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The Follow-Up Math When Raising From Endowments
Adapted for fund managers pitching endowments from Chapter 5 of Capital Raising by Richard C. Wilson.
One sales study I often quote found that most salespeople give up after one, two or three attempts. Yet most sales happen after the fourth contact. Very few people ever reach the fifth.
Endowment allocators make that gap even wider.
What a large raiser told us
At our capital raising summit, one firm that had raised billions for its fund clients said it tracked every touch. Their number: 18 or more touches to convert a prospect to invest. This was a polished team with strong funds and a good CRM, raising well over $200 million a year.
If they need 18 touches, a new manager may need 25 or 30.
Why endowments take longer
- Committees meet a few times a year. One missed meeting adds three months.
- Staff often watch a manager for a while before starting diligence.
- New manager slots may be limited each year.
- An OCIO or consultant may have to approve first.
None of that is a no. It is a slow yes, or a not yet.
What counts as a useful touch
- A short research note on the asset class
- A quarterly letter
- An invitation to a small roundtable
- A relevant introduction
- A brief update when something material changes at your firm
Avoid "just checking in." Every touch should give the allocator something.
Track it
Use a CRM. Record each meeting, what you learned, materials sent and what they said they'd need. Sort prospects into A, B and C. It keeps you from repeating yourself or forgetting what a CIO told you six months ago. Keep the system simple enough that you actually update it.
Frequently asked questions
How often should I follow up with endowment staff?
Many managers aim for something useful every one to three months, more around committee dates.
When do I stop?
When they say clearly that you are not a fit. Even then, stay in touch lightly.
Does a consultant change the math?
It can shorten it once the consultant approves you. Getting that approval takes its own touches.
Sources
- Capital Raising, Chapter 5, Richard C. Wilson .
