Raising capital to launch a hedge fund isn’t easy. No matter how experienced you and your team are, or how great an investment philosophy or strategy you have, there’s always plenty of competition when selling your idea.
Having a great pitchbook can help. Here are four good reasons why:
Helps you stand out from the crowd
When you meet with investors, chances are they’ll have already met with a number of other managers before you that day. And further, chances are they’ll be meeting with many more managers afterwards.
That’s just what investors do. The most important way you can cut through the clutter is by being confident, having a strong message, and then leaving them with a pitchbook that looks great, reads well and truly reflects what you do.
Tells people a lot more about your firm than you can in a one-hour meeting
With the number of new and novel investment strategies introduced each year, hedge funds have gotten more complex.
Chances are an hour isn’t enough time to fully explain your history, investment strategy, process, etc. to investors. And getting into the weeds is often a fast track to losing your audience. It’s best to give them a solid overview in your meeting, and then leave a great pitchbook behind so they have all the details they need afterwards.
Something to remember you by
We’ve all been there. After an afternoon of meetings before you arrive, an investor may just not be as attentive as you’d like during your pitch. And you leave feeling like your message didn’t get through to them because they’re too busy thinking about what they should do for dinner.
A professionally built pitchbook can help you tell your story through strong copy and elegant design, and is something they’ll likely remember long after they’ve eaten dinner that night.
Shows you’re totally committed to your company
The investors you meet with have likely seen hundreds of pitchbooks that were hastily written by managers who had other priorities and that were designed by a nephew in college.
A professionally written and designed pitchbook shows investors that you have put in the effort to think through your firm and its funds, and are committed to building the strongest company with the strongest brand. Those things really do matter to people who are trusting you with their – and their clients’ – capital.