After I entered the job force at 18, I had money problems for quite a number of years. I earned a decent income, but I lived paycheck to paycheck and just felt like I would never get ahead financially. One day, determined to get ahead, I decided to record every purchase I made for a month to find out just where my money was going. I learned a hard lesson that day that small purchases here and there throughout the month really add up. I committed to a much smaller budget and began stashing savings away. Then, I researched the world of investing and made a few strategic ones with some of my savings. I am now doing much better financially, and I want to help others who need it, so I am starting a blog. Come back often for money management tips and tricks explained simply!
Capital raising is an intense and competitive process, but those who persevere can ultimately secure the funding they need to launch and grow their capital. Below are some helpful tips for emerging managers seeking to raise capital:
Go All Out
Emerging managers seeking to raise funds face a daunting challenge. In order to be successful, they must undertake a tremendous amount of outreach, meeting with potential investors and pitching their fund. This is a time-consuming and expensive process, but one that is essential for emerging managers who want to tap into the institutional investor market.
During the fundraising process, managers should focus on communicating their investment thesis clearly and confidently. They should also be prepared to answer questions about their strategy, track record, and team. Fund managers can increase their chances of success in the capital-raising process by staying focused and dedicated to their outreach efforts.
Tell Your "Why"
In the capital raising process, emerging managers should create content assets, like pitch decks, to help tell their stories in a concise and impactful way. These assets can be used in dialogue with potential investors to help explain the fund's strategy, objectives, and risk/return profile. In addition, they can also be used as leave-behinds following meetings or posted on a fund's website to provide potential investors with easily digestible information. By taking the time to develop high-quality pitch decks and other content assets, emerging managers can improve their chances of success in capital raising.
Have a Definitive Goal
When it comes to fundraising, emerging managers should be clear on what amount they want to raise and stick to it. This may seem like common sense, but many managers make the mistake of either asking for too little or too much. As a result, they can end up either falling short of their goal or making potential investors uncomfortable. Instead, it's important to have a specific target and craft a pitch tailored to that number. Doing so will increase your chances of reaching your goal and securing the funding you need.
Enjoy the Process
Fundraising can be a challenging but rewarding process for emerging managers. Enjoying the challenge and seeing it as an opportunity to build relationships with potential investors is important. By taking the time to get to know your potential investors and understanding their goals, you can create lasting relationships that will benefit both you and them in the future. In addition, enjoying the fundraising process can help you stay motivated and focused on your ultimate goal: raising the capital you need to launch your fund. So don't be discouraged by the fundraising challenges; instead, embrace them and enjoy the journey.
Contact a local fundraising service to learn more about capital raising for emerging managers.
Share28 September 2022
