Tue, Apr 28, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Online marketing platform revolutionises alternatives fundraising

Monday, March 10, 2014
Opalesque Industry Update - Latest figures from Preqin Investor Network reveal the extent to which the dynamics of fundraising have evolved in the current marketplace. Preqin’s latest industry analysis reveals 51% of institutional investors are now actively seeking out investments through proactively contacting fund managers, with 5,600 investment professionals using Preqin’s platform to source potential investments.

Since the launch of Preqin’s fund marketing platform in November 2013, which provides overview information on all 2,100 funds in market, 200 funds, targeting a total of $50bn, have signed up to directly engage approaches from accredited investors on the Investor Network, accounting for almost 10% of funds being raised. More funds are using the platform to help with fundraising with each passing week.

Traditional methods of fundraising are becoming increasingly inefficient in a market where over 2,100 funds are competing for commitments. On average investors receive 35 unsolicited PPMs a quarter, some more than 100 (Best Communication Practices for Fund Marketers report). Ninety-one percent of investors stated the main reason an unsolicited fund proposal is rejected is because it does not align with their investment criteria. Some investors even refuse to respond to unsolicited approaches altogether (Best Communication Practices for Fund Marketers report). Fundraising across the market is taking longer on average than a few years ago; 18 months until final close in 2013 compared to 12 months in 2007. Preqin Investor Network is improving the efficiency of the fundraising market because GPs are directly approached by LPs specifically interested in receiving information on their offering, and therefore only spend time dealing with qualified leads.

Leading fund managers such as buyout giant Doughty Hanson have already connected with potential investors over the platform, capitalizing on LP desire to actively seek out funds that align with their investment strategy. “Limited partner investors are more analytical than ever before,” stated Stephen Marquardt, CEO and Head of Investor Relations at Doughty Hanson & Co. to Preqin, “They actively search for fund investment opportunities globally and demand much more information early on in the due diligence process.”

“Preqin Investor Network is helping to improve the efficiency of the fundraising process for both investors and fund managers by allowing LPs to spend more time proactively reviewing funds that could be a good fit, while allowing GPs to spend more time interacting with the most likely future investors. Fund managers engaging with the Network are spending more time having valuable interactions and less time chasing institutions to discover if there is even a potential interest.” Stuart Taylor, Head of Investor Products at Preqin.

“Preqin’s Investor Network is helping us to bridge the communication gap between investors and managers in today’s complex fundraising market,” Stephen Marquardt commented. “It has opened the door [for Doughty Hanson] to new investors keen to discover details, led to more incoming investor enquiries and provided an efficient and effective way of communicating fund information.”

Press release

www.preqin.com

Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. U.S. does not want hedge funds to invest in offshore re-insurers for tax purposes[more]

    Komfie Manalo, Opalesque Asia: The U.S. Treasury Department on Thursday introduced a new rule aimed at limiting hedge funds’ ability to reduce their tax bills by investing in insurance companies in offshore tax havens. As a general rule, the U.S. tax laws does not allow hedge funds to use off

  2. Ruling: Hedge funds suing Argentina can have access to bond offering details[more]

    Komfie Manalo, Opalesque Asia: U.S. District Judge Thomas Griesa in Manhattan ruled yesterday that hedge funds are entitled to details of a recent bond offering by Buenos Aires, reports

  3. Fund managers express concern of overvaluation in both equity and bond markets[more]

    Komfie Manalo, Opalesque Asia: According to the BofA Merrill Lynch Fund Manager Survey, investors see growing overvaluations in both

  4. Update: Wall Street has strong feelings about Jon Corzine trying to make a comeback[more]

    From Businessinsider.com.au: Former New Jersey Governor Jon Corzine is thinking about starting his own hedge fund, according to the Wall Street Journal, and because of the way his last firm imploded, Wall Street has strong feelings about that. “Truth is the larger seeders would never give him money

  5. Opalesque Exclusive: Cybersecurity and hedge funds - A manager’s experience, Part Four[more]

    Benedicte Gravrand, Opalesque Geneva: Ruane, Cunniff and Goldfarb, Inc. used to have their own IT infrastructure. Todd Ruoff, Executive Vice President in charge of trading, operations and technology, was responsible for its maintenance. Then he started looking at outsourced providers a couple of

 

banner