EP268: Inside LP Psychology: How Great GPs Raise Capital in 2025

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Dec 23, 2025

In this engaging discussion, Alexander Russ, Senior Managing Director at Evercore, delves into the intricacies of fundraising in private markets. He highlights why a strong first close can set the tone for success and shares the three essential rules: preparation, control, and narrative. Alexander explains how LPs are motivated by excitement rather than discounts and emphasizes the importance of relevance and tailored outreach. He cautions against weak first closes, suggesting that a well-engineered momentum strategy can make or break fundraising efforts.

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ANECDOTE

Recent Rapid, Oversubscribed Raises

Russ cites recent GP raises that reached hard caps and even doubled their targets as patterns to emulate.
Those raises shared nailed narratives, differentiation, and strong early support from existing investors.

ADVICE

Anchor First Close With Existings Then Signal Scarcity

Use existing LPs as the bedrock of your first close and explicitly ask for commitments rather than assuming support.
Supplement with targeted new LP outreach that credibly communicates impending scarcity to protect allocations.

ADVICE

Hook In Five Minutes, Then Show Depth

Hook LPs in the first five minutes by clearly defining what a typical fund deal looks like and why you're repeatable.
Start simple to get attention, then show case studies and operational detail after you secure interest.

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Why do so many strong GPs struggle to raise capital today and what actually separates fast, oversubscribed fundraises from stalled ones? In this episode, I talk with Alexander Russ, Senior Managing Director at Evercore and Head of North America for the firm’s Private Funds Group, about what really drives fundraising success in today’s crowded private markets. Alex breaks down the psychology of LP decision-making, why momentum in the first close matters more than almost anything else, and how the best GPs differentiate themselves through narrative, preparation, and credibility rather than fee discounts. We dive into why fundraising is ultimately a momentum machine, how to engineer demand early, and why trust—built over years—can be lost in a single raise.

Highlights:

Why the first close determines the outcome of an entire fundraise
The three golden rules of fundraising: preparation, control, and narrative
Why LPs invest based on excitement, not fear or fee discounts
How oversupply of GPs has changed LP behavior
The real meaning of “nailing the narrative” in the first 5 minutes
Why momentum beats aspiration when setting fund size targets
How credibility compounds or collapses across fundraising cycles
The danger of weak first closes and getting stuck “in the doldrums”
Why LP relevance matters more than broad outreach
How placement agents actually add value by filtering, not flooding

Guest Bio:

Alexander Russ is a Senior Managing Director at Evercore and Head of North America for the firm’s Private Funds Group, which he helped found in 2010. He advises general partners on competitive positioning, fundraising strategy, and execution across private equity, credit, infrastructure, and alternative strategies. Prior to Evercore, Alex worked at Neuberger Berman and Lehman Brothers, where he focused on alternatives advisory, capital raising, and distribution of hedge fund and liquid alternative products across the U.S. and Europe. He began his career in investment banking at Lehman Brothers and graduated with honors from Amherst College.

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Disclaimer:

This podcast is for informational purposes only and does not constitute investment, financial, legal, or tax advice. Nothing in this episode should be interpreted as an offer to buy or sell any securities or to participate in any investment strategy. All opinions expressed by the host and guests are their own and do not represent the views of Weisburd Capital. Participants may hold positions or have financial interests in the companies, funds, or investments discussed. Any references to specific investments are for illustrative purposes only. Investing involves risk, including the potential loss of capital. Past performance is not indicative of future results, and any forward-looking statements are subject to risks and uncertainties. Any third-party data or opinions have not been independently verified. Listeners should conduct their own research and consult their own advisors before making any investment decisions.

(0:00) Introduction (1:49) Key factors for a successful first close and strategies without fee concessions (6:07) The role of excitement and fear in LP investment decisions (9:30) Importance of credibility, long-term relationships, and a compelling narrative (18:25) Evolving fundraising strategies in a competitive market (24:53) Building credibility and effective communication with LPs (31:49) Best practices for the first meeting with an LP and setting fund targets (37:47) Improving the efficiency of the fundraising process and consequences of missing targets (40:09) Raising a smaller fund versus a bigger target and expedited processes (42:10) Golden ratio in LP cutbacks and securing allocations impact (44:47) Balancing LP relationships and demand with ideal outcomes (46:05) Importance of storytelling and relationships in fundraising (46:34) Value of placement agents for GPs (47:30) Closing remarks