Raise More Capital Webinar: What You Missed

Last week, our team kicked off our Summer WebEx Series with a discussion on 'Raising More Capital with the Right Front-Office Tools'.  Emerging hedge fund managers were joined by prime brokers and lawyers as we shared trends on the alternatives industry and how emerging managers are leveling the playing field with the billion-and-above club when it comes to attracting and retaining institutional assets.

As an emerging manager strategizing about how to raise capital, it's important to note that well over 4,800 institutional investors across the globe rely on hedge funds to diversify and meet wider portfolio expectations.  These institutions already account for roughly two thirds of the total hedge fund capital and will continue to eclipse high net worth individuals as the industry’s primary sources of investment. 

The analysis was quick to point out that the top investors by capital should come as no surprise— they are the pensions, sovereign wealth funds, endowments and traditional asset managers.  In fact public pension funds have quadrupled the share of their portfolios invested in hedge funds over the past five years and private-sector pensions now account for nearly one of every five dollars invested in hedge funds globally, leaping ahead of asset managers, endowments and sovereign wealth funds as the second-largest buyer.  In fact one out of four of these institutions plan to increase their allocations this year alone.

As important as understanding your investors is understanding the 'manager selection' process.  Three to five years ago, your average investor asked questions about performance and pedigree.  Only a handful of technology questions were part of the DDQ process- the primary reason for selecting a manager came from repeatable performance.

But today, DDQs dedicate entire sections to the processes and infrastructure that are in place to safeguard assets.  Transparency has become the top criteria in the 'manager selection' process as investors demand more detailed information from managers.  The video above details today's selection criteria and walks through a demonstration of modern tools that are allowing emerging managers to market their fund to investors through an environment that provides the most granular, up to date details about your business while ticking the ‘institutional controls’ box as part of the DDQ process.

We hope you enjoy our analysis.  If you have any questions on the content, email us at marketing@lqiuidholdings.com or call 1-844-GET-LIQD.