Hedge fund pitch book

not long ago i established a blog site show on money raising with a diatribe about why money managers actually need a pitch book. I acquired several e-mails a while later asking basically had any guidance as to what is going in a fruitful pitch guide. Do i've any advice? Silly concern!

Due to those queries, I created my Ten Commandments for Pitch Book Salvation. Follow them or perhaps eternally damned to restricted AUM.

FIRST COMMANDMENT – thou-shalt-not develop a pitch book more than 25 pages or faster than 17 pages.

If a pitch book is just too very long, you’ve probably gone too much into details that could never be important during an initial conference. The purpose of a pitch guide is to get one to an extra date, to not ever show anything you’ve got on the first meeting. If, on the other hand, your pitch guide is simply too brief, you chance making completely important information that investors be prepared to get in an initial meeting.

SECOND COMMANDMENT – Thou shalt feature your email address.

There are a lot of sinners available on this one therefore know who you really are. I’d call you to definitely let you know for sure, but We can’t discover your email address.

THIRD COMMANDMENT – If thou can state a similar thing about other resources, it cann’t belong in your first five slides.

Your first five slides are about yourself. The thing that makes you unique? The thing that makes this suitable chance plus the right team? Once you consist of expressions like “Our goal should produce exceptional risk-adjusted returns” or “The principal’s have their own money dedicated to the fund” my reaction is, “Yeah, and…?” Ubiquitous and obvious phrases don’t allow you to communicate your specific price proposition

FOURTH COMMANDMENT – Thou shalt bear in mind Miller’s Law.

Investors (and extremely anybody for instance) is only able to take in about five facts at the same time. When you get a lot more than seven round things on a slide, you operate the possibility of overwhelming people with information. Plus no-one really gets the time (or even the desire) to read through all that.

FIFTH COMMANDMENT – Thou shalt figure out how to make use of the fall master in PowerPoint so thy slides tend to be consistent.

Nitpicky, yes. But you will find investors available to you that are crazier about uniformity and attention to detail than i'm. Have actually somebody who is great with spelling and grammar check it over, too.

SIXTH COMMANDMENT – Thou shalt add sample roles if thy a lawyer permits it.

Most of the information inside pitch book is theoretical. Test investments let me see what you do used.

SEVENTH COMMANDMENT – Thou shalt have slides on position/portfolio danger administration AND functional danger management/infrastructure.

Because profile danger is one the main danger equation.

EIGHTH COMMANDMENT – Thou shalt have thy pages numbered.

If a trader skips forward and requires a concern that's answered later inside deck, you should be in a position to let them know just what page to turn to even though you talk about the solution.

NINTH COMMANDMENT – Thou shalt make certain you articulate the following: who you really are, everything do, the reason why it's an excellent opportunity, why you’re great at what you do, whom you work with (staff, outsourced solutions and standard companies), what your terms are, the method that you handle danger, and how you perform.

You are attempting to establish your worth and individuality. Making out some of these records causes it to be difficult to learn how to love your fund.

TENTH COMMANDMENT – Thou shalt use images occasionally to produce thy presentation visually interesting.

Including VAMI maps on performance, org charts, or images to depict the security selection procedure and/or the profile construction procedure enables make your presentation pop music. Additionally, many people respond more strongly to visuals than words, so a VAMI chart rather than an easy monthly return chart could be very persuasive.

Not to mention, it's understandable that you'll require explanatory notes and bios (ideally with photographs to humanize the presentation) inside your presentation. However, if you follow these easy principles, you may be one step nearer to pitch book salvation.

With over fifteen years of expertise, Meredith Jones is an internationally-recognized specialist, author, speaker and expert inside alternative investment industry. Today a consultant and book author, Meredith began the woman alternate investment profession at Van Hedge Fund Advisors Global (VAN), in which she ended up being Director of analysis. At VAN, Meredith was in charge of manager selection, due diligence, list construction and aggregate business study when it comes to $500 million investment of funds.