- Fund1 Frank
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- Too Big To Commit
You’re in the early innings of Fund I. You’ve finally gotten in the room with an institution you deeply admire.
You make your pitch. The vibe is solid. They’re interested.
Then they drop it:
“Our minimum check size is $10M.”
Your internal monologue starts spiraling:
“$10M?! I barely have $10M committed total right now.”
“We could take it, but then they’d own half the fund.”
“Wait… do I beg? Walk away? Cry in the hotel lobby again?”
Welcome to one of the classic dilemmas of early fundraising:
What do you do when an LP is too big for your fund?
Frank Take: Play the Long Game, Not the Loud Game
1. Don’t Fumble the Follow-Up
This is not a dead-end—it’s the start of a relationship. A “no” to Fund I might be a “yes” to Fund II… or a “maybe” to a Fund I exception.
"We’re huge fans of what you’re building. We totally understand the check size constraints, but would love to keep the conversation going. We’re playing the long game here and would be thrilled to find a way to work together—whether that’s in this vehicle or the next.”
A little grace and humility goes a long way here.
2. The Mutual Exception Play
Sometimes it’s worth putting this on the table—delicately:
“I know our fund size is smaller than your typical allocation, but if you’re open to exploring a smaller check, we’d be open to discussing ways to make that work—whether it’s access to co-invest, strategic insights, or customized terms.”
Translation: You bend, I bend. Let’s get creative.
Big LPs make exceptions all the time—but rarely if you don’t ask.
3. Stay in Touch Without Being a Try-Hard
Not every update needs to be a pitch. If the relationship’s warm, keep it warm. Send periodic updates. Invite them to portfolio showcases. Ask for input. Make them feel like an insider—even if they’re not on the cap table yet.
Long game = long wins.
💬 What Other GPs Are Doing
Some emerging managers have had success:
Creating “sidecar” structures for larger LPs who want to dip a toe.
Bringing them in late in the process once the fund is oversubscribed (and you’ve earned leverage).
Setting up quarterly advisory convos with institutions who said no to Fund I—but expressed interest in future funds. Keeps the door open.
🚫 What Not To Do
Don’t ghost them because you feel small. That’s an insecurity trap.
Don’t try to re-engineer your fund size just to accommodate one investor.
Don’t treat every intro like a one-shot sale. You’re not selling knives at a county fair—you’re building multi-decade capital relationships.
Remember, it’s the long game!
Till Next Time,
– Fund1Frank
Running lean, fundraising clean, and making friends I can’t afford (yet).
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