The BVCA carried out a survey to gather the opinions of both, senior fund managers and investors on the important issues for first time funds. The results of the survey are accompanied by comments from the participants to give the best insights and advice for new managers. The survey sheds light on some elements of the market that are less well known, and questions some of the widely held assumptions about first-time funds.
The report cautions that launching a new venture is always difficult. Launching a fund, even for an established manager, is ever challenging and some of the key advice that can be taken from the report is to prepare, be patient and be persistent. One survey respondent warns, “It will be harder than you think”. This however is not enough to deter new fund managers. Many choosing to launch new funds for reasons such as wanting more control, a frustration that things could be done better and, frustration over compensation and carry share. Besides the warnings, the report also concludes that the future is bright for first-time funds. Every investor participating in the survey said the investment returns they see from first-time funds match or exceed the returns they see from established funds.
At NCM we can provide valuable support and specialist advice to first time fund managers to ensure you set up and maintain the best commercial and tax efficient structure for yourself and for your investors. By outsourcing specialist regulatory services, accounting and administration to NCM, first time fund managers can focus on the all-important fundraising, managing the fund, making investment decisions, and delivering superior returns to your investors.
To read the full report, click the link below