2019 Establishing the Next Generation of Private Equity Firms Symposia Summary

Establishing the Next Generation of Private Equity Firms, is a series of in-person symposia dedicated to discovering, training and empowering a new generation of diverse asset managers. In 2019, NAIC hosted symposia in three cities – Washington, DC; Los Angeles, CA; and Chicago, IL.

Below is a synopsis of what the participants learned

Attendees were surveyed pre-event and post-event on their knowledge and beliefs about the private equity industry, and the complexities of launching a new private equity firm. Underwritten by the U.S. Minority Business Development Agency (MBDA) in 2019, the Next Generation Symposium is an unprecedented premier educational platform dedicated to empowering a new generation of diverse industry professionals to effectively and successfully launch new firms and raise institutional-grade funds.

What Does the Next Generation of Private Equity Firms Look Like?

Demographics – Pre-Event Survey

Where are they in Their Private Equity Journey?

Journey Progression – Have you launched an equity firm?

Nearly 25% of those respondents who do not currently have an active PE fund intend to launch within six months, and 63% will premiere their enterprises within the coming year.

74% of respondents have fundraising plans between $10 million – $250 million.

Foundational Understanding of Impact – Before and After

Partnerships and Involvement – Before and After

Do you plan to launch your fund as the sole fund manager or select a partner or set of partners?

Nearly 9 out of 10 of those who completed the surveys intend to have partners in their PE endeavor. Growing 33% from the pre to the post event survey is the percentage of respondents who would like to work with a set of partners versus having only one. 28% of post-event respondents said that attending the symposium changed their view on partnerships.

In launching your fund are you also prepared to take an active role in the management of an acquired business?

The overwhelming majority of respondents want to be active in the firms they acquire. This desire changed very little (4%) from the pre to the post survey indicating the attendees’ wish to immersed and involved.

Operational Understanding – Before and After

The registrants possessed a very strong knowledge of investment analysis prior to attending the symposium; however, pronounced knowledge gaps existed in their understanding of back-office management and 3rd party providers. Following the event, the percentage claiming to have a ‘very good/good’ understanding of all three areas leapt to 70% or higher. In fact, looking at top 2-box performance scores (very good/good), knowledge of third-party service providers (87%) and back-office management (74%) tops investment analysis (72%) thus demonstrating the prodigious amount of learning that occurred during the sessions.

PRE-EVENT: Do you have a thorough understanding of fund operations including?

POST EVENT: Having attended the symposium, how would you now describe your understanding of the following:

Top Considerations – Before and After

Prior to Attending: Registrants identified ‘attracting capital’ as their paramount consideration. However, after attending the symposium, ‘assembling the right team’ ascended into the top-ranking slot. Comparing pre-event to post-event concerns, ‘identifying key differentiators’, ‘culture’, and ‘lifestyle impact’ moved up the ladder of concerns.

What are the most important considerations for starting a private equity fund?

Money on the Mind – Before and After

Pre and Post event, respondents leaned toward individual investors and public/private organizations to raise money for their firms. Noticeably, in the post-event survey, the percentage of respondents identifying these two methods increased by an average of 16 percentage points. All other capital-raising methods fell from prominence from the pre to the post study. It can be assumed that attending the event crystalized for attendees the most viable avenues to raise funds.

What are methods likely to be used to raise capital?

Symposium Sentiments

Overall Star Rating

How Much Did Attendees Enjoy the Symposium?

100% of attendees said that they would SEEK OUT ADDITIONAL SUPPORT AND RESOURCES from the NAIC

100% of attendees said that they would ATTEND ANOTHER NAIC SYMPOSIUM covering additional topics

95% of attendees said that they would ATTEND A NAIC SYMPOSIUM covering similar topics at a deeper level

85% of attendees said that they would HIRE THE SERVICE PROVIDERS that delivered content during the symposium

Net Promoter Score (NPS): 9.74

NAIC Next Generation Symposium attendees are highly likely to recommend the NAIC Next Generation of Private Equity Firms Symposiums to friends and colleagues.

"This event was the crash course I needed for taking the next step in my career as a leader in this space. I feel confident about the next few steps in launching our platform and evaluating all front office, middle office and back-office processes that we need to be successful."

"Very informative, intense and included presenters that were very generous sharing their time, knowledge and experience."

"This symposium was a great beginner's guide on the ins and out of starting a new fund. It exposed me to service providers and partners who are aligned with my interests and are genuinely willing to help. Above all it was eye-opening and incredibly educational - it helped me identify blind spots and possible solutions to fix them."

"The NAIC Next Generation Symposium was certainly helpful in providing an overview of the process for launching a fund. We would highly recommend this event for investment teams in their early days, and we thank the NAIC for this much needed, and much appreciated program."

"This was an absolute game changer for me. Turbo-charged my efforts and vastly expanded my network. I see clear a path to the finish line that was previously quite blurry."