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.
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.
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.
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.
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.
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.
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.
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