3,2,1…Lift Off - Investment Fund Growth
Introduction
Sometimes you come across people who are technically brilliant in their particular specialist area but lack the knowledge or skills to successful attract new business. All they need is a little careful nudge or two to help them on to the right path.
A good example of this was the support we provided the founders of a start-up boutique asset management firm who were looking to launch an alternative investment fund to institutional investors and family offices across Europe & Scandinavia. Their proposed strategy was to invest in companies with good Environmental, Social, Governance (ESG) credentials and sell the shares of businesses with poor ESG scores.
Challenge:
The co-founders had extensive experience of working within major financial institutions in both London and New York and were highly skilled in the asset management process including stock selection and the management of risk. Where they needed some support was in the messaging to attract potential shareholders into the investment firm’s operating company. They needed to raise sufficient capital to hold within the operating company to satisfy the requirement of the UK’s financial services regulators.
Once the company was established and fully authorised, they would then need to find, and then present to, likely investors into the underlying investment vehicle. For both founders this was going to take them out of their comfort zones as it would be the first time in their careers where they would have to solicit capital from private shareholders and then raise sufficient day-one money to lunch the investment fund.
Solution:
For the first step to raise shareholder capital, we reviewed their presentations and fed back our suggestions to improve the clarity of both the ask and the offer. The second, and longer, stage was to support them in their plan to raise the €50 million required to launch the fund. This entailed helping to draft the ‘pitch book’ that they would share with potential launch investors to ensure the key benefits of the investment were clearly articulated.
Once they were happy with the material we then rehearsed and coached the founders on how to hold a more effective sales meeting. This included developing their presentation skills as well as helping them develop their answers to the likely objections they might face. We attended numerous presentations they gave to tier 1 banks and family offices and provided direct and appropriate feedback following each meeting.
Outcome:
Enough early-stage investors liked what they saw and heard to commit day-one investment cash and the fund was successfully launched. Over the next 3 years the investment fund grew to over €200 million in assets under management.
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