Thinking about launching a hedge fund or looking to grow your fund's assets faster? Find out why some funds raise capital faster than others.
Note: Content is targeted to hedge funds, but the information is applicable to other types of asset managers.
PrecisionLender Webinar - 7 Habits of High-Performing Relationship ManagersPrecisionLender
About this Webinar In this fast-paced presentation you’ll gain insights into what differentiates the best Relationship Managers from the rest of the pack. Data has shown that in most banks the top RMs generate the majority of loans and deposits, and at significantly better returns than their peers. Join us for this webinar, where Ned Miller from MZ Bierly Consulting and Kevin McNamara from PrecisionLender, will examine the specific tactics that these high-performing RMs employ to solidify relationships with customers and win new business from prospects.
Managing an asset management business is unique. Not only is it a professional service business but extraordinary portfolio management and sales talent is critical to the business. Balancing the business and the profession is essential.
CreativeCap Advisors is a marketing and investor relations consultancy with extensive knowledge and expertise on the investment management industry. The firm works extensively with newly launched funds to more established managers in helping to solidify their market position and attract new capital. The breadth of service offerings is a testament to the firm’s 360° approach to marketing and investor relations. It is complimented by a dedicated team who are focused on bringing their clients’ business to the next level. The firm takes a holistic approach to reviewing each business and generates a cohesive strategy tailored to each specific client. Through our affiliate networks around the world, the firm excels at elevating and positioning each fund in becoming the most attractive to varying types of capital. CreativeCap Advisors at the core is a business designed to assist and integrate with investment management firms by working alongside C-level executives who are seeking to further expand their business.
Contact For More Information: Tyra Jeffries, Founder + CEO | tyra.jeffries@creativecapadvisors.com
Tax reform actually changes everything. We've never had a moment in which so much cash will be sitting on corporate balance sheets. The most strategic-minded executives will see this opportunity as a watershed moment to reevaluate how they allocate cash.
PrecisionLender Webinar - 7 Habits of High-Performing Relationship ManagersPrecisionLender
About this Webinar In this fast-paced presentation you’ll gain insights into what differentiates the best Relationship Managers from the rest of the pack. Data has shown that in most banks the top RMs generate the majority of loans and deposits, and at significantly better returns than their peers. Join us for this webinar, where Ned Miller from MZ Bierly Consulting and Kevin McNamara from PrecisionLender, will examine the specific tactics that these high-performing RMs employ to solidify relationships with customers and win new business from prospects.
Managing an asset management business is unique. Not only is it a professional service business but extraordinary portfolio management and sales talent is critical to the business. Balancing the business and the profession is essential.
CreativeCap Advisors is a marketing and investor relations consultancy with extensive knowledge and expertise on the investment management industry. The firm works extensively with newly launched funds to more established managers in helping to solidify their market position and attract new capital. The breadth of service offerings is a testament to the firm’s 360° approach to marketing and investor relations. It is complimented by a dedicated team who are focused on bringing their clients’ business to the next level. The firm takes a holistic approach to reviewing each business and generates a cohesive strategy tailored to each specific client. Through our affiliate networks around the world, the firm excels at elevating and positioning each fund in becoming the most attractive to varying types of capital. CreativeCap Advisors at the core is a business designed to assist and integrate with investment management firms by working alongside C-level executives who are seeking to further expand their business.
Contact For More Information: Tyra Jeffries, Founder + CEO | tyra.jeffries@creativecapadvisors.com
Tax reform actually changes everything. We've never had a moment in which so much cash will be sitting on corporate balance sheets. The most strategic-minded executives will see this opportunity as a watershed moment to reevaluate how they allocate cash.
Many small business owners dream of growing their business to satisfy the needs of their customers. However, a business with a steady inflow of new customers must consider its capacity and capability to deliver to these customers. Scaling a business means setting in place the processes and systems needed to support seamless growth.
Building a Successful Business - Key Demand Drivers, Trends and Best Practice...SSCG Consulting
It's a good time to be involved in the start-up scene. More funding available than ever before, capacity building support and content on how to start your own business are easily accessible, and community-driven coworking and innovation hubs are popping up everywhere.
Despite the rising popularity of entrepreneurship, starting up a venture and culture brings its own unique set of challenges and problems in a rapidly changing and complex global landscape that its leaders must overcome.
How to engage with customers in B2B marketsprofpalekar
For B2B businesses there only a few customers and the order size potential of each is high - therefore the way in which B2B companies engage with the customers is very different from what happens in B2C businesses. In B2B businesses it is possible to have both in-depth and frequent interaction with the customers but in B2C business it is just not possible to even see the customers through the multiple layers of distribution let alone interact with them! ,
This course is geared to participants who may be interested in starting a new venture, playing a managerial or supporting role in a startup or a corporate venture, investing in new ventures, mentoring new ventures, or leading new business development in large companies.
