Marketing Alpha: How New and Small Managers Succeed Raising Assets

Meeting the Marketing & Fundraising Needs of Sub-Institutional Alternative Managers
Meeting the Marketing & Fundraising Needs of Sub-Institutional Alternative Managers
Bryan K. Johnson
Founder & Managing Partner
STARTING A FUND IS EASY. RAISING ASSETS IS NOT.
SUCCESS REQUIRES A MARKETING PROCESS.
For new, first-time and smaller managers, especially those with AUM less than $100 million, the need to grow assets quickly and consistently is critical but MARKETING and RAISING ASSETS are overwhelming, hyper-competitive, complicated, confusing, complex and crowded.
There are currently 18,000+ U.S.-based hedge funds and 4000+ private equity firms in active fundraising and AUM growth is a constant primary objective for each firm.
The majority of new and smaller managers believe that performance will attract assets. Research shows performance does not attract assets but only brings a degree of attention.
There are literally thousands of smaller venture capital, private equity, private credit and hedge funds that display consistent out-performance on a risk-adjusted, peer, relative or absolute return basis but they struggle to raise assets. In fact, most new, first-time and smaller managers rarely get AUM beyond personal capital along with small investments from family, friends and minor amounts from a few social and professional relationships.
To make matters more difficult, there is an enormous amount of hype, noise, wrong information, myths and fiction about raising assets for new, first-time and small managers.
The failure raising assets is a direct product of poor understanding, implementation and execution of the "correct manager-specific" MARKETING PROCESS.
Speaking plainly, success raising assets depends entirely on consistent execution of "THE MARKETING PROCESS".
Let's be clear: "Constantly pitching performance" is NOT marketing and is NOT a process. The truth when it comes to the marketing process: Most new, first-time and small managers don't know what to do and how to consistently execute the "right way".
An important note: Many new and smaller managers have the expectation that "commission-only/performance/transaction/success fee-compensated" third party marketing (3PM) and prime broker capital introduction (Cap Intro) will be sources of marketing and capital raising assistance. However, for managers with less than $100 million AUM, the "marketing and capital raising processes" are “Do-It-Yourself” (D-I-Y) efforts. Research shows 3PM and Cap Intro are not options until AUM reaches the minimum institutional level of $150-$200 million.
While the marketing process is entirely "D-I-Y" for new and small managers, most are often highly-skilled in research, trading or some form of investing but do not posses the knowledge, skills, experience and expertise required to execute the marketing and capital raising (sales) processes at the level required in a hyper-competitive fundraising climate filled with idiosyncratically demanding, highly-skeptical and stringently selective investors. Even managers with experience working in larger firms with significant assets under management struggle to raise assets when starting their own fund/firm.
The marketing process for new, first-time and sub-institutional managers with small AUM is completely different than for larger, more-seasoned, institutional-level funds with sizable AUM. Marketing is now more complex, time-consuming, resource intensive and expensive. The commitment, requirements, complexities, demands, skills and nuances of marketing are numerous, often misunderstood and grossly under-estimated by new and smaller managers. It now takes a data-driven, structured, disciplined, focused and consistently well-executed MARKETING PROCESS along with patience, persistence and sharp interpersonal, presentation, communication and engagement skills for new, first-time and smaller managers to consistently raise, retain and expand AUM.
There are 40,000+ institutional allocators globally and 55,000+ individuals and families of private wealth with assets exceeding $30 million in the U.S. alone. There is simply a huge universe to cover tactically. Moreover, the requirements and demands of institutional investors and private wealth are dynamic, stringent and idiosyncratic. As such, strategically understanding how to engage by knowing who to speak to, when to speak to them, and how to speak to them to build a relationship in order to achieve TRUST and ACTIONABLE CONVICTION is essential. However, most new, first-time and smaller managers do not have full clarity and granular perspective of investors nor an acute grasp of fundraising on a “manager-specific” basis. The lack of information, insight and intelligence into investors and the capital raising climate as it pertains specifically to the manager/fund is basically flying blind and leads to expensive and fatal mistakes. As a result, the vast majority of new, first-time and smaller managers experience chronic struggle and failure raising assets.
SOLUTION = PROCESS = “MARKETING ALPHA” = RESULTS.
Since 2010, Johnson & Company has been the ONLY firm with a "proven marketing process" that meets the capital raising requirements of "sub-institutional", alternative asset managers: New, first-time and smaller managers.
Johnson & Company delivers a "proven marketing process" for "sub-institutional" managers to raise assets efficiently, economically and expediently.
The process is comprised of 25+ years experience, expertise and skill marketing alternative assets supported by high-integrity independent research and data that drives intelligent decisions, high-impact investor engagement and consistent execution. That's "MARKETING ALPHA":
For new, first-time and small managers serious about success raising assets, THE MARKETING PROCESS must be priority #1 and "MARKETING ALPHA IS VITAL".
Johnson & Company is uniquely and holistically equipped to help new, first-time or small alternative asset managers consistently raise, retain and expand AUM faster, easier and less expensively but most importantly, successfully with a structured, disciplined, focused and proven marketing process.
If you are a new, first-time or small alternative asset manager, that wants results raising assets, I welcome the opportunity for a candid, no-nonsense conversation.
Continued success,
Invest time to carefully review the resources below. They are instructional and contain immediately actionable guidance about marketing and raising assets.
Interview: Three mistakes that lead to a new, first-time or small managers early death.
An Overview of MARKETING For New, First-Time and Sub-$100 Million AUM Alternative Managers
Close Encounters of the Third (Party) Kind: 3rd Party Marketing & Sub-Institutional Managers
CONTACT:
Bryan K. Johnson
Direct: (512) 786-1569
Email: bryan@Johnsn.com
LHG’s results from the “MARKETING ALPHA” process, reflect the work, focus, discipline, dedication and commitment by Laurence Yang and LHG Capital Management. It is not intended to guarantee any client will achieve the same or similar results; rather, the testimonial represents what is possible. As with any process, results depend on the individual experience, work, focus, discipline, dedication and commitment of the client as well as conditions of the marketplace and numerous elements beyond the control of Johnson & Company.
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