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By: Andre Boreas, CEO Quadsight Partners
…the private equity fundraising market is still in a state of bifurcation. The largest, brand-name managers are receiving the majority of investor commitments, with smaller managers – particularly first-time funds – finding it difficult to raise capital.
Preqin - July 13th, 2014
…the 500 largest hedge fund managers control 90 per cent of industry assets, with the 505 hedge fund managers that run at least $1bn responsible for $2.39tn of the industry’s $2.66tn total assets.
Hedgeweek – January 20th, 2015
Raising assets is hard. As the big firms get bigger and with so many funds scrambling to get noticed by the investor community, it’s easy to lose sight of what the fundamental challenges are and, in turn, recognize what is and what isn’t working. So after my 15+ years in the institutional investment industry, these are some of the rationales I have heard as to why a manager can’t raise assets.
#1: "We’ve never actively marketed our fund"
I have heard this many times in my career. I suspect this is more about not knowing how to market a fund and less about actually trying to. It’s the classic 'what came first the chicken or egg’ conundrum: investors want to see a three year track record with $300 mil AUM – but how do you get $300 mil AUM if you can’t already show it? The classic process is to beg, borrow, steal (well, maybe not steal) from friends and family, move up to...................... To view our full article Click here
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