Seven Rules for Growing Assets for Alternative Investment Managers

Seven Rules for Growing Assets

Actionable strategies for: Hedge Funds

Private Equity

Real Estate

Will big always get bigger?

…the 500 largest hedge fund managers control 90 per cent of industry assets, with the 505 hedge fund managers that run at least $1bn responsible for $2.39tn of the industry’s $2.66tn total assets.Hedgeweek – January 20th, 2015

…the private equity fundraising market is still in a state of bifurcation. The largest, brand-name managers are receiving the majority of investor commitments, with smaller managers – particularly first-time funds – finding it difficult to raise capital. 

Preqin - July 13th, 2014

#1. Listen to the Investor• What are their risk/return objectives?

• What has piqued their interest in your fund? Where does it fit in their portfolio?

• Provide a solution – not a product• Don’t jam....if it’s not a fit, move on. It might be down the road.

#2. Educate, Educate, Educate

• Investors are looking to you for insight – markets, economics, risks, opportunities

• Strengthens the relationship

• Makes them better at what they do

• Knowledge transfer will always be appreciated and potentially rewarded

• One of the ways to do this on a broad scale is…

#3. Utilize Thought Leadership Opportunities

ArticlesInterviews

ConferencesVideo

Social Media

• Create an intellectual attachment with a broad audience

• Opportunity to rise above the noise

• You’re smart...its ok to show the world

#4. Transparency is here – embrace it• Expect it to be a selection factor

• Use it to create competitive advantages

• Utilize technology to protect intellectual property and keep track of interested parties ie: investor portals

#5. Consider the Retail Market• Institutional allocations are slowing• Liquid alternative assets are growing 40%+ per annum• Will require a vastly different marketing approach• Branding will be critical

Branding is the What and the Who What do you stand for? Your values and beliefs?

Social Media is the HowNew distribution channels to reach more investors for them to learn and understand your brand

#6. Embrace the New World Order of Digital Communication

#7. Run all External Communications by Compliance/Legal• The SEC and other regulators are watching and listening like never before

• This should not be a deterrent to embracing a higher profile in the investor community – but the aforementioned new commandments of asset raising require new processes for compliance

ANDRE BOREASCEOQUADSIGHT PARTNERS LLC

[email protected]