Before you convince me I should shoot myself... For the startup funds out there, you should know there *are* institutionals/FoFs out there who look at funds in my range. I know this not by rumor, but because I've spoken to them, and due dil is proceeding with a few. I've been told straight-out investment of $20mm-$30mm in a fund with a few million in assets isn't impossible (but would be structured only as a SMA). I *haven't* been told under what terms these investments would be... these aren't seed-deals requiring equity, but perhaps reduced fees? Don't know. There probably aren't a lot, but they do exist.
No question about it. We have a different target clientele. It's all good. IBIZA is awesome, by the way, I still have that photo of you with the bunnys at the mansion-- very cool!
Great, I hope it works out for you. I can only speak from my experience and I am far from an expert in this business. Good luck!
've been told straight-out investment of $20mm-$30mm in a fund with a few million in assets isn't impossible (but would be structured only as a SMA------- -------------------------------------------------------------------------- A: not trying to tell you to shoot yourself....but Surfer has a point. B: You staring up a Hedge Fund, with Zero record of achievement? Let me explain what I have learned through the last 7 years of raising capital. Unlike the Punters, Nobs, and idiots on ET, the rest of the "Wealth" code have very little respect for the "Markets", and to say the least very little Respect and Trust in the US markets. Times have changed my friend. Everyone knows the markets are not only manipulated but also are not predictable. The ratio to error is huge and there is no "incentive" to take the risk. The Political situations, across the globe are Anti-Free markets. The US Market is not only controlled with all kinds of bullshit, under the radar manipulation but the players like GS have inside info all the time. Of course they will deny it but they are in bed with the Fed. The Germans now own 60% of the NYSE! And the talk of taxes on more taxes with short term and long term trades are not off the table. The wealth that I know want to be able to touch, smell, taste their wealth. LAND, OIL, GAS, INFRASTRUCTURE, SHIPPING LINES, WIndMills, Manufacturing Plants, Commercial RE, Gold, Copper, Silver mines... HARD ASSETS. Hard assets are what keeps one's wealth after they build it. The game of "I wana be rich like Johnny and invest in a Hedge Fund " is over. The Jig is up. The smart money left the theater along time ago and many think the movie is still playing. But hey, I'm biased because I only deal in Hard Assets. What do I know? Paper money and computer numbers do not.
Gotta agree. I am a RIA, and the last 3-4 years have changed the "ballgame" ten fold. The ultra wealthy aren't nearly as stock invested as they once were. Now many of the very hnw's are doing just what you said: they're investing in things they can touch, feel, and smell. For example, one of my Clients owns twelve large car dealerships. He has a lnw of $125M. Instead of the former calls we had together when he would say, "ok, I've got a check here for $5M for my account, when you coming down to get it?" He now says, "I hate this David, but I'm done with stocks. I'm going to start acquiring troubled dealerships, and build three car 'outlet malls' in the coming years." The news media, and the market nanipulation that even the not so market savy can see plain as day is what is behind this imo. The ultra hnw's are people who don't tend to trust what is pitched to them, and if stocks and hedge funds are being pitched, that's a very tough sale today vs. four+ years ago. Don't know if the very hnw's are ever going to come back to equities like they used to... Once that trust is shattered as it has been over the last few years, the hnw's I know are saying no to anything stock market related when it comes to adding new $$$$$$ EMRGLOBAL, I believe your above statement is spot on, and the shift to hard assets is going to be something that sticks around while at the same time OUR markets are toyed with to the point where Mr. 150+M says, "stocks? No and hell no!" Sad! Last, can you believe a 200 year old institution (nyse) is now majority owned by the Germans?!?!? My WWII Grand Father would be doing backflips in his grave if he knew this...
Here are some basic rules for raising funds and not wasting time with bozos The 3 types of people you will meet in the fund building biz 1 Poser: (The person who Wonders what happens) 1 Person is a wannabe. 2 Unsophisticated 3 Certifiable Time Waster 4 Certifiable Money Waster 5 Certifiable Relationship /Credibility Destroyer 6 Zombie (The Walking Dead) -0- Professional Reputation (-0- known / documented projects) 7 Unknowledgeable (Wouldnât know how to close if a diamond fell in their lap.) 2. Player: (The person that Watches what happens) 1. Person is a non professional Scout / Broker 2. Person knows -0- truth (too far removed from the hub to be reliable) Daisy Chain Gang Banger. 3. Only searching for a quick path to retirement (The quick kill) 4. Person has limited Actual Functioning Connectivity 5. Person has never been a principal leader in a deal (known / documented) 6. Person has -0- following (no recommendations) 7. Person has a toxic hobby (wasting / jeopardizing your time, money & credibility) 3. Producer: (The person that Make things happen) 1. Person has (known / documented) closed Projects 2. Person has direction (Specialty) 3. Person has diverse connections (is a hub for connectivity). 4. Person Has Professional Reputation (known / documented Integrity, Trust) 5. Person has little desire or time to spend beyond specialty. 6. Person will assist in a limited but very focused capacity beyond specialty. a. Constantly seeking positive progress on multiple levels. 7. Person Loves to assist you as long as (1 or more factors are present) a. It makes him/her look good to a desired targeted audience. b. Doesnât take too much time or any of his/her money c. Likes you d. Likes your project e. Can profit from his/her actions (Profit is an open word, not just money, power) f. Can make a notable difference / change g. Makes him/her feel good (unknown / personal reasons) 7 Day Funding Rule: 95% of the time this timeframe holds true. 1. Project proceeds to contractual level within 7 normal business days or it fails to EVER close. 2. Rewrite of contract due to renegotiations extends this time frame to within 3 business days per rewrite. 3. Rewrite: 3 time limits.
I think the real problem with "reaching out" to investors from a database unsolicited... isn't that a SEC violation?
EMR GLOBAL Do you market funds for other private equity funds or do you actually run your own Private Equity fund?
Cold calling is good Idea for getting new business but it depends on the quality of caller. If the person doesn't have the qualities of good caller results goes negative. To grow my business I made calls almost every day from 9am till 3. My first month was not good. Then I studied about cold calling that how to make it productive. Then I started it proper way, consulted to script writer, attended some training to improve results. I make more than 150 calls a day in my idle times in office. I always focus on follow ups because if you donât call right person at right time you lost the deal. As I am using android my sales dialer so I also can follow up when I am out of station. And today I am making 1-2 deals/ month.