What do alternative investment allocators look for in new product launches? Pershing’s Capital Introductions team shares insights from investors and considerations for managers thinking about launching a new fund.
At BNY Mellon’s Pershing, our Capital Introductions team works with alternative investment managers on new product launches, including variations of their core trading strategy and newer private investment strategies.
Since our investor network spans across the U.S. and includes both institutional and private wealth investors, we are able to get investor insights on similar strategies available in today’s market, their views on different investment considerations, and thoughts on competitive fees and liquidity terms.
What is top of mind for investors when looking at new product launches?
With new product launches, investors often look at total risk/return potential, the strategy’s historical track record within a manager’s larger flagship fund or from prior co-investments, and the incremental benefits the new product will add to an established portfolio of managers.
What should managers think about before speaking with investors?
Before discussing new products with investors, there are three primary considerations for managers:
What should managers consider when timing their launch?
Other considerations for managers include:
What solution set does Pershing provide to alternative investment managers?
Our Prime Services team at Pershing provides alternative investment managers with a solution set that includes capital introductions, securities lending, and financing. By offering leverage, our clients can take advantage of market conditions, expand their portfolio beyond direct capital, and become more efficient with their own capital.
If you are in the process of launching a new alternative investment fund and are interested in learning more about our prime services offering, please reach out to the Prime Services team at Pershing.
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David Shalom is a Vice President for the Prime Services division of BNY Mellon | Pershing. David leads our capital introduction team in the northeast and midwest United States, assisting clients in their capital raising efforts through targeted introductions to institutional allocators and private wealth investors.