What If No One Comes to My AGM?

I recently met with the founder of a large private markets firm who had some doubts about his team’s recommendation to hold their first AGM.

Over the course of an hour-long meeting, I was grilled about trends in convening. Among his concerns were:

• Program: What do LPs really want to hear/see? How do we keep people engaged?
• Audience: What is the right size and how can you guarantee that the investors you want will actually show up? How small is too small?
• Location: How important is the venue? Are we better off hosting this at a top-tier “destination” to entice investors into attending or will we get more participation if we choose convenience and accessibility?
• Budget: How much can you expect to spend to host a truly successful AGM?

All of his questions really boiled down to the one that is on every founder’s mind when they are planning an event, but don’t want to ask explicitly: What if no one comes to my party?

From the Mouths of LPs

Given how often I am asked this question (albeit conveyed in a less insecure sounding way), I thought it would be useful to share some of the trends we are seeing at the most successful AGMs.

The best AGMs make LPs feel like they are part of the firm’s story. What does this mean in practice? Every element of the event should be designed with your investors in mind. If you have engaged LPs who will be candid with you, survey them first about what is going to be most valuable to THEM.

We speak to LPs regularly about the best AGMs they attend. Some of the most notable and consistent feedback includes:

• Show your team in action, not just on slides: LPs often attend AGMs because they are an efficient way to spend time with the firm’s broader team (not just the founder and/or lead PM) and see how they operate. A couple of days really getting to know the leadership helps them to validate talent, get to know your culture and reaffirm why your firm was chosen for an allocation in the first place. Time with your investment team helps them to more deeply understand their judgment and decision-making. Time together in person helps LPs build trust across the firm to inform their future commitment decisions.
• Design networking as part of the program: This is a lot easier said than done, and no, a cocktail hour at the beginning of the event doesn’t count. Quality networking begins with curating your invite list. Be intentional about who you invite, paying special attention to the seniority and the role of the attendee. When you review the list holistically, does it make sense to you? Every potential invite should be considered in the context of, “does this person ADD to the quality of our attendee base? Will my LPs get anything from a conversation with this person?” Ask your team to explain WHY they are inviting each person. Networking should be built into the program, with many moments/sessions throughout the event where guests are encouraged to interact. Very few people have the patience to sit through presentation after presentation without opportunities to engage.
• Go beyond the numbers: It is critically important to LPs to be able to evaluate other parts of your firm that are not captured in quarterly reports. They want to know their GPs get the first call on interesting opportunities and have a strong pipeline for sourcing deals and top talent. Your AGM is your firm’s opportunity to demonstrate the assets you have that don’t easily lend themselves to quarterly reporting. Show case studies of how certain deals came about and what decisions had to be made in order to get full buy-in on an investment OR conversely why a deal that looked great at face value was ultimately turned down.

Take a Cue on Content from the Experts

Many of the world’s most innovative conferences are shaking up their content in an effort to engage the most distracted and discerning attendees (see “What the Best Events Got Right This Spring”). Yes, investors want to dig into your portfolio and performance, but they are only human and also want to be engaged. After attending and programming countless AGMs, here’s our take on programming:

• Condense required performance updates into a half day: Take this option or you can weave the obligatory content into the whole agenda, but leave plenty of room for lighter, more human content to create energy and belonging.
• Tie activations to portfolio companies, real assets or local experiences: You can tell the story of your firm and your stellar investment prowess by bringing these investment decisions to life. Use site visits, hard-hat tours, tastings and product demos to engage LPs in your investments.
• Bring in compelling outside speakers or sports and entertainment talent (within reason): Everyone likes to be entertained, so if you have the time and the budget, dedicate some portion of the program to this. Don’t go overboard though – excessive spending on these elements can signal a lack of focus or seriousness about your core business.
• Use interactive formats, such as PM pitch battles & audience voting: An LP once told me about an AGM she attended where the founder subjected his PMs to “pitch battles” – each PM had a few minutes to describe an investment they had considered making and then the LPs had to guess if they ultimately made the investment and why (or why not). It was a fun way to get people thinking and get to see the PMs in a more spontaneous and light-hearted setting.

Your AGM is an Extension of Your Brand

A successful AGM is another important credential in your firm’s overall brand and reputation strategy. And while the finance industry took a while to come around to the idea of brand value, it’s been clear for some time that LPs care about a GP’s reputation. For years, many founders insisted that performance should speak for itself. And of course, performance is paramount. But these days, building trust and raising capital requires creative ways to demonstrate your strategy and returns. The world of GPs is crowded and noisy, and exceptional convening is one way to stand out in the crowd.  If you’re considering hosting a party, make sure it’s one that no one wants to miss.