Many small business owners dream of growing their business to satisfy the needs of their customers. However, a business with a steady inflow of new customers must consider its capacity and capability to deliver to these customers. Scaling a business means setting in place the processes and systems needed to support seamless growth.
Building a Successful Business - Key Demand Drivers, Trends and Best Practice...SSCG Consulting
It's a good time to be involved in the start-up scene. More funding available than ever before, capacity building support and content on how to start your own business are easily accessible, and community-driven coworking and innovation hubs are popping up everywhere.
Despite the rising popularity of entrepreneurship, starting up a venture and culture brings its own unique set of challenges and problems in a rapidly changing and complex global landscape that its leaders must overcome.
How to engage with customers in B2B marketsprofpalekar
For B2B businesses there only a few customers and the order size potential of each is high - therefore the way in which B2B companies engage with the customers is very different from what happens in B2C businesses. In B2B businesses it is possible to have both in-depth and frequent interaction with the customers but in B2C business it is just not possible to even see the customers through the multiple layers of distribution let alone interact with them! ,
This course is geared to participants who may be interested in starting a new venture, playing a managerial or supporting role in a startup or a corporate venture, investing in new ventures, mentoring new ventures, or leading new business development in large companies.
Seven Steps for Revitalizing Your BrandR. Jay Olson
If the time has come to re-energize your brand, follow this proven framework to get your CEO and executive team behind you to mobiliize your initiative, and ensure your company's investment drives profitable long-term growth and asset valuation.
Social business or social enterprise needs careful planning. This slide series was developed and presented for the Social Business Launch Pad seminars by William P. Kittredge, PhD. The Social Business Launch Pad is a joint education seminar series co-sponsored by the Yunus Center at AIT and the Thai Social Enterprise Office http://www.tseo.or.th/
In this paper author Nicholas Assef covers the benefits of private companies adopting a private equity mindset to consider strategies that should be adopted and actions that should be taken in planning to sell their company.
In particular this encourages the Private Company directors & shareholders to step outside of their day to day operations and reflect on the way the Company will be seen by external parties. Once this assessment has been made then adjustments can be made with plenty of time in order to optimise the business case.
Driving a business to a successful exit is a matter of science and not good fortune.
1. According to a survey performed by Advent, 67% of investors make the
decision on whether or not to allocate in less than 30 minutes in meeting
with managers — 18% of the surveyed investors said that they make a
decision in less than 10 minutes.
NOT RAISING CAPITAL
FAST ENOUGH?
Studies show that it could be your product,
your pitch or both
2. As you set up your flagship fund or plan to launch a second or third one, a track record is paramount
to validating key areas such as, but not limited to: your approach, your thesis, your value and your risk
management capabilities. While having a track record is important to capturing investors’ attention, if the
product - both portfolio management and operational infrastructure - in the early trading years shows
promise you will notice a strong uptick in investor interest. The ability
to institutionalize your fund and showcase the strength of your product
through its unique value and strong risk management framework are
necessary steps.
However, between now and then what can you do to get more meetings
and close more deals? Take a look at your overall business infrastructure
not just your portfolio management. What are you doing to enhance
your market position aside from targeting stellar returns? A hedge fund is
not just about portfolio management it is above all a business. You
need to spend a considerable amount of time not only building
your operational infrastructure, but simultaneously developing
your story and properly positioning yourself before aggressively
hitting the LP marketplace. Otherwise, it will be a very long capital
raising process.You need to ensure that your product is compelling
and unique enough to attract the attention of investors seeking
out your specific type of strategy.
Getting the attention of a seed or anchor investor is vital to
opening doors up for your fund. However, if you have not taken the time to properly assess your fund’s
marketing edge you will be rapidly burning through your working capital. You should take the time to locate
someone objective to critically assess your fund who is familiar with the landscape and can honestly tell
you the areas where you are lacking. Could it be your product, returns, operational infrastructure, positioning,
investor communication and corresponding level of transparency or something else? Like any business, if you
have a weak product you will not attract investors. The fund’s story and thesis are top reasons why funds
Figure #4: IR Professional Compensation Data
Source: Hendricks & Struggles
“75% of investors say
they all too often see
presentations by managers
who are unable to
clearly differentiate their
strategy.”
Source: Advent’s Hedge Fund Investor Survey
Many managers - especially emerging managers - have difficulty raising capital particularly at the beginning
stages of their businesses. The reasons tend to vary, but one of the most commonly noted responses by
managers is surprisingly not working on achieving attractive performance, but rather that their track record
has not reached the three-year mark. However according to AIMA’s and GPP’s recent Emerging Manager
Survey, a staggering 96% of investors surveyed said they would consider allocating to a fund prior to
having a full three years of track record. So why the disconnect? Let’s explore further.
Source: AIMA/GPP Emerging Manager Survey 2017
Prior to allocating to an emerging manager, do you require them
to have in-house personnel for the marketing,
business development and investor relations function?
Before allocating to an emerging manager
- how long of a track record do you need to
evaluate a fund for investment?
