Alternative Asset Management Redefined Cool Hacks to Expand Investor Base
Channel: Pepper Alternative Asset Management Redefined
Date: 2017-09-04

Investors are a priced commodity and to get the Capital Allocation for Alternative Assets,  virtual struggle for early stage Private Equity Managers. It is difficult to establish the trust where Investor can have confidence on this alternative asset class and they would certainly not allocate their funds for investment in the alt assets with a new Alt asset managers or for that matter they don't seem to be comfortable even with mid-market alternative asset management firms, and it is evident from the fact that family offices or High net-worth individuals take a very little exposure to alt investments when compared to the other asset class where the allocation is as high as 90% and Alternative assets get to see sometimes investments as low as 10% on the investment portfolios of family offices and high net-worth individuals!
However if you see Princeton or Yale their portfolios have allocations for alternative assets at staggering up to 90%. What this points to, is a huge opportunity for alt asset managers to exploit, as they have this massive pool of capital to go after. What one needs to do to break the ice is to get the LP's convinced of your strategies. The LP's should have confidence on you that you can take good care of his investments and that you are geared up with the required tools, technologies and have systems in place to handle the business in the long term. This trust can be built by your processes in place, your data stories in your presentations for LP's where you should inculcate into the minds of your investors of the way information is organized through the choice of modern technologies adopted by you to make your reporting real time accurate and transparent. This helps you to get the edge over even the large Managers where the trust built is more to do with the amount of time that they have existed on the market then their systems and processes. 
What one needs to also keep in mind is that it is not always a disadvantage to be early stage or a mid-market player. As a matter of fact, there is another feeling in the investors who already have been investing into this asset class and are not new to alternative asset management, and that is they know that the early stage or mid-market segment alternative asset management firms are far more competitive then the big boys of the game. This is due to the management structure of such firms themselves. The teams at smaller firms are much leaner than their rival biggies and the decisions are much more faster and swifter, the response time of reaction to the situation arising during the tenure of the fund would be immediate and quick as the information and decisions do not have to peculate down through maize of various levels of executive flab for execution where it has to be implemented.
So what needs to be done is to emphasize and put into the minds of the investors that apart from the advantage of  being smaller and leaner organization you have better and the latest technology assisting you in your alt asset management which gives you the advantage of building up all your business and concerning strategies at one place and lets you and your team have one data base to work upon a single truth which is real time and connected. You need to demonstrate that you are in full control with the best of the tools and technologies and are the best bet for your investors. These hacks would set you aside from the rest of the bunch and give you the competitive edge in the market which is getting more and more complex!
Redefining alternative asset management, Pepper is the most comprehensive, flexible, Scalable Digital cloud based platform for Alternative Asset Managers. Manages Investors, Investments, Operations and much more on a single platform, with powerful and custom analytics reports on demand and access to the information instantaneously makes it the most potent tool to help make more intelligent investment decisions. With innovative cost structure Pepper breaks the Technology Cost Barrier faced by the Startup fund manager thereby increasing the confidence of the investors in the fund managers!