Stay resilient and purpose-driven when raising your first fund. Raising a fund is challenging, with a high rejection rate. Jim and Doug emphasize the need for persistence, confidence, and experience from deal-by-deal fundraising. Equally important is a clear “why.” Independent sponsors must convey their mission and unique value to stand out to investors in a crowded market
Due diligence goes both ways. Whether you’re investing or selling, conducting thorough due diligence is essential. Just as PE firms scrutinize potential deals, sellers should research prospective partners. Talking directly with CEOs and founders who’ve worked with these firms offers valuable insights. Jim and Doug recommend asking about the firm’s value-add, leadership stability, specific support examples, and performance in tough times. Aligning expertise and cultural fit builds a strong foundation for a successful, long-term partnership.
Build partnerships on a foundation of communication and a shared vision. Jim and Doug emphasize that aligning on core goals from the start smooths out challenges. Their mutual respect and collaborative approach enable efficient decisions, keeping them in sync. Open, transparent communication has strengthened both their professional partnership and personal bond.
