Sample Investor Pitch Book by wcx19165


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									026_ AFSR6_primer        12/1/04        3:10 pm         Page 26

    Capital introduction

                                                       Perfect pitch
         Most managers
          fail to present
                                                       M               any start-up managers
                                                                       have been previously
                                                              employed at larger
                                                                                                     book, but keep it short with a
                                                                                                     maximum length between 15-20
                                                                                                     pages. Forty pages is too long
                                                                                                                                         institutional investors.
                                                                                                                                         6. The initial pitch-book is a
                                                                                                                                         taster, so keep it short and
                                                              organisations as traders or            and prospective investors won’t     sweet and don’t give them
                  and sell                                    analysts and haven’t needed to         read it. Quality of message is      everything upfront. If they like
                                                              present themselves effectively.        critical so flush out and concen-   you they will come back for
              themselves                                      But as this industry grows, and        trate on your three key ideas.      more data. Be flexible and have
                                                              competition for assets expands,        3. The pitch: Focus on the          modules you can add to your
               effectively.                                   managers must improve how              macro before the micro. Don’t       initial pitch.
                                                              they pitch themselves to               pin all your hopes on prior         7. Create a professional look
             Holly Singer                                     increasingly astute investors          performance or the complexity       and feel. A corporate or product
                                                              and service providers.                 of your strategy. Explain who       identity can be developed easily
           suggests how                                           Many managers take                 you are as a manager and a          and cost-effectively, providing
                                                              advantage of prime broker              person, describe your               you with an important branding
                  you can                                     capital introduction services to       philosophy and how you will         opportunity that can be applied
                                                              help them raise assets, but cap        execute your strategy. Pedigree     to all your investor and client
           improve your                                       intro is just that – an initiation     is also about integrity. Terms      communication items.
                                                              to contacts and opportunities.         and conditions should be            8. Know who you want to sell to
          pitch together                                      Prime brokers are increasingly         preceded by a description of        and why. As funds and managers
                                                              leaving it to the manager to sort      your qualifications, as well as     proliferate, gaining an identity is
               with some                                      out how they best present and          biographical details on all         getting harder. Getting assets is
                                                              sell themselves. Given the             members of the management.          about quality, not quantity. You
         pitfalls you can                                     framework of heightening               4. Many pitch books lack            must pre-select your best
                                                              regulatory scrutiny, cap intro         contact information. Make it        investor matches.
                     avoid                                    groups cannot and will not             easy for investors to find you.     9. Know your prospect and
                                                              market you.                            Around 90 per cent of initial       tailor the information to the
                                                                  Here are 10 key marketing          pitch-books don’t even contain      audience – do they need to
                                                              techniques:                            the manager’s contact details!      know what a hedge fund is?
                                                              1. Take a step back and focus          Put them on every page – then       Help them move up their
                                                              on three key concepts that             if someone wants to rip out a       learning curve, but don’t bore
                                                              differentiate and represent you.       page it is already there. A name    the experts. And although high-
                                                              Try the following: if you meet         and email address is sufficient.    net-worth individuals may not
                                                              someone in a lift and they ask         5. Cut to the chase – long          be familiar with drawdowns and
                                                              what you’re doing now, be able         storylines that ebb and flow        risk analytics, they may not
                                                              to state three things that briefly     lose audiences. Make it easy        care. If you are too technical
                                                              distil what you do, who you are        by creating an upfront outline      they might decide you are not
                                                                           including your position   and stick to it. An executive       the manager for them.
                                                                           and company and why       summary should precede the          10. Do not be reluctant to hire
          Holly Singer                                                     you are focused in that   detailed information in your        experienced third-party
                                Holly Singer is president and founder      strategy or product.      pitch. This should include          marketeers due to their fees –
                                of HS Marketing Resources, Inc, a          Don’t say ‘I run a        information on the principals,      most have good investor
                                marketing communications firm              long/short fund’, tell    fund methodology, how you           contacts they can leverage to
                                specialising in helping the alternative    them you run XYZ          research, risk management           your benefit. But check their
                                investment industry communicate            fund, a distressed        and portfolio construction.         background and find someone
                                and promote their capabilities. She        equity fund,              Leave secrecy to the old            you will be comfortable with as
          has worked for over two decades as an analyst, marketeer         because…                  school because it doesn’t go        your spokesperson.
          and communicator of complex investments.                         2. You need a pitch       down well with sophisticated

     26                                AFSR January/February 2004AFSR US East 2003

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