Hedge Fund Investor Types
Free Video: How to Target Different Hedge Fund InvestorsI have worked for years in hedge fund marketing and capital raising and in the following video I share my experience with you. I explain the types of investors that hedge funds target, why hedge funds focus on these investors, and how this changes when a hedge fund has a larger AUM. If you are reading this article via our daily email newsletter please click here to watch the embedded video on our website. (Please note that these investor types are generalizations and only serve as guidelines and do not take any action without speaking with a compliance officer or attorney who is an expert in this area.)
Here are some of the key lessons from this hedge fund marketing video:
- For emerging managers and hedge funds that are in the AUM range of $100,000 to $10 million then you are limited in the types of investors you can target.
- At this AUM, you should look to hedge fund seeders, friends and family, and small wealth management firms.
- At the AUM range of $10 million to $100 million your "sweet spot" includes wealth management firms, high-net-worth individuals, still seed capital providers and smaller family offices.
- Once you reach the $100 million+ AUM level you can more effectively market your hedge fund to family offices, institutional investors, wealth management firms, etc.
- At $1 billion all doors are open and your concerns will likely shift to performance, business management, risk management and other aspects of your hedge fund instead of assets under management.