Hedge fund capital introduction
Hedge funds intro | finance & capital markets | khan
The Hedge Fund Marketplace is a free service offered by IBKR to all hedge funds who use IBKR as their primary Prime Broker, have at least $3 million in assets under management, and have an audited track record of at least one year or have done their trading at IBKR for the previous year.
The Hedge Fund Marketplace at Interactive Brokers is an online version of a traditional Capital Introduction program who allows hedge funds that use IBKR as their primary Prime Broker to sell their funds to IBKR clients who are Accredited Investors and Eligible Purchasers, as well as to other hedge funds who already market their funds at the Hedge Fund Marketplace.
Hedge funds, venture capital, and private equity | finance
The subprime mortgage crisis has significantly reduced the amount of money available to hedge funds. Many hedge funds rely on capital introductions and margin lending provided by their prime brokers. While industry players obtain financing from a variety of sources, including wealthy individuals, many hedge funds rely on capital introductions and margin lending provided by their prime brokers. However, according to the new FINalternatives Prime Brokerage Survey, capital introductions and margin lending services provided by prime brokers fall short of client expectations.
According to the study, one-third of hedge fund managers think their prime brokers’ capital introduction services are “bad.” In reality, only one out of every four people thinks such services are “fair,” and only one out of every six thinks they are “healthy.” Just one out of every nine people feels their prime broker’s capital introduction services are “excellent.” A closer analysis of the hedge fund fundraising dynamic sheds more light on the phenomenon.
Hedge funds’ capital-raising requirements expand in tandem with their scale. Over 80% of hedge funds in their early stages of capitalization are now planning moderate to aggressive growth, and the percentage of funds planning moderate growth rises as funds rise in size, while the percentage of funds planning cautious growth decreases to zero.
Webinar – launching an incubator hedge fund
Far Hills Group’s sales process is designed to be effective, with the intention of saving time for its manager-clients when it comes to investor acquisition. Value-added phone calls are the primary method for beginning the sales process. A critical part of the process is sending follow-up e-mails with informative, manager-specific data packets. These data packets are analytically tailored to each manager’s investment process and strengths. Far Hills Group encourages its executives to travel as part of its asset-raising strategy. Although travel is often a time-consuming and distracting activity, it has been shown to speed up the sales process when strategically designed and implemented. Far Hills Group is committed to working with Capital Introduction Groups in regards to its hedge fund managers and believes that their activities are a significant avenue of exposure, especially for less developed managers. While Cap Intro is a good place to start, Far Hills Group’s goal is to move the sales process forward beyond introductory meetings before a transaction is completed.
Context’s flagship capital introduction conference: ron
Capital introduction teams at prime brokers have continued to act as “quasi promoters” for their hedge fund clients in many, if not most, situations. The goal tends to be to get their clients in front of as many investors as possible, which often entails not taking the time to fully understand what investors are looking for.
Brett Yarkon (pictured), Head of Capital Introduction, explains, “We’re not working as distributors of knowledge or products; we’re trying to be a source of legitimacy for the allocators.” “We assume that by focusing on allocators and taking the time to consider their underlying mandates, risk/return tolerances, and the hedge fund manager profiles they gravitate to, we will be much better placed to show them ideas that are suitable for them.”
With the increased number of hedge funds on the market, it has become more difficult for allocators to find the best managers for their mandates. Cowen has built a strong relationship base “and achieved success in keeping our clients in front of the potential right money at the right time,” according to Yarkon and his team, by implementing a customized cap intro approach that focuses on both the fundamental characteristics of hedge fund clients and the needs of allocators. The team’s primary aim is to help the firm’s clients sustain a highly focused outreach to allocators.