Making The Most From Capital Introduction

Making The Most From Capital Introduction

Last week, I met with Sales executives at 6 different prime brokers.  Among the numerous topics we discussed (reporting, securities lending, etc.), capital introduction process was at the forefront.

The cap intro teams do not have the skill set and/or resources to revamp and improve each hedge fund’s presentation.  Here are two topics for hedge funds to consider:

• Improve the pitch book.  We’ve written about that here.  Additionally most capital introduction folks will offer a dozens of ideas during a 20-30 minute conversation.  We recommend using that conversation time to take notes and apply the most relevant ideas to your materials.
• Learn by example.  Most prime brokers have an inventory of hedge fund materials.  While they may not share those materials, ask for examples from successful hedge funds.  A good question would be to inquire about funds with similar strategies and similar target markets.  For instance, “In your experience, what are the most crucial selling points to make when selling an event-driven strategy to family offices?”

Most materials benefit from numerous rounds of revision.  These two tips enable hedge funds to begin at a better point than staring at an empty PowerPoint document after-hours.