Emerging managers face many of the same challenges and overheads as their much larger and more established counterparts. However, this represents a disproportionate burden given their smaller – often negative – margins and limited resources. 

At the outset, most fund managers’ goal is to break even. To achieve this, firms will naturally try to keep spending on both people and infrastructure to a minimum. However, there is a balance to achieve – between keeping costs down and investing in the right areas to grow the business. Firms need to decide where spending will have the greatest impact; strategic investment in technology, for example, can lead to time savings, reputational benefits and opportunity unlock. 

Fund marketing technology is one such area of strategic investment. Most fund managers do not hire a fund marketing or investor relations professional from the outset. Rather, this task is picked up by the founding team – by individuals who may also be responsible for operations, portfolio management, or even trading. At the same time, winning new investment is an existential necessity. 

A comprehensive fund marketing solution automates a lot of fund marketing activity, whilst preserving compliance. A holistic solution would typically include a CRM, investor portal, data room and email marketing – streamlining communication with investors, and automating deal tracking and internal information sharing. Investor can “self-serve” in an investor experience that would typically be associated with a more established fund. 

Our recent white paper – “Managing the disproportionate financial and operational burdens placed on emerging hedge fund managers” – goes into more detail on the challenges emerging managers face and the key opportunities for efficiency and scale that should not be overlooked. Emerging managers should view investment in key technology solutions as more than a line on a balance sheet; it is a strategic necessity. Read the full paper now.