What is Investment Mandate?
An investment mandate is the set of parameters within which an LP is authorized to invest — defining allowed asset classes, geographies, check sizes, fund vintages, manager criteria, and return targets. Understanding a target LP's mandate is critical for effective fundraising outreach.
Every institutional LP operates under a formal investment mandate set by their board or investment committee. This defines what they can invest in: private equity, venture, real assets, hedge funds; which geographies; what stage of fund (Fund I, Fund II+); minimum and maximum check sizes; and whether they can invest with emerging managers.
Fund managers who understand a target LP's mandate can tailor their pitch to fit within its constraints — or avoid wasting time on LPs whose mandate clearly excludes their fund.
Also known as: LP mandate, investment policy