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How Important is a Diversified LP Base?

This week at Buyouts we’re writing about placement agents and I’ve begun thinking over the issue of how important it is to get placement agents to diversify LP bases for GPs.

The basic premise is that if your LP base is diversified, then when a certain geographic area gets hot (the way Canada, Australia and Japan have), you’ve already got your foot in the door and can ramp up fundraising. If an area gets cold, obviously you are protected by diversification elsewhere. If there are any GPs out there that care to comment on how important LP diversification is your funds, whether it be geographic or by type of investor (endowment/pension/high net worth), I’d love to hear your thoughts….post a comment or email me at