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What’s up, everyone? Today, we’re covering some highlights from Lincoln Archibald’s speech at Fund Launch Live 2024: The 4 Pillars of Your Investment Offering.
Yes, this is free access to a Fund Launch Live speech – so listen up!
And click here to listen to the full recording!
Introduction
Today, we’re talking about private market investment offerings: this is your deal or your product that you’re taking to market.
You need to sell your investors on this product.
There are a million things you could talk about in your offering, but I’ve narrowed it down to 4 core pillars!
Whether you’re on your first fund or your 50th, it’s all about the fundamentals.
#1 Sell the Investor on Your Asset Class
The 5 core asset classes are hedge funds, private equity, venture captial, private credit, and real estate.
Make sure that your investors understand your asset class.
Additionally, they need to know your sub asset class.
If you’re on your first fund, I highly recommend only sticking with one asset class.
Establish yourself as an expert before you venture too far.
Tell and show the investor why your asset class is perfect for them right now.
#2 Sell the Investor on Your Strategy
How are you investing?
What way are you attacking the market?
Which alpha are you capturing: analytical, behavioral, or informational?
Last week, I pitched 20 family offices. Every single one of them asked me about deal flow.
I think the best edge you can have for your fund is a proprietary source of deal flow.
#3 Sell the Investor on Your Team
Who is doing the investing?
Ask yourself, “What is brought to the table by each of the individuals on my team?”
Here’s what I think teammates can bring:
- Experience (years in the field)
- Expertise (insider knowledge)
- Track Record (deal history in your asset class)
- Capacity (ability to deploy capital)
Bring in advisors if you need to, whether they are active or passive!
Recruit an operator if you’re lacking there!
A sophisticated investor wants to see that you have depth on your team.
#4 Sell the Investor on Your Structure
The structure isn’t going to make a deal, but it will certainly break it.
It’s a necessity that can’t be overlooked.
I’ve underwritten amazing funds with great track records, that somehow have terrible management fee structures or enormous expenses.
Those red flags are important enough to break a deal.
Investors don’t want to lose money, but they certainly can with a poor fund structure.
Conclusion
So, the 4 pillars of your investment offering are selling your asset class, strategy, team, and structure!
Click here to listen to the full speech!
If you want more free content like this, visit the Fund Launch Blog!
Or, if you’re ready to start or scale your own investment fund, visit Fund Launch!
Thanks for stopping by,
Want to get direct guidance for your fund? Schedule a time with my Fund Advisors!
DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the authors.
