Winning LP Trust and Raising Capital Strategies for Private Equity Firms with Seth Auld

Welcome to The Private Equity Podcast, hosted by Alex Rawlings. Today’s guest is Seth Auld, VP of Portfolio Management and Deal Origination at Kompass Kapital. Seth shares his insights on building LP relationships, raising capital effectively, and the importance of sector specialization.

Breakdown;

[00:00] Introduction to Seth Auld and the episode’s focus on LP relationships and capital raising.

[00:29] Seth’s journey from running a family business to private equity, including roles in banking, consulting, and Fortune 500 agribusiness.

[03:14] Key mistake: Firms lack focus and fail to define a niche. Seth emphasizes sector specialization, strong operating partners, and avoiding transactional relationships.

[05:36] Seth’s approach to relationships: Be genuinely curious, ask questions, and build trust. He recommends How to Win Friends and Influence People.

[08:45] Importance of narrowing a niche and involving full-time, deeply engaged operating partners with relevant experience for target company size.

[11:09] What appeals to LPs: Strong track record, operating partner alignment, and financial commitment to the fund.

[13:58] Better LP engagement: Build relationships during the current fund, offer co-investment opportunities, and avoid transactional outreach.

[14:58] The challenge of direct outreach to family offices and the value of referrals, conferences, and relationship-building over cold solicitations.

[17:21] Closing the right deal: Avoid deal fatigue, revisit your original thesis, and maintain discipline. A broad deal pipeline ensures better options.

[20:38] Seth’s influences: Wall Street Journal, FRED economic data, trade magazines, and AI developments.

[21:07] Connect with Seth on LinkedIn for further insights.

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Thank you for tuning in!

Connect with Seth on LinkedIn here. 

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