For an emerging fund manager raising capital, having an outstanding track record is key. LPs want risk mitigation, proof of process, and pattern recognition. The catch-22 situation, however, is that you need capital to prove yourself, but it’s difficult to get capital without proving yourself. Emerging managers, however, can bring to the table other assets they might have.

What to Put on the Table When You Don’t Have a Track Record

When you are an emerging manager, you can leverage other valuable factors other than your track record. Your personal history, for example, says a lot about you—your roles at prior funds, your investment committee involvement, your past exits. You can also highlight your informal wins like angel deals, SPVs, syndicates, and operator networks. Make sure your LPs know about your personal networks of investors looking to differentiate as well. Lower management fees with lean processes and systems can be appealing for LPs, as well as a more personalized approach. Last but not least, don’t forget to use onboarding platforms that showcase your branding, thus showcasing a professionalism that can give you an edge over others.

How to Gain Investor Trust

As an emerging fund manager, you have a unique opportunity to gain investor trust through various ways. For example:

• Use deal memos to showcase your decision-making, investment framework, and post-investment thinking. If you lack closed deals, analyze deals you would have done and why.

• Craft investment theses to clarify what you invest in, why, and how you generate returns. A sharp narrative is essential in LP conviction.

• Point to references to show that others already believe in you via a strong deal pipeline or anchor LPs names (if permitted).

• Provide an easy and professional LP onboarding experience right from the start—a frictionless subscription document process will leave a lasting impression on LPs. 

• Portray operational maturity by providing a transparent process that shows your professionalism. Even if you’re a small fund, you can operate like one of the big players.

Adding Value by Using Anduin Essentials

The digital experience you provide your LPs is the building block of your relationship with them. A smooth electronic subscription document or a branded data room will show them exactly who you are as a fund manager. Anduin Essentials is the key to achieve those things. 

Anduin Essentials (AE) was tailor-made for managers who need to give their LPs the best experience possible, via an affordable platform with all the essentials for fund onboarding to be up and running in two weeks. With a trusted solution like AE, managers can focus on building their portfolio and delivering performance, not chasing paperwork. Anduin also can help with your branding and provide a level of operational maturity and professionalism that LPs can trust.