How's Your Capital Raise Going?

The majority of G7 located funds, large and small are struggling to raise and deal gestation periods have moved out to over a year.
 
If it’s tough going for Carlyle, Bobby Jain and TPG it’s going to be super tough for boutiques and the emerging firms right?
 
Maybe…
 
Buck the trend with our time-tested playbook for fund management firms & founders under 5 years old.
 
Performance doesn’t raise money:
Marketing = moolah and Sales = shekels
Change your focus from returns, ratios and yields to narrative & stories
Your numbers are table stakes not sales aids   
 
Network relentlessly but clinically:
Elect 2 people in your team to go to everything all the time
Attend gatherings and events where you can network most effectively – not the one’s closest to the office
 
Spend 2x more on marketing:
If you have lots of rock star PMs and very few MVP marketers, you will raise very little money
 
Nuke the newsletter:
Focus on LinkedIn and get a premium subscription
Post 3x per week and build your tribe
Tell stories about you, your team & your clients
Cancel your market commentary newsletter with immediate effect
 
Ditch the pitch:
Create talking points and conversations
Stop presenting, pitching or creating one sided linear moments

The stats tell us that 80% of people in a ‘pitch’ meeting switch off after 8 minutes (and the other 20% left the room inside 3 minutes…)
 
Audio visual:
Replace your decks with podcasts and videos
Keep it real & get them to market fast – record on your smartphone, don’t over produce
 
The wrong investor profile:
If your pipeline is telling you they can’t look at you until you have 3 years track and a 9 figure AUM, you’re working with the wrong pipeline
Create an identikit image of the early adopters you already have and focus on multiplying that fan base       
 
HNW & UHNWI:
The fastest growing segment of wealth globally

From 2023 data by Bain, Preqin and GlobalData there is c.$150trillion of private wealth and $140trillion institutional capital. The first time in history that the mass affluent to UHNWI group has grown larger than its storied brethren.                 
Ignore institutional, most early stage funds will not win mandates from institutional investors   
The most successful funds in the world are creating ‘top end of retail’ type compliant products, you should too    
 
Look East & localise:
The real volume of accessible and mobile capital is no longer in G7 but in the Middle East and Asia
If you don’t have distribution in these areas, you will underperform your peers who do
Your next hires also want to be in fiscally efficient, family friendly & exciting locations like UAE and Singapore – recruit and retain by opening up here   
  
Hosted not in-house:
Setting up your fund? Go to a fund host and use their umbrella
Need world class regulatory and compliance guidance? Outsource
Want a big name CFO or GC? Get a fractional professional   
    
The hair stands up on my neck every time we meet a fund manager willing to embrace this process.

 

We know it’s hard and new. But if you’re up for it, we’ll get in the trenches for you and help you execute every single step.  
  
For a founder to founder conversation about your fund or firm, reach out to us here