by Michael Rodwell
Emerging hedge fund managers have shifted toward technology-focused marketing and investor relations to gain a competitive advantage when fundraising in 2020.With two out of five investors looking to allocate to new managers in the fourth quarter, according to HFM Insights research, the optimisation of virtual processes is now seen as key to ensuring a successful launch.
According to a separate Morgan Stanley survey, 80% of investors are in the process of making investments in managers they did not previously have a relationship with. And 73% of those conducted due diligence entirely virtually.
The same Morgan Stanley research revealed that for many the virtual fundraising environment is here to stay. Nearly a quarter of all investors said virtual due diligence has worked very well and will continue to use it in a “post-Covid” world.
“I think established managers will always have an advantage given their resources… but I do think emerging managers, if willing to invest and give some thought to it, have an equal opportunity to participate in this new virtual fundraising world,” said John Manganiello, head of business development at RFA.
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