And I had similar conversations with my fellow allocators – what lessons had we collectively learned that suggested a new manager could break through to success and sustainability?
I decided to write down some of the familiar lessons and share the knowledge as broadly as possible across the industry. My hope is that both allocators and managers can get a leg up on understanding the patterns of success that others have experienced before them.
Q: What kind of lessons did you write about?
A: I steered clear the actual logistics of starting a fund and instead offered a few pointers across capital raising, team building, strategy creation, performance mindset, and effective allocation.
For example, most managers are very focused raising capital, naturally. So I wanted to give them some insight from an allocator’s perspective – who will allocators see, what generates interest in a fund, and how do you move that interest into real investment capital.
Interestingly, the team dynamics get less attention, but may have a bigger impact on long term success. I talk about characteristics of great teams and some common mistakes managers make when building out their organizations.
In general, I try to focus my advice on aspects of the start-up process that are common sense, but not common practice.
Q: What are your top five pieces of advice?