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Alternative Market Briefing

Managers in sweet spot are focusing on more aggressive fundraising from institutional investors - Arrow Capital

Wednesday, March 10, 2010

From Kirsten Bischoff, Opalesque New York:

For the past few months as inflows have started to increase, institutional investors evaluating managers for allocations have made it clear that the bar for securing assets has been raised. According to most investor surveys, managers need a minimum track record of five years with strong performance, a history of maintaining liquidity to investors (or a very compelling explanation for any gates raised during the financial crisis), and comfort with a high level of transparency along with the infrastructure to support it.

Although the number of funds has been severely reduced, there remains a group of managers that meet these stringent requirements and that recognize that now is the time to step up efforts to secure these inflows into the industry. For New York-based Arrow Capital Management, an event-driven alternative investment firm launched seven years ago by Alexander von Furstenberg and Mal Serure, this means taking more proactive steps, one of which includes the recent hire of industry marketing veteran, Ivan Wanat.

"Since launching in 2003, allocations have been largely from word of mouth referrals. We have not proactively marketed," senior analyst John DeRaimo says. The hire of Wanat marked the beginning of an asset raising campaign by the team at Arrow Capital, in what the firm views as a move to increase and diversify their investor base.

"We s......................

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