The Fundamentals of Hedge Fund Management, 2nd Edition

CHAPTER 6

Marketing and Capital Raising

Before you launch your fund and create your strategy, you need to have a clear and concise marketing plan. Read that sentence 10 times before you go any further. Then read it again. Making a list is not enough. Check it twice and hope that assets come into the fund. You need to have a plan, a plan that includes a marketing pitch, a marketing strategy, and marketing ideas. Developing the plan can take time and it should be fluid. Paying attention to this area of the business is as important as any other area of the business. Remember, an engine can only operate with gasoline.

Once you have your plan in place, you will be set to begin talking about how you are going to raise money and develop your business from an idea to a reality.

The purpose of this chapter is to provide you with insight into how to create, develop, and implement a marketing plan for your organization. It will provide you with case studies that explore funds that are new or experienced in the marketplace, and will highlight a fund that faced a crisis of confidence in the marketplace. It will give you insight into how investors will view you before, during, and after the due diligence process.

The goal here is to provide you with enough information to demonstrate you need to be prepared to meet and work with investors.

The key to success in raising assets is a succinct and meaningful presentation, requiring perseverance. It comes down to one word: communication. You need ...