Fund of Funds Managers

BHA helps fund of funds managers by indentifying investors that are actively searching for a fund and the strategy and focus they are seeking. The funds of funds we currently service are:

  • Funds of Hedge Funds
  • Funds of Private Equity Funds
  • Funds of Private Real Estate Funds

Each one of these vehicles faces its biggest challenge when trying to source new investors. One resource managers commonly purchase to help with this task is alternative investor contact databases. Often used for marketing campaigns, these contact databases are typically out of date, which leads to low success rates. They also frequently require extensive in-house resources to execute e-mail or phone canvassing campaigns, which is inefficient and time-consuming.

Another option commonly chosen by managers looking to raise capital is third-party marketers or placement agents. This option can be a nonstarter for many midlevel and high-end fund managers that want to maintain client relationships in-house. Those managers that use outsourced marketing services report various levels of success. In addition, there is an industry-wide debate regarding the efficacy of third-party marketers and the associated business model. The result has been that many firms have created in-house marketing teams to replace the third-party marketing model. 

BHA’s investor mandate database helps fund of funds marketers by giving them the ability to source investors by region, sector, and category of investor. Managers can use key investment parameters to gain exposure to an entirely new investor market. For example, a marketer may have an established U.S. investor base and want to broaden its focus to Europe.

Whether you are a plain vanilla fund of private equity funds or an esoteric fund of hedge funds, BHA can help you find new investors by proactively researching our investor base. Our analyst team collects the most crucial pieces of investment data for funds of hedge funds, funds of private equity funds, and funds of real estate funds by speaking directly to investors interested in such vehicles. In addition to finding the most relevant data, analysts speak with investors every 90 days to make sure our mandate information is accurate.

Fund of funds managers can quickly identify new investors on the BHA platform through detailed investor profiles. Investor profiles provide a descriptive summary of investors’ current fund of funds interests within several key areas. These areas are highlighted in each investor profile and cover the following investment information:

  • Strategy of the fund
  • Sector interest
  • Region or geographic interest
  • Manager pedigree or track record preference
  • Lock-up preferences
  • Desired returns or performance expectations
  • Allocations sizes

In summary, BHA helps marketers in three ways. First, BHA’s matching technology facilitates sourcing alternative investors. BHA analysts are alerted during an interview that this investor is currently seeking a firm and product strategy that matches a client’s offering. Second, BHA’s filtering technology allows a fund manager to source investor candidates that are a good fit for the fund. Lastly, every BHA client is assigned a dedicated research analyst who acts as the firm’s outsourced marketing support staff. The BHA research analyst finds qualified investor leads for clients by canvassing the database and targeting investors. In addition, the research analyst focuses on special client projects, such as sourcing investors for upcoming marketing trips or vetting internal databases and updating investor contact information.

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