New Managers February 2012

Q&A
On the proper procedures of marketing and asset raising

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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.

Bryan Johnson

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 activities.

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.