Mon, Feb 19, 2018
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. Chenavari, a $5.4bn hedge fund, told investors it thinks 'we could experience a similar pattern as the 1987 crash'[more]

    From Businessinsider.com: A $5.4 billion hedge fund told clients markets could tumble just like they did in the 1987 crash. In a February 14 letter to clients, London-based Chenavari Investment Managers warned about current market conditions. From the letter (emphasis added): "Our view is that

  2. Investing - Hedge fund Bridgewater makes $22 billion bet against European firms, Hedge funds Steadfast and Suvretta jump onto CSX in fourth quarter, Tepper's Appaloosa boosts Apple, Facebook as others bolt, Third Point buys Netflix and MGM, dumps Bank of America, Moore Capital bought Wynn Resorts, other casino stocks before Steve Wynn resigned[more]

    Hedge fund Bridgewater makes $22 billion bet against European firms From Reuters/USNews.com: Bridgewater has shown its hand in Europe with a $22 billion bet against some of the continent's biggest companies, filings reviewed by Reuters show, part of a bigger shift by the world's largest

  3. Funds Profiles - Brother-run hedge fund up 46% in 2017 says Kelly formula shows diversification is flawed, How a 6,000% profit on a single trade saved a small hedge fund from disaster[more]

    Brother-run hedge fund up 46% in 2017 says Kelly formula shows diversification is flawed From Valuewalk.com: When Jeremy and Michael Kahan consider the notion of diversification, the wince. With a return of 45.8% to end 2017, their stock-picking fund, North Peak Capital, successfully

  4. Investing - Hedge funds hook shipping stocks grappling for recovery, Small cap hedge funds offer alternative for cannabis investing, Top stock-picking hedge funds love gaming, health care and media shares, Hedge funds Steadfast and Suvretta jump onto CSX in fourth quarter[more]

    Hedge funds hook shipping stocks grappling for recovery From Hellenicshippingnews.com: Shipping stocks may still be in the doldrums in the view of many investors, but hedge funds have bet at least $675 million on signs of renewed buoyancy in the industry. Hedge funds made initial f

  5. Outlook - Eaton Vance: Retail volatility products 'the tip of the iceberg' in market turmoil, Quadratic Capital says markets to remain turbulent for some time[more]

    Eaton Vance: Retail volatility products 'the tip of the iceberg' in market turmoil From CNBC.com: While a lot of attention has been paid to retail volatility products that contributed to the recent sell-off, those securities are "just the tip of the iceberg," Eddie Perkin, chief equity i