A leading investor in the climate change related investment market commissioned Arbor Square Associates to undertake a comprehensive review of a range of proposed new fund strategies that it was considering for launch. The research was undertaken as part of the group’s creation of a five-year growth plan, which would include the launch of one or more of the strategies that were on the table at that time.
Undertaking independent research helped our client to more effectively evaluate the pros and cons of each individual fund strategy, prior to committing to a particular course of action.
By speaking to potential investors and gathering feedback on the proposed funds, as well as their internal asset allocation strategy, we were able gain a valuable new perspective on the strengths and weaknesses of each proposition. This enabled our client to make a much more informed decision on which strategy they should run with and ensured that any potential investor concerns were revealed and dealt with prior to a formal fund launch.
Our consultants conducted a comprehensive pre-screening of the global alternative investor community in order to identify likely candidates for each of the client’s proposed funds. A ‘long list’ of potential target investors (across all key geographic and investor types) was created, drawing on evidence of their current exposure and likely appetite for certain markets, sectors and manager types.
A programme of in-depth, peer-to-peer interviews was undertaken with a range of the ‘top ranked’ investors, gathering their views on each proposed fund strategy, their potential receptivity and any issues across key areas such as the structure and terms, team profile and credentials, portfolio fit and returns expectations.
The results of the study served to further clarify and inform the executive team’s planning process, providing an independent and objective perspective to feed into their decision making.
An executive summary and full supporting document was created and disseminated via working sessions with the team. The results provided a balanced evaluation of each fund strategy, benchmarked where possible against investor expectations for comparable products within each relevant segment of the alternative assets spectrum.
The results also explored the timing implications for the manager selection and evaluation process given certain features of the funds under consideration. In particular, features such as the ‘first-time fund’ status, an esoteric sector-strategy, and emerging market focus, as well as factors internal to investors themselves, such as resource, process, portfolio construction and structural constraints.
To find out more about projects like this, please contact Hazel Clapham:
+44 (0) 20 7096 50178