Enhanced Fund Listings

Transcription

1 Enhanced Fund Listings Opportunities for Fund Marketers Compare. Connect. Invest. Investor Network

2 Preqin Investor Network: Compare. Connect. Invest. As the alternative assets industry has grown and developed into a mainstream investment destination, we have experienced a signifi cant demand for high quality data and intelligence amongst institutional investors seeking to manage portfolios and deploy new capital effectively. As part of our commitment to improving transparency in alternatives, we developed the Preqin Investor Network platform with the needs and requirements of our investor clients fi rmly in mind. What does the Preqin Investor Network do? The Preqin Investor Network is a powerful online platform designed to help institutional investors maximize their resources and make betterinformed investment decisions. The Investor Network features listings of all alternative assets vehicles currently in fundraising mode, with powerful search tools enabling users to isolate funds that fi t their criteria before drilling down to see basic manager information such as past performance metrics and peer-groups. Private equity, private real estate, hedge funds and infrastructure are all covered. Key Facts and Figures* 4,500+ individuals at 2,800 Institutional Investors subscribe to Preqin Investor Network platform. Users control $40tn in AUM. 70% of top 100 investors in world by alternatives allocation using platform. *Valid as of September Subscriber numbers rise consistently If a manager has elected to subscribe to the complimentary Enhanced Fund Listing service, investors are also able to view Key Fund Metrics and Confi dential Fund Documentation directly over the platform, keeping track of the various opportunities they have under consideration in their Fund Pipeline. Subscribing managers are able to keep track and follow up with investors most interested in their latest offering. Other key features of the platform include access to a huge library of due diligence tools, including fund and fi rm profi les, research, industry statistics and Preqin s industry-leading Benchmarks. Exclusively for Accredited Investors The Preqin Investor Network is available only to accredited investors. All subscribers to the platform are subject to a verifi cation process involving a manual checking process from Preqin s Data Confi dentiality Team. For more information on the Preqin Investor Network, please visit: Preqin Ltd. / 1

3 Data Sharing - The Virtuous Cycle Did You Know?* Over 800 managers in private equity provide Preqin with performance information. Many more share information on investment preferences and fundraising status. In terms of Assets Under Management, our net-to-lp performance database covers over 70% of private equity funds. Preqin s Research Team completes over 10,000 calls and s each month to keep our client and industry data fresh and comprehensive. Preqin s user-base community is the biggest in the world. In addition to the 2,800+ allocators that access Preqin via the Investor Network, more than 2,700 fund managers, intermediaries and other key industry players also subscribe to Preqin s database products - a total of over 5,500. *Valid as of September Subscriber numbers and data volumes rise consistently As the demand for transparency and effi ciency has increased, attitudes towards providing and sharing data have shifted for both investors and fund managers. Investors are insisting upon clear and comprehensive data, fund managers are increasingly willing to provide it. A new sense of community and openness is fl ourishing, Preqin s database services and the Preqin Investor Network sit at the center of this emerging industry dynamic. Our Commitment to Superlative Data At Preqin, we are committed to maintaining the most accurate and comprehensive alternative assets databases in the world. We maintain signifi cant research operations across three continents, pro-actively maintaining contact with all aspects of the sell-side, buy-side and intermediary/service provider community to keep our databases fresh. In building strong links and client bases across these different areas, we have been able to provide true value and benefi t for those that share data with us. The overwhelming majority of institutional investors that share their investment plans and criteria with us do so knowing that it will lead to only the most relevant fund opportunities being sent their way. Fund managers share data on performance and fundraising knowing that the vast majority of investors are using Preqin to fi nd and evaluate investment opportunities. Using Data to Build Relationships - Enhanced Fund Listings Preqin s Enhanced Fund Listings service represents the next step in the evolution of this buy-side, sell-side interaction. By offering the opportunity for managers and investors to connect via the Preqin Investor Network platform, we are leveraging our superlative data and our committed community of users to provide an innovative and powerful new fundraising tool. Of course, forming relationships represents a hugely important part of an industry where investments can last for 12 years. The Fund Listings service has been designed to work in harmony with existing fundraising investor relations processes, including the use of third party marketing fi rms which are also welcomed and encouraged to benefi t from Enhanced Fund Listings. Managers adopting this new complimentary tool will be able to both generate new leads, and better focus existing resources on following up with those investors most likely to commit. More time having productive meetings, less time chasing up dead leads Preqin Ltd. /

4 Putting you in Control - Enhanced Fund Listings The record number of new funds seeking capital has led to intense competition in the fundraising market in recent years. Even for managers with an excellent track history and compelling case for investment, just getting the attention of investors with capital to commit presents a challenge. Fund managers are under pressure to reach out to as many potential investors as possible, making prioritization of time and resources a near impossible task. Which potential investors are most interested and represent the best prospects to follow up with? Similarly, investors are also under enormous pressure when it comes to fund selection. It is an investor s responsibility to consider all available opportunities when putting capital to work, but with so many new funds available, considering all the various options is simply too time-consuming a task. There is real danger of excellent opportunities slipping through the net. Improving an Inefficient System Through the introduction of the Enhanced Fund Listings functionality, Preqin s Investor Network has streamlined and improved this ineffi cient process for both sides of the table. Enhanced Fund Listings is a free service allowing fund managers* to access investors seeking to make new commitments which have shown a specifi c interest in their fund. Managers subscribing to the service see when requests are made to view detailed information on their latest vehicle, before allowing for materials to be released to the investor and subsequently following up if there is interest established. Investors and their advisors are able to use the Preqin Investor Network to view all similar funds side by side in a consistent format with comparable data. When viewing funds with an Enhanced Listing, the investor can request to see Key Fund Metrics before diving even deeper by requesting Confi dential Fund Documentation. Instead of wading through a pile of PPMs, investors are viewing deeper cuts in increasing detail for the vehicles that are of most interest, immediately streamlining the process and focusing their resources. For managers with Enhanced Listings, it is possible to generate a pipeline of interested investors with which they can follow up to secure commitments. There is no longer a danger of manager PPMs being lost in the pile, as allocators are only requesting literature from managers they are most interested in. For managers and marketers, it enables the best leads to be focused on and followed up with, allowing for time to be spent more productively. *Enhanced Fund Listings currently available to private equity, real estate and infrastructure fund managers only. Hedge fund functionality will be added in Preqin Ltd. / 3

