Technology Is Facilitating the Hedge Fund Capital Raising Process

Tech tools can optimize every manager’s fundraising process

21 June 2019

Managing a Start-up or Emerging Hedge Fund in the U.S. Hedgeweek event

A recent panel discussion on fundraising and marketing at Hedgeweek’s Managing a Start-up or Emerging Hedge Fund in the U.S. held in New York City yielded some fascinating insights on what it takes to stand out from one’s competitors. Technology is changing the way that managers approach the task.

“From our perspective,” said Meghan McAlpine, director strategy & product marketing, Alternative Investments at SS&C Intralinks, “we see technology as being important and helpful, especially when fund managers are sending out sensitive information to prospective clients. Using technology to lock down those documents and for things like gauging interest can definitely help facilitate the fundraising process.”

The panel (pictured above) agreed that the hedge fund industry is “incredibly reliant on technology, that’s the way of the world now” in response to a question from the audience regarding the use of technological solutions.

“You don’t have to get the most expensive CRM but some can help you produce your monthly tear sheets, they can give you attribution analysis, they can give you top-five long-shorts, gross net exposure, geographic exposure – all the stuff that investors are trying to analyze. There are different levels of cost depending on what you want to do and how much you want to spend,” one panelist commented.

Tactics like podcasting and video can also work along with social media as managers develop a brand to help stand out in a crowded market and to develop new research ideas.

Millennials are taking in information in different ways and the panel agreed, “It can be a real differentiator.”

“If you get videos or podcasts done and done well, which isn’t easy, they can be a very useful tool in your toolbox,” said one of the panelists. “It’s amazing how many people watch videos and listen to podcasts and participate in webinars.

“If you’re a good presenter, it’s certainly something to consider,” they added. “The more people you can get in front of, the more people will listen to or watch your videos and podcasts.”

Over the long term, technology tools should improve a manager’s fundraising process.