Track record
The documented results of a manager's past investments.
It covers returns, realisations, loss ratios and the individual's role in each deal. For emerging managers the record often comes from earlier firms, which raises questions about attribution, meaning what the person actually did versus what the team did.
A credible track record lists every relevant investment, not just the winners, with dates, amounts, realised and unrealised values, and the person's role. LPs check it against references, prior firm documents and sometimes portfolio founders.
For a spin-out team, attribution is the hard part. A letter from the former firm confirming the individual's role, or deal documents showing who led the investment, makes the record far more believable. In the US, presenting a predecessor firm's performance in marketing also has to meet the SEC Marketing Rule's conditions.
Worked example
A GP who was at a larger firm for eight years lists 14 deals she worked on and marks the six she led and sat on the board of. The six led deals show $42M invested and $118M of value, a 2.8x gross multiple, with two full exits. She attaches a letter from her former firm confirming her role and offers references from four founders.
Common questions about track record
How can a first-time fund manager show a track record?
By documenting deals led or sourced at previous firms, angel investments, operating results or a pre-fund portfolio of personal investments. LPs want attribution evidence, references and complete data, not only the best outcomes.
Can I use my previous firm's returns in my pitch?
Only with care. You must show your own role accurately, and in the US, registered advisers using predecessor performance must meet specific conditions under the SEC Marketing Rule, including having the records to support it.