How Fund Managers Think: A Guide for LPs New To Private Equity

Would you keep investing after losing money in multiple deals?

Most people swear off alternatives after a bad experience. But the best LPs know every loss holds lessons—and that diversification, underwriting, and discipline matter more than any single deal.

This week’s episode of The Passive Income Playbook features Sanjay Vora, CEO of Avestor and advisor to 200+ funds, who shares how he went from Intel executive to seasoned LP and fund manager — so you can spot red flags faster, underwrite smarter, and protect your capital.

In this episode:
✅ The biggest mistakes LPs make when trusting sponsors’ glossy pitch decks
✅ Why interest rates and loan terms can quietly destroy cash flow
✅ The difference between stage 1, stage 2, and stage 3 investors (and where you are)
✅ How to run a quick “10-minute review” that screens out 90% of bad deals
✅ Why diversification across sponsors, asset classes, and geographies is non-negotiable

Sanjay also breaks down:
→ How to ask sponsors the hard questions that reveal hidden risks
→ Why “I’ve never lost money” should actually be a red flag
→ How new fund managers should think about compensation and structure

If you want to sharpen your due diligence and build a system for evaluating LP investments, this episode will give you the playbook.

👉 Get 25+ Passive Investment Deals in Your Inbox:
http://growyourcashflow.io/investing-starter-kit-yt

Chapters:
00:00 – Meet Sanjay Vora: From Intel to Fund Manager
03:18 – Why He Left the Stock Market for Alternatives
04:49 – Hard Lessons From 100+ LP Deals
07:24 – The Big Mistake Most New Investors Make
09:32 – Interest Rates, Risk, and Today’s Market Reality
12:15 – From LP to Fund Manager: Managing Other People’s Money
14:54 – How to Spot Red Flags in Underwriting
18:24 – Vetting Fund Managers & Due Diligence Best Practices
25:53 – New vs. Experienced Fund Managers: Who to Trust?
36:50 – Diversification, Risk, and Building a Smarter Portfolio