Your Marketer Is Not Your Enemy

In most fundraising campaigns, the outcome is defined as either a win or loss: either the marketer meets the manager’s goals and earns a fee or minimum thresholds are not met, and both parties end up empty handed.  This is…

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Do Your Homework

When managers engage a third-party marketer to assist in raising capital, many are quick to rush to an agreement with someone perceived to have a large Rolodex, who claims to know these investors well and presents their value proposition to…

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Avoid The Scorch And Burn Strategy

Typically, when an emerging manager begins the fundraising process, they target their closest friends and business contacts, or “low-hanging fruit,” to get their fund launched. When the committed capital from their warmest relationships falls short of the goal, the manager…

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To Pay Or Not To Pay, That Is The Question

While there are many pros and cons to ponder when considering whether to engage a placement agent or marketer to assist in early-stage fundraising, the existence of a retainer should not be viewed as a negative aspect. Expecting a high-quality,…

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First-Time Funds Rarely Get Second Chances

The Fundraising Clock Is Ticking There should be a graph illustrating that the longer a first-time manager attempts to reach fundraising goals, the more skeptical investors become of the opportunity. Sadly, the inability to execute a fundraising campaign can cause…

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It’s Not “What You Know,” It’s “Do They Trust You?”

Surprisingly, securing an allocation for your first-time or spin-out fund may not be the most important outcome when speaking with a potential investor. During the fundraising process, we often witness managers damaging their long-standing relationships by opening with why said…

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The Role AUM Plays In Establishing Emerging Manager Credibility

AUM is Critical for Emerging Managers: There are few things more important to the credibility of a team launching a first- or second-time fund than getting to a respectable AUM. Young firms can survive average performance with a respectable AUM,…

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