Today’s fund managers are expected to be able to accommodate a range of requirements from investors wanting exposure to alternative investments, but may be reluctant to sign up to many of the orthodoxies of the limited partnership fund structure.
In order to map out the choices, vehicles and structures being adopted in today’s buoyant fundraising climate, pfm partnered with global law firm Proskauer to produce this special report on what it takes to successfully raise a fund today.
Regulations including Dodd-Frank in the US, and the Alternative Investment Fund Managers Directive in Europe, have drastically changed the rules of the road. Hazy concepts like “reverse solicitation” and what it means to be a SEC-registered advisor deserves managers’ careful consideration before distributing marketing materials and ultimately securing commitments. CCOs have always been a part of the fundraising process, but are increasingly expected to navigate GPs through these new, choppy regulatory waters.
Heightened investor due diligence is another trend. LPs are requesting CFOs’ time to discuss budget numbers, IT security and the firm’s reporting capacities. As stewards of the back-office, CFOs are expected to speak confidently about accounting software, wire transfers and other operational matters to visiting LPs.
To read the full report, The Modern Fundraiser, click here.