1. THE ANATOMY OF AN ALLOCATION
Raising Institutional Capital in 2018
CapitalCon June 22, 2018

2. Castle Hill: The Art & Science of Capital Raising
Institutional capital raising and strategic marketing firm
100% partner-owned
22 registered representatives – Castle Hill / 4 Affiliates
Active across major investor channels that invest specifically in alternatives
PLATFORM PRIVATE
WEALTH
ENDOWMENTS
&
FOUNDATIONS
INDEPENDENT RIAs
CORPORATE
PENSIONS
INSURANCE
COMPANIES
SWF/ PUBLIC
PENSIONS

3. Castle Hill: Four Main Verticals
LIQUID STRATEGIES
ILLIQUID STRATEGIES
PRIVATE PLACEMENTS
LIQUIDITY SOLUTIONS
Hedge Funds
CTA’s
Private Equity
Real Estate
Venture Capital
Private companies
Real Estate Partnerships
Pre-IPO shares
Hedge Fund & Private Equity Secondaries

4. Anatomy of an Allocation: How the Process Worked
CLIENT
Esoteric, niche, secondary investment strategy
Raising Fund V
Defied easy “bucketing”
Nationwide effort!
Over 100+ introductions
45 meetings
4 allocations – SFO/E&F
INVESTOR
Prestigious NY-based university endowment
$1+ billion
Used OCIO firm for research support
Rebuilding private equity portfolio
Active board involvement
Highly skeptical

5. Investment Targeting: What I Looked For?
Are they actively allocating to the asset class?
Is there capital at play?
Are they open to a new strategy?
When they say that they want niche, how serious are they?
Does the timing work?
If they’re interested, can they act?

6. RELATIONSHIP + PROCESS = SUCCESS

7. Relationship + Process = Success
YEAR 1: Introduction
Relationship + Process = Success
3 Follow-up s to schedule coffee
CHCP did not have right product set
Did not actively engage
8/1/16
1.1
1.2
1.3 1 1 1
Met CIO at E&F workshop and exchanged cards

8. Relationship + Process = Success
YEAR 2: Engagement!
Relationship + Process = Success
8/6/17
9/6/17
10/25/17 2 3 4 3 3 4 4
Phone call
Caught up at a second conference and agreed to meet in the future
Set 1st follow-up CIO offices
*RESPONSE
CHCP/CIO
2 Action Items
Sent follow-up with marketing documents
Suggested 11/7 for an in-office meeting with client
3 s 8

9. Relationship + Process = Success
YEAR 2: Face-Off!
Relationship + Process = Success
10/26/17
11/7/17
11/8/17 5 5 6 7 6 3 4 7
Investor signs NDA with comments to gain access to the data room
Thank you notes and follow-up questions:
Meeting #1
CIO visits team at client offices
CHCP Attends
Basic Introductory Questions
“Pro forma – Best/Worst case scenarios”
“Review all deals”
“Portfolio outcomes”
5 s

10. YEAR 2 Q4: Digging Into the Details
Relationship + Process = Success
11/13/17
11/22/17
12/19/17 10 8 8 9 9 3 10 4
CHCP Follow-Up
Follow-Up
Meeting #2
Concern that there won’t be enough time for ODD / legal
Next meeting
Follow-up more info
Meeting with client CEO in client office
Multiple s exchanged
OCIO representative attends
RESPONSE
“When is final close?”
5 s
10 s

11. YEAR 3: Gaining Momentum
Relationship + Process = Success
1/5/18
1/8/18
1/9/18 11 8 12 13 9 3 10 4
Meeting #4
Meeting #3
RESPONSE
OCIO sends note requesting full day ODD team visit
Follow-up meeting with the CIO & OCIO Representative
Takes place at the OCIO firm’s offices
ODD onsite for 4 hours
Completely independent of research function/Chinese Wall
Veto Power
“When is final close?”
10 s 8

12. YEAR 3: Getting Into the Weeds
Relationship + Process = Success
1/10/18
1/23/18
3/23/18 14 15 16 8 3 9 10 4
s and phone calls discussing share class elections
Meeting #5
Detailed list of follow-up questions:
Meeting on-site at client to meet all the team members
Side letter
Fees/expenses
Duration
Fee schedule
CFO
CCO
Every analyst
Even the interns 8
10 s 8
8 s
Focus on culture!

13. Relationship + Process = Success
YEAR 3: Life Intervenes
Relationship + Process = Success
April ‘18
May ‘18 17 9 18 3 10 4
Multiple drafts of side letter exchanges
Pushed final close from 3/31, which was necessary for governance purposes
Passover!!
Received final confirmation
$15 million allocation – May 1
DONE

14. Driving the Process and Lessons Learned
Polite persistence with both client and investor
Facilitate communication with both parties
Manage expectations on both sides
Attentive, not annoying
August → May 2018
5 Meetings
~10 Phone Calls
~100+ s

15. Andrew Saunders, CAIA Co-Founder, Senior Managing Director
(212)
216 E 45th Street
New York, NY 10017