Capital Introductions

In the prior entry, I had introduced prime brokers and the special services they give hedge funds.  This affects the entire life cycle of setting up a fund.  One of the services is Capital Introductions.  It is how fund managers meet investors.  The Capital Introductions Team runs an event or round table where managers seeking seed money to initiate their fund meet institutions who are seeking to invest with the best and brightest managers.  The event is run very much like a conference.  The team does its best to match up the managers and investors with the proper investing strategy i.e. a risk averse investor would meet with an equity market neutral manager.  After the event, they would gather feedback from the investors regarding their level of interest for a manager and forward the information.  The two interested parties will then follow-up with each other.

There is no fee paid to Capital Introductions.  This is different than if the investment had been completed through, for example, the Alternative Investment Division.  In the latter case, there is a fee paid to the investment bank.