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Bailey McCann, Opalesque New York: For managers looking to raise a new fund after the crisis, marketing efforts will need to be significantly different, according to delegates at the recent Opalesque Texas Roundtable.
"Most of the smaller managers
come to the whole fund-raising and marketing challenge with the wrong orientation. They all start out, I shouldn’t say
all, but the vast majority start out with "All I have to do is put up numbers and the world is going to be the path to my
door," says Bryan K. Johnson, of Johnson & Company. He works with emerging managers on marketing efforts and fundraising.
He says going after institutional dollars too early is a waste of resources. "The second biggest mistake that they make is they do what I refer to as chase institutional unicorns. "Because I've got
20 or 30 or 40 million and it’s all about performance in my mind, I'm going to approach consultants and institutions and
they're going to look at my numbers and fall in love with me and I'm going to get $50 - $100 million tickets and I’ll be
500 million before you can shake a stick." That doesn’t happen."
Instead, for emerging managers to be successful, they will need to focus on building a strong business that can pass a due diligence smell test. "Due diligence has expanded strategically," Johnson explains. "They're looking at more things. It’s expanded tactically. There are more
people involved in the discussion, in the analysis, and that leads ...................... To view our full article Click here
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