RAISING YOUR KNOWLEDGE TO RAISE YOUR FUND
You may know that alternative asset funds, such as hedge funds or private equity funds, are some of the most profitable and competitive in the industry.
But one area that doesn’t receive much focus is the fundraising process itself.
Raising funds (usually, from institutions) is a very secretive and exclusive process, and knowledge of it is hasn’t been public for some time.
That is, until now.
In this course, we will shed light on how institutional fundraising works.
How funds are marketed, sold, how information is provided in data rooms, what is actually sold, and how allocations are closed.
And when they are, how specific provisions such as fees, key-person events, and bespoke provisions in side letters, such as MFN clauses, are negotiated.
THE PERFECT COURSE… FOR WHOM?
This course is targeted, naturally, at anyone who wants to master the fundamentals of the private equity industry.
More specifically, the ideal student for this course is someone who:
- Wants to learn more about how private equity funds/hedge funds are created, raised and negotiated;
- Wants to know all the possible provisions that can be negotiated when an investment is made in a fund;
- Wants to know more about alternative asset funds in general;
LET ME TELL YOU… EVERYTHING
Some people – including me – love to know what they’re getting in a package.
And by this, I mean, EVERYTHING that is in the package.
So, here is a list of everything that this course covers:
- The institutional fundraising process, from fund marketing, to information providing in data rooms, to due diligence and allocation;
- The context of fund marketing, including myths such as that keeping funds hidden will not attract regulator attention or will make the fund manager have “mystique” and exclusiveness, to actual regulatory roadblocks to fund marketing;
- The usual fund marketing channels and materials, from simplified versions of fund offering documents, interviews/features with the fund management team and CEOs, periodic updates and others;
- How to actually sell a fund to an allocator using the PPP model (performance, processes and persuasion). Focusing on performance, on the sophistication of processes (ideally, institutional-quality), but also leveraging my unique persuasion tools to better convince investors;
- What type of standard and bespoke provisions investors usually request, from changes in fees (management fees, performance fees, co-investment fees, many others), to complex clauses related to investment restrictions, secondaries sales, transparency requirements, fund financing restrictions, GP commit and devotion, GP removal rights, among others;
- How to negotiate provisions with allocators, from strategic tactics such as reducing allocation size or breaking up syndicated groups of investors, to “in-the-room” tactics such as Implementation Intention or empathy to disarm the other side and make them more receptive;
What you’ll learn
- How institutional fundraising works (the overall process from marketing to closing)
- How fund marketing is performed, including the usual materials and channels
- How a fund is actually sold, including specific components such as performance, processes and team credentials
- How custom information is provided, either requested by DDQs or provided in virtual data rooms to satisfy allocator requirements
- How provisions are negotiated at the allocation closing stage, from basic one such as management/performance fee to complex, bespoke ones in side letters
- None at all – just a passion for alternative assets and funds
Who this course is for:
- Any current asset management professional, especially in alternative assets
- Any newly-minted (or aspiring) fund manager that wants to optimize their fund marketing and fundraising processes
- Any professional that wants to know more about how alternative asset funds are marketed and raised.