Tower Fund Services today released the second video in a series designed to guide hedge fund managers through the common challenges faced by the emerging fund manager. 

The latest video provides some simple steps and insights into the capital raising process for new hedge funds.

Tower’s Co-founder, Vince Sarullo, says: “AUM is the lifeblood of the investment management business and competition for assets is fierce. To grow AUM can be the single most difficult aspect of running a hedge fund business. Most small hedge funds are operated by former portfolio managers, traders or research analysts, who know how to manage money.

A true test will be diverting enough time towards marketing activities without sacrificing any investment performance. Raising capital should be a non-stop, full-time process, which requires devoting patience, time and commitment into crafting comprehensive marketing strategies. All too often we see managers feverishly scrambling to get their initial investors in and once they start investing, the capital raising efforts come to a grinding halt.”