What does it take to raise $1bn? Eaton Partners provides research to Jasmin Leitner at HFM Investor Relations

Posted By Jasmin Leitner On In News for HFM Investor Relations

Over a quarter (26%) of allocators initially say they are not interested in a fund the first time they are contacted, according to quarterly research by third-party marketer Eaton Partners.

The global placement agent (PA), a subsidiary of Stifel Financial Corp, found that the average sales cycle takes around 13 months and requires over 40 touch points, including emails, phone calls and meetings.

One Eaton Partners client which raised over $1.2bn had to take 535 meetings to secure the investments, with 2021 investors initially contacted and over 4000 calls made.

A “meaningful number” of investors don’t initially go forward with commencing due diligence on hedge funds, with strong organisational skills and patience required to ensure managers maintain a dialogue with investors until they are ready to move forward, Eaton Partners said.

Keeping the pitch and messaging consistent are also highlighted as key.

Eaton Partners, which has offices in the US, Asia and London, was founded in 1983 and has helped raise over $68bn from institutional investors for more than 90 hedge, private equity, real estate and real asset funds, it claims.

Choosing a PA requires significant consideration – click here to read what Johannes Asp, investor relations head at Madrague Capital Partners, flags as the most important elements.

HFM Week Graphics - Jasmine LeitnerHFM Week Statistics - Jasmine Leitner

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