutions apply before they wire a dollar
John built a large real estate credit platform, and he told me something I agree with. Institutions started knocking on his door once his business was run diligently. He never went out looking for them. But when they came, he did not have an audit, third party advisers, the right legal counsel or a fund administrator. He had to build all of it.
John describes the audits, big law firms and fund administration he had to put in place before institutions would invest.
Summary and key takeaways from this video
"No institutional will invest with you without an institutional platform, and you have to be able to pass there."
That matters for how you use any LP database. If you email fifty pension consultants and you cannot pass their third party due diligence, the list did nothing for you. John said he spent money he did not have, including about $100,000 to start audited financials on a quarterly basis. His view was blunt. If you will not spend the money and the time, you will never raise institutional capital.
Before you send a single email
Many managers talk to a securities attorney about who they approach and how they describe their fund.
At Family Office Club we have run this community for 18 years, and the managers who do well treat the data as step one. Step two is getting the platform ready. Step three is earning trust one conversation at a time.
From the Family Office Club stage
Plan for volume before you build your list. At Capital Con each year, managers tell us they still have to go after 200 to 300 leads to find the 15 that will invest in their new private equity or hedge fund. A Preqin export of a few dozen names will not get you there. Also check your timing. At the startup phase you are usually not targeting institutions at all. In many cases a manager may need roughly 70 to 100 million, sometimes a couple hundred million, before institutions become realistic. Until then, friends, family, angels and family offices are the middle ground.
"Despite all of that, we hear consistently at Capital Con each year that they still have to go after 200 to 300 leads to find the 15 that are going to invest in their new private equity fund client or hedge fund client."
"At the startup phase, you're not targeting institutional investors. You really need to get to usually 70, 100 million, maybe even a couple hundred million before you have institutional around. A lot of people start with friends, family, angels, private investors, and then the family office space is really the middle ground."
Facts and figures
- John said he spent about $100,000 to begin audited financials on a quarterly basis while his fund was still small.
- John started with $100,000 deals using his own and his family's money before institutions came to him.
- Gideon described raising from both individual and institutional LPs as relationship driven, from a couple hundred thousand dollars up to multi-millions.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: How to Build a $1B Real Estate Platform | John Lettera & Richard C. Wilson, Top Capital Raising Strategies and Tools from Founders, Fund Managers & Family Offices. 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 outreach and solicitation rules, fund offering structure and institutional service provider requirements. Do not use AI to write your own legal agreements.
Where to start
- Decide which institutional LP types fit your strategy and fund size.
- Check what your database plan actually includes before you pay.
- Build a short ranked list and research each name by hand.
- Close the gaps in your platform: audit, administrator, counsel and reporting.
- Many managers talk to securities counsel about their outreach plan, then ask for warm introductions.
Follow-up questions
Is Preqin the only way to find institutional LPs?
No. Other databases exist, and many managers also find LPs through referrals, consultants, conferences and other managers. Gideon's point on our panel was that raising capital is relationship driven, whatever tool you use.
Do I need an audit before approaching institutions?
John said institutions that came to him expected audits, third party advisers, strong legal counsel and a fund administrator. Many managers talk to securities counsel and their service providers about what makes sense for their fund.
Should a first-time manager target institutional LPs at all?
It depends on your track record and platform. John started with $100,000 deals using his own and his family's money and grew from there. Many managers build up before institutions become realistic.
Related questions
- How do I raise capital from a foundation?Start by checking whether your fund is large enough.
- What role do investment consultants play in institutional allocations?Investment consultants advise institutions like endowments and pension funds on which managers to hire.
- What is a separate account versus a commingled fund for institutions?A separate account is a portfolio run for one institution, with terms negotiated for that investor alone.
- What is the minimum check size for institutional investors?There is no single minimum check size for institutional investors.
Work through it with the how much to raise calculator. See all institutional investors resources.