Experienced Portfolio Managers only

Discussion in 'Announcements' started by Robert Morse, Dec 25, 2016.

  1. wintergasp

    wintergasp

    Man you kidding me you quoted half the sentence
     
    #101     Jan 3, 2017
  2. Robert Morse

    Robert Morse Sponsor

    This opportunity is for employment, so no management fee. Most of the hedge funds and CTAs we deal with charge either 2/20, 1/25 or 0/30. Most are still 2/20. It is common for large allocators or initial angel investors to get a better rate. I've seen as low as .5/15 for $25mm or more. The idea is to get to $100mm ASAP to attract third party marketers.
     
    #102     Jan 3, 2017
  3. ElSegundo

    ElSegundo

    Did u ever meet anyone who was funded by a 3rd party marketer? I thought the 100 million level was to pass the institutional interest threshold.
     
    #103     Jan 3, 2017
  4. Robert Morse

    Robert Morse Sponsor

    Yes, 100MM is an important level. I said that too. One of our clients grew from around $6mm of their own money to $240mm in the last 7 years. The last $150mm was all from the third party marketers. I've gotten paid for it too, at my old firm. We are not approved for it yet at LS. I only raised about $2.5mm for CTAs and $4mm for hedge funds and managed accounts. Not a lot, but not our primary role. Some we charged a 20% fee and others we got execution dollars.

    The big guys that can direct hundreds and millions of dollars with phone calls, expect you to raise the first $100mm, and have a full team in place or the large allocators won't review your docs and then meet you.

    There are a few family offices out there that also do cap-intro. They will invest the first $25mm or so and then market you for a part ownership of the GP. They want to be first in, but are very selective and controlling.
     
    #104     Jan 3, 2017