5 Listing a Fund - The Process Explained Step 1: Register Fund managers subscribe to Enhanced Fund Listings service, enter Key Fund Metrics, and gain access to back-end interface. The Enhanced Listing appears on the Preqin Investor Network following review from Preqin s Data Confi dentiality Team. Step 2: Investor Requests Data Investors are able to view Preqin data on the fund, and after establishing a potential interest, request to see Key Fund Metrics over the platform. Step 3: Fund Manager Provides Data The fund manager is able to see which investors are requesting to view their information. They then verify their accredited status and allow them to see the data. Step 4: Investor Views Data The investor is also able to request Confi dential Fund Documentation (such as a Private Placement Memorandum). This triggers a message to be sent over the which lets the fund manager know to provide this information to the investor. Step 5: Follow Up, Secure Investment Fund Managers continue to follow up off-line with investors showing interest in order to gather commitments. Investors are able to keep track of all the funds they have been considering on their Investment Pipeline, a key component of the Preqin Investor Network. Fund managers and their third party marketers can subscribe to the Enhanced Fund Listings service by contacting their Preqin account manager. New clients can register for the service via our website, or by contacting us at any of our four global locations - New York, London, Singapore and San Francisco. Enhance Fund Listings is a free service for both Preqin subscribers and non-subscribers. Once an Enhanced Listing has been activated, managers will be able to input their Key Fund Metrics, and start to receive enquiries from potential investors seeking to view this more detailed information following a review from Preqin s Data Confi dentiality Team. Alternatively, Preqin can enter the information on a client s behalf. Key Fund Metrics are available only to view by investors which have been approved and verifi ed by the fund manager. In order to approve an investor and allow them access to Key Fund Metrics, the subscribing fund manager receives a message which identifi es the investor together with basic vital information about them. For clients with a subscription to Preqin s Investor Profi les products, it is possible to view detailed profi les showing their stated preferences, past investments, Key Fund Metrics, investment plans and much more. It is then up to the fund manager to review, confi rm and approve (or deny) the investor as an appropriate person/ institution to access Key Fund Metrics. For investors seeking to examine the investment opportunity in even more detail, it is possible to hit the Request Confi dential Fund Documentation button, which sends a request to the subscribing fund manager to see marketing materials such as a Private Placement Memorandum. Such an approach should be viewed by fund managers in exactly the same way as when the Investor approaches / is approached by the fund manager through any other means (meeting, telephone, conference, referral, etc). Once the fund manager has approved the investor, the Confi dential Fund Documentation can made available to the Investor in various ways designed to align with other fundraising efforts: The fund manager can provide the investor with a hyperlink via their Preqin Investor Network account directing them to the fund manager s virtual data room (VDR) with security of access controlled by the fund manager. The fund manager can elect send the information off-line by / hard copy / meeting / etc Preqin Ltd. /

6 Listing a Fund - Compliance Investors and fund managers using the Preqin Investor Network do not undertake any form of general advertising or solicitation and do not make a public offering of securities. Only accredited investors (as defi ned by the SEC, and the equivalent in other jurisdictions) are able to use the platform. All investors seeking access to the Preqin Investor Network undergo a multi-stage questionnaire in order to establish their accredited status. This is followed by a manual check carried out by Preqin before access is granted. The compliance rules that apply to fund managers with an Enhanced Fund Listing in respect of accredited investors approaching them via the Preqin Investor Network are exactly the same as those applying in respect of all other accredited investors. An investor connecting with a fund manager via the Preqin Investor Network is regarded by regulators as no different to them connecting via other online networks such as LinkedIn. And a fund manager allowing access to Confi dential Fund Documentation via an Enhanced Fund Listing is regarded as the same as a fund manager sending such information to an accredited investor via or providing access to an online data room. In each case the fund manager must take steps in accordance with their own compliance procedures to ensure that the investor is accredited, if and when the relationship turns into a prospective investment by the investor into a fund managed by the fund manager. The security measures on the Preqin Investor Network meet the requirements outlined by the SEC in the Lamp Technologies No-Action letter (May 29, 1998, SEC Ref. No , Lamp Technologies, Inc., File No ) and subsequent follow-up letters: (i.) The website is password protected; (ii.) Access is available only to accredited investors who must answer a questionnaire; (iii.) Accredited investors agree not to subscribe to any funds profi led on the site within 30 days of becoming a member, unless they already have a relationship with the fund manager and/or have previously started the investment process. (iv.) Fund managers agree not to permit any investors to subscribe to their fund(s) in less than 30 days if the fi rst connection between a member of their fi rm and that investor was made via the Preqin Investor Network. Preqin and the Preqin Investor Network do not provide any placement services and do not act as a broker-dealer, nor receive any transaction or successrelated payments from any member or fund manager of any fund listed on the platform Preqin Ltd. / 5

7 Costs The Preqin Enhanced Fund Listings service is a fully complimentary service available to all alternative asset managers and third party marketers actively raising funds for the entire duration of the fundraising process. There is no limit on the amount of funds that can be listed. Contact Web: info@preqin.com New York: London: +44 (0) Singapore: San Francisco: Preqin Ltd. /

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