Raising capital in 2025 with James Varela

Fundraising in 2025 isn’t business as usual. James Varela, Partner at Rede Partners and Head of MENA, joins us to break down what it really takes to raise capital from LPs—especially in the Middle East. We talk DPI pressure, LP targeting, co-investments, how to build credibility in emerging markets, and the biggest mistake GPs still make when pitching. Whether you’re struggling or oversubscribed, this one’s for you.

[00:00] Intro to James Varela and focus on capital raising in the Middle East.

[00:30] James’ 15+ years in capital raising across PE, infra, credit, and real estate.

[01:26] Fundraising remains tough—macroeconomics and low DPI are key issues.

[02:21] LPs cautious; focus shifting to GP quality and DPI visibility.

[03:13] GPs turning to NAV lending and creative liquidity tools.

[04:05] 66% of LPs now cite DPI as their top investment metric.

[04:31] Strong fundraises begin 12 months out—prep is everything.

[05:00] Nail your equity story—what sets you apart?

[05:26] Focus on LPs where your strategy fits—don’t spray and pray.

[05:55] Transparency and respect matter more than past returns.

[06:26] GPs often fail to systematize and name their edge.

[07:25] LPs want proof—not theory—of execution and outcomes.

[08:24] Plan 2–3 years out for Middle East fundraising; co-invests are key.

[08:55] Content > presence—show up with something to say.

[09:52] LPs want honest differentiation, not polished fluff.

[10:51] Share what went wrong and what changed—credibility counts.

[11:44] Most firms struggle from poor positioning, not poor product.

[12:14] Systems reduce risk, especially for global firms.

[13:37] Frameworks matter—manage what’s out of your control.

[14:07] Even top performers can fail at storytelling.

[15:02] Reframing the narrative can unlock overlooked value.

[16:26] Fundraising is marketing—Rory Sutherland’s Alchemy cited.

[17:22] Iteration is painful but critical—change takes work.

[18:20] LPs care about the future, not just past returns.

[19:09] Big firms re-entering mid and small-cap to chase alpha.

[19:37] Middle East mistakes: wrong timing, same pitch, poor targeting.

[20:34] Use portfolio milestones as conversation openers.

[21:04] GCC LPs want both long-term trust and large co-invests.

[21:59] Vision and culture alignment matter just as much.

[22:29] Targeting is everything—don’t chase irrelevant LPs.

[22:59] LPs prefer North America, large GPs, proven track records.

[23:57] Specialization and sector depth are rising priorities.

[24:55] AI and tech are hot in the UAE—substance still matters.

[25:54] Growing appetite for GP stakes from Middle East LPs.

[26:21] Europe gaining ground as LPs move down-market.

[27:14] Top reads: Alchemy, Acquired, Diary of a CEO, Tools of Titans, Atomic Habits.

[29:05] Final thoughts: fundraising is either brutal—or it’s fine. Nothing in between.

Connect with James Varela on LinkedIn. Thanks for tuning in.

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Got feedback or questions? Email Alex at [email protected]. Until next time—keep smashing it!

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