Opalesque – In a presentation on how to market hedge funds to institutional investors in Australia, Steven Hall, CEO of Australian based third party marketing firm Brookvine noted that it is well worth marketing hedge funds to this investor group, as the group has proven appetite for alternatives. The presentation, given to the Australian Hedge Fund Operations Forum, saw Brookvine estimate that 27% of Australian investment institutions have allocations to direct hedge funds, 45% have allocations to fund of hedge funds and 57% have allocations to multi-strategy hedge funds.
Brookvine’s study included information on the market environment and current investor preferences, what institutional investors look for, key issues and challenges, fund raising materials and process. Hall said that investors look for: “A compelling investment opportunity; skilful, intelligent risk taking; track record – individually and as a team; strong alignment of interests; leading investors and peer group endorsement; organisational strength, capitalisation and cohesiveness; institutional grade operating infrastructure; fair terms, liquidity provisions, transparency and capacity limits and size.
