If you want to do well, develop your marketing strategy 4 to 6 months before starting active fundraising
According to a recent white paper titled "Marketing and Fundraising
For Small Hedge Funds", it is getting harder, more expensive and
more complex for small and new hedge funds to grow assets under
management (AUM). No surprise there.
"Without intelligent, comprehensive planning and preparation, a fund's
attempt to grow AUM can be over before it begins," the paper says.
"Successful marketing and fundraising requires numerous discussions
and planning sessions well in advance (optimally 4-6 months) of formally
engaging investors, intermediaries and market participants." The paper
then explains the steps to take.
The white paper was authored by Bryan K.
Johnson, managing partner of a marketing
consultancy shop based in Austin, Texas,
called Johnson & Company . The firm
specialises in start-up and smaller hedge
funds. Johnson has more than 20 years of
experience in sales and marketing within
alternative investments and was lastly
Global Head of Business Development,
Alternative Investments at Moody's
Investors Service (NYC).
Opalesque put him to the test in a Q&A.
Question: Why and how should fund managers make the distinction
between marketing and asset raising?
Answer: Marketing and fundraising are distinct but complementary
Marketing is communication and should be a consistent and continual
activity, while fundraising is active solici......................
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This article was published in Opalesque's New Managers
a top-down monthly analysis, news and research publication on the global emerging manager space.