Capital Raising Season: Back-to-School Edition for Fund Managers
10 weeks before Thanksgiving hits. It’s time to saddle up for this mighty important stretch: the crucial period to attract new investors and have re-up dialogues with your existing LPs... the clock’s already ticking.
If you’ve been kicking the can down the road and find yourself with marketing materials that look less than impressive, it’s too late for a full revamp. A quick refresh will do (we can help...), but focus on messaging.
How your dynamic strategy navigates the new regime of greater macro volatility
How your asset class + strategy is stress-tested for both long-term and tactical (6-12 month) market scenarios
Your non-correlation story, as investors anticipate the headwinds of a general slowdown and the risk of a recession
Save the revamp for another time when things are quieter, such as in the lead up to year-end. Choose your battles and based on your AUM / marketing budget:
Larger Managers
Multi-channel (i.e. email, LinkedIn, webinars, etc.) and highly-targeted messaging. Use your scale and resources to your advantage... smaller managers don’t have the luxury to spend across multiple channels. The key here is to ensure consistency in messaging by segment.
And then when casting a wide net: publish a white paper. In the long-run, you’ll have a Content Hub; your central repository of original content which showcases your views across market cycles.
Then you have events, though your partners (RIAs, vendors, etc.) might already have their own events lined-up. With a larger AUM (presumably bigger brand name), they might just want you there to boost attendance. Consider co-hosting or sponsorships to expand your reach and access a pre-qualified audience of potential investors.
Smaller Managers
Tend to your own herd first. You have the advantage of being able to build more personal relationships with investors; use a post-summer check-in with existing investors to share updates on fund performance, new opportunities, and how you’re hedging against headwinds. Ask for referrals.
Aim small, miss small: Try hosting 3 lunch-and-learns over the next 10 weeks. It’s a low-cost, high-touch type of engagement where you’re in full control of branding and logistics, versus attending an expensive conference. Prospective investors also feel less leery about meeting, knowing that there’s a community of other interested LPs who they can also network with.
A note about Family Offices: They’re set to reduce cash holdings and boost allocations to riskier assets in the next 12 months as they pursue greater returns (source: Goldman Sachs). With Family Offices continuing to carry meaningful allocations to alternatives, consider what a curated database can do for you: https://familyofficelist.org/.
In this back-to-school season, it’s critical to remind yourselves that there are only 10 weeks left... no time for any warm-up laps. With alternative investments in focus, it could be one for the record books. All the best for these next few intensive weeks!