“Ten or 15 years ago, most LPs thought one guy found the deal and they sold it,” said Peter Martenson, a partner at Eaton Partners, a placement agent that works with many first-time funds. “Now it’s a real team effort, even with outside consultants involved as well.”
Eaton Partners’ Martenson said about 20 people on his firm’s team of at least 60 focus on shoring up track record claims by GPs in first-time and other fund by calling CEOs, talking to consultants, and reading press releases and news reports. It’s akin to trying to figure out a Major League baseball player’s batting average almost from scratch.
“Our job is to corroborate that,” Martenson said. “We ask the executives, ‘ You say you did these deals. How can we triangulate that? Is there a CEO of a portfolio company that will say, ‘Yes, you lead that deal?'”
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