Managers that are actively marketing their funds must be willing and able to travel domestically and internationally to effectively canvass the global investor universe. Managers that are committed to meeting investors will have the most success raising capital because these managers are not limiting themselves to a small circle of friends and contacts.
The world is increasingly interconnected and the alternative investment industry is no exception. Investors of all types—pension plans, family offices, and corporations—and in all regions are looking to diversify their assets using alternative fund vehicles. The managers that are not only calling and e-mailing prospects but also traveling have the greatest chance of reaching potential investors and conducting meaningful business. In fact, investors often welcome the opportunity to meet with fund managers that travel with the express purpose of speaking to investors about the firm’s products.
Now is an excellent time for managers to be traveling and marketing their funds. The most recent BHA data show that the number of investor mandates is increasing dramatically. As shown in the figure, during the first half of 2009 BHA received 1,000 mandates from investors; in the second half of 2009, the number increased dramatically to 1,400. With so many investors looking to evaluate funds, there has never been a better time to launch a marketing campaign, identify potential investors, and set up meetings with as many investors as possible.
