Building Investor-First Models, What Resonates with LPs in 2025?

Question

I’ve been thinking a lot about how we position opportunities for investors. In today’s environment, I’m seeing LPs care less about glossy returns on paper and more about alignment, transparency, and downside protection.

Some models that seem to resonate:

• 1.Tiered preferred returns (higher commitments = better splits)
• 2.Clear refinance milestones (not just ‘someday down the line’)
• 3.Communication cadence - monthly vs. quarterly updates

1.Tiered preferred returns (higher commitments = better splits)

2.Clear refinance milestones (not just ‘someday down the line’)

3.Communication cadence - monthly vs. quarterly updates

For those of you raising capital or investing passively:1.What do you find most compelling in a structure?2.Where do you see groups miss the mark?

Would love to hear real-world feedback, I’m always looking to sharpen how we build trust and alignment with investors.

Benjamin Louie · Answer

@Daniel Sehy

Daniel, I totally agree that LPs today care more about trust, alignment, and transparency than just flashy returns.

From my experience, what resonates most is:

• Tiered preferred returns that reward higher commitments.
• Clear milestones for refinancing or exits rather than vague promises.
• Regular communication, ideally monthly, to keep investors confident.

Tiered preferred returns that reward higher commitments.

Clear milestones for refinancing or exits rather than vague promises.

Regular communication, ideally monthly, to keep investors confident.

Where groups often miss the mark is over-promising returns or only providing quarterly updates. Honest, proactive communication builds trust and keeps investors engaged.

Building Investor-First Models, What Resonates with LPs in 2025?

1 Reply