Do you [managers] have dedicated in-house
personnel or do you outsource the marketing, IR
and business development function?
79%
10%
11%
Figure #1
90%
10%
Figure #2 Figure #3
44%
20%
32%
4%
2
Dedicated In-House Personnel
Outsourced
Not Applicable Less Than 1 Year
1 Year
Between 1-3 Years
Greater Than 3 Years
Yes No
3. lose out on meetings with investors. This could also be a reason why you aren’t raising capital fast enough.
Before you decide to solicit to any potential investors, consider strengthening your efforts by formulating
your marketing and investor relations strategy as this is one of the most underutilized action items by
managers. Your marketing is what will sell and package your product as being unique in its added value
and your investor relations strategy is what will keep clients wanting to buy. You cannot have one without
the other. This is why building a strong Marketing and Investor Relations program - even if your assets are
small - is one of the most crucial elements to your success. If you are just a one-man shop get training or
leverage experts to help you improve your strategy.
INVEST FROM THE BEGINNING. This cannot be stressed enough because your partners and relationships
matter in this business. The typical types of partners a fund engages at launch are: fund administrator,
prime broker, auditor, legal counsel and IT specialist. While these are the industry standard partners that
a fund will have, the question remains who is helping you to develop and strengthen your product or in this
case your fund? The single greatest complaint from investors
aside from performance is how managers communicate with
them and the intriguing nature of a manager’s story. Many
areas that managers believe are compelling and unique in fact
is categorized as one of two things: a) commonplace or b)
expressed in a way that appears commonplace.
The reason why you may not be raising capital fast enough is
because the product you are offering isn’t compelling enough
to elicit active and fruitful conversations with investors. The
types of conversations that conclude with an allocation. Investors spend a considerable amount of time
speaking with mangers they have the intent of investing with otherwise it would be a waste time. How much
investor attention have you been getting? Have those progressed into second and third in-person meetings? The
value of having someone objectively review your fund strategy is the difference between spending years
stagnant at a low AUM and surpassing $500 Million in assets. How far do you want to take your business?
Figure #5: What Are The Top Three Mistakes That Funds
Make When Pitching To Prospective Investors?
Source: Advent
HOW DO YOU STACK UP AGAINST YOUR COMPETITORS? REQUEST YOUR SCORECARD.
One of the ways that we help managers is by developing for them a Scorecard. This is a proprietary marketing due
diligence tool that we have developed that allows you and our team to see where you stand against your competitors.
Your Scorecard is the evaluation of your brand after we’ve executed our rigorous research. This tool allows us to
develop strategies and messaging techniques that better follow your brand story. Our research-driven approach has
been created in order to understand the economic value our services can and will bring to our clients. We assess both
your brand and investment profile. We create a brand score that coincides with your current position and focus on
ways to build your firm’s brand equity, a crucial component for business success.
Brand equity is an asset offering commercial value to a company and is derived by the perception the public and all
stakeholders have of its particular products and/or services. It is one of the most critical components of a business
because it is a key driver in LP acquisition, LP retention, recruitment, business development and revenue generation.
Additionally, it has a material effect on your bottom line. For fund managers, it is the difference between being able
to charge higher fees or having to negotiate them down.
3
4. AUTHOR
Tyra S. Jeffries
Founder & CEO
CreativeCap Advisors
tyra.jeffries@creativecapadvisors.com
www.creativecapadvisors.com (undergoing re-launch)
CreativeCap Advisors is a global business advisory firm with a keen focus on marketing and investor
relations. One of the firm’s flagship offering is outsourced investor relations and marketing solutions. The
firm was founded only in 2015 and has since rapidly expanded and grown to become staples within our
clients’ companies. Our data-driven and high-impact approach to advisory makes us a high value advisor to
each one of our clients, Our team takes a 360° approach to analyzing, creating and developing programs
for our clients. The approach begins by leveraging data intelligence to create the most effective programs,
which has continued to translate into success for every one of our clients. We act as your advisors to help
you build a firm that will continue to make you a compelling investment target to outside investment. Our
varied expertise, breadth of knowledge and exclusive focus on the asset management industry solidifies
our immediate value-add. Our firm has three key divisions - Communications, Investment Advisory &
Research (incl. ODD preparation), Strategic Planning & Business Advisory.
Our team is comprised of 11 professionals - and growing - strategically placed around the world’s key
financial capitals - Chicago, New York City, London and Hong Kong. Our dedicated team is focused on
bringing our clients’ business to the next level. Our firm at the core is a business designed to assist and
integrate with asset management firms by working alongside senior-level executives who are seeking to
further grow and expand their business.
ABOUT THE FIRM
4
Interested in a 15-minute free consultation and business review?
Contact our Founding Principal directly at tyra.jeffries@creativecapadvisors.com.
If you’d like to subscribe please let us know directly what you are interested in and we will
send you targeted complimentary content specific to your goals and interests. If you would
like more information about our firm and services you may contact our Founding Principal
at the e-mail listed above.
Interested in more insights?