Growth Equity and Private Credit Investor Mandate Interview
Growth Equity Private Investor Mandate Interview
Capital raisers who want to see how a private markets investor describes their mandate, and investors who want a reminder about due diligence.
What stood out
- Two pools, two strategies. Greg manages one pool for growth equity and another for yield, such as private credit and factoring. Each pool has its own check size and deal type.
- Check sizes differ by pool. On the equity side, checks range from 1 to 5 million. On the credit side, they range from 10 to 20 million.
- Co-investment is preferred. Greg prefers direct co-investment deals over fund investments. He likes to follow someone into a deal, and sometimes to lead.
- Distressed debt gets more attention. During the coronavirus period, his focus moved toward distressed debt co-investments. He also began looking at energy, but only with larger fund groups where he has conviction in the manager.
- Due diligence can save money. Greg advises investors to study the numbers, ask for audited financials and not be swayed by a big opportunity. In his view, the time spent is worthwhile and can save money.
What this talk covers
Greg runs two pools of capital for clients. One targets growth equity and the other targets yield, such as private credit and factoring. Equity checks run from 1 to 5 million, usually as part of a syndicate. Credit checks are larger, from 10 to 20 million. Most deals are in the US, with a few in western Europe.
The interview was recorded during the coronavirus period and shows a shift toward distressed debt co-investments and energy through larger fund groups. Greg still likes growth equity businesses that are EBITDA and cash flow positive, but wants sellers to accept lower valuations. His main advice is to do detailed due diligence and ask for audited financials.
Facts from this talk
- Greg runs two dedicated pools of capital, one for growth equity and one for yield strategies such as private credit and factoring.
- Equity checks range from 1 to 5 million and credit checks range from 10 to 20 million.
- Richard C. Richard says 20 to 30% of guest comments in his interviews stress strong due diligence.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: Growth Equity Private Investor Mandate Interview. 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 syndicate co-investment structures, private credit documentation and investor eligibility rules. Do not use AI to write your own legal agreements.
Worth quoting
"Do your due diligence, go into the detail, look at the financials, ask for audited financials if there are any."
"Again, just look at the numbers, spend some time studying the investment, and go into the detailed side of the investment."
"Our check size is anything from 1 to 5 million on the equity side."
Related questions
- How do I close a funding round?I close a funding round by focusing on investors who fit the opportunity and moving each interested prospect through clear, consistent follow-up.
- What documents do investors request during due diligence?Prepare a clear, organized package covering your operations, investments, compensation, team, and track record.
- How do I raise capital for my business?I raise capital by building a repeatable system for attracting the right investors, establishing credibility, and developing relationships before asking for money.
Questions about this video
What check sizes does Greg invest?
On the growth equity side, his checks range from 1 to 5 million. On the credit side, they range from 10 to 20 million.
Where does Greg invest?
Most of his deals are in the US, with no particular region. He has also done a few deals in western Europe.
What is Greg's main advice to investors?
He says to do your due diligence in detail, look at the financials and ask for audited financials if there are any. He says this time is worthwhile and can save money.
Put this into practice with the investor meeting follow-up checklist. See all investor mandates resources.
