"Performance is of secondary importance to perceived safety and a reduction of headline risk. As such, a high-quality product and strong historical returns are not enough for small managers to attract assets. They need an effective sales and marketing strategy. Managers must realize high-quality marketing is a critical element of a hedge fund's survival and success”.
Founder and CEO of Agecroft Partners.
HedgeweeK: 13 CONSECUTIVE years Marketing Firm of the Year
STARTING A FUND IS EASY. RAISING ASSETS IS NOT.
Success raising assets requires: MARKETING Experience, Expertise, Execution and PROCESS.
MOST NEW, FIRST-TIME AND SMALL MANAGERS ARE NOT PREPARED TO RAISE ASSETS.
81% of small managers do not have a marketing process.
76.4% of hedge funds 'tap out' their entire investor network within one year.
89% of hedge funds NEVER reach $100 million AUM.
Source: The Performance of Emerging Hedge Fund Managers (SSRN)
First-time managers in VC and PE only received 5.7% of the total capital raised.
Marketing and raising assets for new, first-time and smaller alternative managers, especially those with AUM below $100 million, is hyper-competitive, complicated, complex and crowded.
There are plenty of attorneys, accountants, service professionals to help a new, first-time or smaller manager create the documents and infrastructure to launch a fund ready to receive assets but marketing and raising assets are “solo" efforts for new, first-time and small managers.
WHY COMPLETE THE "MARKETING ALPHA" PROCESS?
A new, first-time or small manager, especially those with AUM less than $100 million AUM must be fully-informed with the FACTS of marketing to succeed raising assets.There is an enormous amount of hype, noise, myths, fiction and completely wrong information about what is required for new, first-time and smaller managers to raise assets. Consequently, even managers with pedigree and deep experience at larger firms that have significant assets under management struggle to raise assets when starting their own fund/firm. The majority rarely get AUM beyond the manager's personal capital along with small amounts from the "family and friends" circle.
"MARKETING ALPHA" DELIVERS THE "MANGER-SPECIFIC" FACTS ABOUT RAISING ASSETS
The requirements, skills, complexities and costs of raising assets in a hyper-competitive and crowded climate involves numerous qualitative and quantitative factors that go well-beyond simple performance as the sole allocation driver. Private wealth and institutional investors have idiosyncratic demands and employ deeply invasive due diligence. As such, the ability and difficulty raising assets is often grossly misunderstood and under-estimated by most new, first-time and smaller managers.
"MARKETING ALPHA" prepares and positions a new, first-time or small manager to succeed raising assets by covering every strategic, tactical, operational, financial and regulatory detail about the marketing process for sub-institutional managers, especially those with AUM less than $100 million.
Critical deliverables of the process are the "manager-specific" marketing answers, strategies, tactics, tools, guidance and instruction that equips the manager to consistently execute the marketing process at the high level required in a hyper-competitive and crowded fundraising climate filled with risk averse, stringently selective and idiosyncratically demanding LPs.
FOR NEW , FIRST-TIME and SMALL MANAGER THE PROCESS:
THERE IS NO GUESSWORK INVOLVED: DATA-DRIVEN EXECUTION
A core aspect of the process is use of high-integrity qualitative and quantitative independent research combined with 25+ years experience to support all marketing and fundraising advisory, instruction, training and execution. This immediately eliminates hype and noise, prevents mistakes and stops wasted time, effort and money, so the manager can raise assets faster, easier and less expensively.
Fundamental aspects of the process and engagement are candor and accountability, which eliminate false beliefs or delusions about the ability to raise assets, the length of time it takes to raise assets and the real costs involved raising assets. Candor and accountability insures the right things get consistently executed the right way, which forms the basis for high-performance and results.
The process entails working side-by-side and one-on-one with a manager to completely insure they have the step-by-step and day-by-day consistent, high-level marketing process execution mandatory supported by 25+ years experience and expertise along with the engagement skills and relationships that position the manager to raise assets faster, easier and less expensively by helping the manager put in place my proven marketing process that has raised billions for new and small managers.
TOPICS TO BE DISCUSSED IN CONSULTATION, ADVISORY & INSTRUCTION:
GET REAL.GET READY.GET RESULTS.
SCHEDULE A 30-MINUTE INTRODUCTORY "MARKETING ALPHA" PROCESS BRIEFING
BRYAN JOHNSON, MANAGING PARTNER
Founder and Co-Chief Investment Officer
LHG Capital Management
Hong Kong • Zürich •Abu Dhabi • Beijing • Melbourne
AUM grew from $20+ million to $1+ Billion in 3 years