Visual Guide to Hedge Funds

CHAPTER 4 Hedge Fund Capital Raising

Hedge fund marketing and capital raising is a critical component of running a hedge fund but one often ignored by new fund managers who typically have backgrounds in trading, risk management, or portfolio management. This is partially why there are so many hedge funds started that close down because they never pass that $10M, $50M, or $100M in assets under management (AUM) level that they set out to reach. Raising capital is just as important as the investing component of running a hedge fund, since the trading cannot be done without capital. While that seems overly simplified and obvious, my experience would not suggest that it is so common to have built-in capital-raising abilities within a hedge fund ...