1. Secrets of Effective Capital Raising
BREAKOUT SESSION
Secrets of Effective Capital Raising
Meredith Jones
Founder
MJ Alternative Investment Research

2. Secrets of Effective Capital Raising
Meredith Jones, Founder
MJ Alternative Investment Research

3. Targeting the right investors at the right time
Today’s Workshop
Targeting the right investors at the right time
Effective strategies for first contact
Keeping in touch – balancing pestering with persistence
Asking for feedback
Getting to yes (or no)

4. Hierarchy of AUM Prospecting
Big Dogs (Pensions)
E&Fs
HNW/Family Offices
Friends/Family
You

5. Exceptions to the Target Rule

6. The Asset Raising Conundrum
Three possible problems exist in the asset raising process:
Supply – You don’t have enough contacts/prospects
Messaging – You have great contacts but you don’t know how to communicate effectively with them
The “Big Bad” – There is something in your story that is a capital blocker

7. Building Contacts
Databases
Conferences
Marketers (internal & 3PM)
Media (social & traditional)

8. Supply - Databases Listing Databases Contact Databases
eVestment/HedgeFund.net
Barclay’s Global HedgeSource
Eurekahedge
Hedge Fund Intelligence
Lipper Tass
Hedge Fund Research (HFR)
Morningstar Altvest
Cogenthedge
Preqin
Contact Databases
Finsearches
MMD
BrightonHouse
Family Office Club
Listing Databases (FOFs)
Preqin
NACUBO
And others…

9. Supply - Marketers
Sources: MJ Alts

10. Supply - Conferences
 Will this event attract my target demographic? How has the event been attended in the past?
 Should we highlight our firm by speaking or just “work the room?”
 Can you get the attendee list in advance to plan meetings?
 Did you go through the speaker list in advance to target prospects?
 What materials will I provide to prospects at the event? How will I follow up with prospects?
 Do I have my 30 second and 5 minute “elevator pitch” honed to best showcase my competitive advantages?
 Am I sending the right people to the event?
 Do any of my service providers offer discounts or passes to the event?
Sources: MJ Alts

11. Emerging Manager Monthly Pensions & Investments
Supply - Media
Hedge Week
Infovest21
Opalesque
Hedge Fund Alert
Emerging Manager Monthly
Pensions & Investments
Foundation & Endowment News
Fund Fire
Mainstream media

12. Building an Effective Message
ONE -Thou shalt not create a pitch book longer than 25 pages or shorter than 17 pages. TWO – Thou shalt include your contact information. THREE – If thou can say the same thing about other funds, it doesn’t belong in your first five slides. FOUR – Thou shalt remember Miller’s Law. FIVE – Thou shalt learn to use the slide master in PowerPoint so thy slides are uniform. SIX – Thou shalt include sample positions if thy legal counsel permits it. SEVEN – Thou shalt have slides on position/portfolio risk management &operational risk management. EIGHT – Thou shalt have thy pages numbered. NINE – Thou shalt ensure you articulate the following: who you are, what you do, why it’s a good opportunity, why you’re good at what you do, who you work with (service providers), what your terms are, how you manage risk, what your terms are and how you perform. TEN– Thou shalt use graphics periodically to make thy presentation visually interesting.
Sources: MJ Alts Analysis

13. Building an Effective Quantitative Message
Sources: MJ Alts Analysis

14. Delivering the Message
No texting
No cornering
No “cold” meetings – know something about your prospects
No getting angry
Use personal connections
Don’t be omnipresent at events
Remember the goal – ANOTHER DATE!

15. Following Up With Investors
Rule One: Ask the potential investor when and how they’d like to receive follow up information from you. Rule Two: Follow rule one.

16. Getting to Yes (or No)
Denial – You’re not going to raise tons of money in the first 12 months.
Anger – “Call us back when you hit XXX in AUM…” HOW DO I GET TO XXX IF NO ONE ALLOCATES?
Bargaining – Founders classes, seeders, fee reductions, SMAs, etc.
Depression – It’s ok to eat your feelings for a while
Acceptance – Of a big check or winning where you can.

17. Further Reading
For more blogs and other information on a wealth of alternative investment topics, please visit my website.