Document-Rich Data Rooms Are a Powerful Tool For Discovery and Engagement for LPs and GPs
Out of the 1,175 private equity fundraisings on Palico’s marketplace offered by members, slightly more than a quarter have data rooms enriched with documents (including everything from releases on specific acquisitions and fundraising milestones to highly detailed private placement memorandums). On average, data rooms with documents have attracted 7 access requests from accredited investors over the past month versus an average of 2 requests over the same period for data rooms that contain no documents.
|Data Room Documents Lead to Better Discovery and Engagement|
Palico’s data rooms help both LPs and GPs discover new potential partners; data rooms with documents are even more effective. They provide more information to LPs and permit GPs to increase their contacts on Palico with potential investors by a factor of nearly 4. When a private equity manager opens a data room for a classic fundraising or a co-investment, a brief message is broadcast to all accredited investors who have expressed interest in that strategy. The smallest of 14 strategic categories – Esoteric Investments – has a following of 1,025 accredited investors, while the three largest categories – Buyout, Growth and Venture – have followings of between 2,388 and 2,542 accredited investors. When it comes to attracting access requests from investors, the most important information in the broadcast is whether documents can be found alongside the data room’s fundraising description.
|Opening a Data Room, Adding Documents is Free for GPs, so are Visits for LPs|
GPs with a free basic membership to Palico can create fundraising data rooms and add documents to them at no cost. For accredited LPs, visiting a data room is also free, once approved by the GP. Whenever a GP adds a document to a data room an email is sent to all LPs who have been approved for access. This is a follow-on tool that increases connections, visits, conversations and traction around investment opportunities for both LPs and GPs. Another follow-on tool allows premium GP members to use Palico credits to broadcast regular updates to a wider audience of LPs who have expressed interest in the fundraising or co-investment strategy.
|Data Rooms are Secure and Document Download is Controlled|
Palico secure-technology data rooms can only be accessed by LPs successfully vetted by Palico’s compliance staff as meeting accredited investor standards* and only after GP approval of the access request. All documents downloaded by data room visitors are watermarked with the accredited investor’s name.
|Palico is for the Entire Global PE Community – LPs, GPs and Service Providers|
Whether it’s via desktop, smartphone or tablet, Palico’s marketplace helps Limited Partners, General Partners and Service Providers find each other in the complex world of private equity.
*As outlined by the U.S. Securities and Exchange Commission.