Fundraising strategy breakdown: Quantitative by the Numbers and Qualitative with Emotional Intelligence

In the Rainmaker Podcast episode hosted by Gui Costin, the spotlight was on Lisa Harrow-Chodock, a distinguished figure in the realm of institutional capital fundraising. With a rich background that spans roles at Comvest Partners, Triago, Och-Ziff, and Duff & Phelps, Lisa brings an impressive two decades of experience in the alternative asset industry to the table. She is currently the Managing Director at Lateral Investment Management, where she plays a pivotal role in capital raising for the firm.

The episode kicked off with an introduction to Dakota Marketplace, underscoring its utility in streamlining the fundraising process for fundraisers by providing a unified platform to access a comprehensive database of institutional and intermediate investment opportunities. This tool is presented as a solution to the challenges of managing multiple databases and channels in the search for the right investment opportunities.

Lisa delved into her journey, starting from her initial foray into the finance world, focusing on illiquid valuation work, and evolving into a career centered around capital raising. She highlighted her focus on the U.S. lower middle market across various sectors such as buyout growth equity, venture, and secondaries. Lisa's passion for her work shines through as she talks about her love for the intricacies of fundraising and her success in executing over 30 mandates.

Residing in Rhinebeck with her family, Lisa provides insights into her personal life while also detailing her professional ethos at Lateral Investment Management. She emphasizes the firm's focus on the U.S. lower middle market, targeting companies with substantial EBITDA and aiming to be the first institutional capital in businesses poised for growth, particularly in technology and business services.

The conversation transitions to Lisa's sales philosophy, where she advocates for building genuine relationships with investors rather than traditional selling tactics. She describes her approach as a meticulous process of understanding an investor's needs and matching them with appropriate investment opportunities, akin to a matchmaking process in private equity.

Lisa's narrative extends to the importance of being organized and prepared, sharing techniques that ensure consistent follow-up and engagement with potential investors. She underscores the significance of personal interaction, preferring direct phone calls over mass emailing for establishing initial contact.

The podcast also touches on Lisa's strategy for navigating the vast landscape of LP (Limited Partners) in the U.S., advocating for a targeted approach that focuses on core LPs actively allocating capital. She shares insights on the nuances of effective fundraising, including the strategic use of personalization in communication to stand out and resonate with potential investors.

Lisa’s narrative concludes with a profound piece of advice for newcomers in the industry: to persevere and maintain a strong resolve despite the challenges inherent in investment sales. Her journey and insights not only shed light on the art and science of fundraising but also serve as an inspiration for sales professionals seeking to excel in the dynamic world of institutional capital raising.