I am approached by probably 4 first-time fund managers a quarter seeking help attracting limited partners, often wealthy individuals or family offices. They are characterised by a hard-wired belief that their past success and distinct investment thesis will generate superior returns and impact for their investors. Yet in 95% of occasions, they don’t act like a success when asking for help. “I’ll pay you when I have the capital or we are a larger fund”.

What they really mean is they want you to bankroll their fund with your time, money and energy. Yet they’d not invest in a business or investment where the sponsors didn’t commit a substantial share of their wealth upfront. Run!