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Sara Malak Bailey McCann, Opalesque New York:
Emerging managers face a number of hurdles when trying to thrive in todays market. Fund start-up costs have grown exponentially as regulators and investors demand more transparency, infrastructure, and more active risk management. The capital raising environment is also especially difficult for smaller funds as institutional investors make up more of the investor pool and favor larger funds that can handle large allocations. Despite that, some seeders are looking at ways to support smaller funds with an incubation approach that provides both infrastructure and investor relations.
The Alpha Cooperative is one such firm. The New York-based operational incubator for hedge funds, provides a two track approach for emerging managers that allows them to choose the kind of support they need.
"We have created a shared platform where managers can get everything that they want in one place, but the cost is variable because the platform is shared between managers," explains Sara Malak, co-founder and chief compliance officer of The Alpha Cooperative. On one track, the firm provides a fully outsourced operational infrastructure that new funds can use to get started and meet investor demand. On the other track, the firm becomes a fiduciary partner, providing investors with fiduciary relationship that has been fully vetted.
For smaller funds, the two track model allows th...................... To view our full article Click here
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