Start-ups are looking for comprehensive service that will not break the bank, and there are few firms out there offering a comprehensive service at the right price.
Track record and trust play a big part in a new hedge fund’s success. By partnering with a reputable broker investment business, getting new clients on board can be a smoother ride. In turn, broker firms who wish to benefit from the surge of smaller start-ups will need to provide capital introduction services as well as bringing possible investors and clients together. Some investor broker firms go further than this, and provide seeder funding as an addition to their introduction services.
Introduction services alone will not persuade a hedge fund manager to acquire the services of a broker firm. These cost-conscious hedge funds are constantly looking for more ways to cut costs. Outsourcing can often offer a viable solution. Compared to establishing an in-house trading desk, the cost benefits can be quite alluring.
The new era for the hedge fund
