Houlihan Lokey’s recent report entitled “En Primeur:
A Guide to First-Time Fundraising” provides many insightful facts regarding the
market for first-time funds. One
particularly notable quote, referencing the BVCA’s First-Time Fundraising Barometer, 2018:
“64% of GPs surveyed by the BVCA
recommended using a placement agent for a first-time fund, and for good reason: Preqin data shows that 43% of first-time managers using a
placement agent exceeded their fundraising targets, compared to 23% of
first-time managers who did not. Furthermore, placement agents can give
confidential early guidance on the optimal fundraising approach for the
For this reason, the report implies that
any team looking to raise a fund should, as a first step, hire a fundraising
advisor. Please read the entire story: https://houlihanlokey.lpages.co/en-primeur-guide-to-first-time-fundraising/.
While Meteor5 Capital agrees that hiring a fundraising advisor is a good idea for first-time funds, it’s not always the best first step. Before you hire a fundraising advisor, consider whether your team might benefit from the advice and capital that can make your management company stronger, which often has the effect of increasing (a) your target fund size and (b) boosting momentum – so that your fund gets raised faster. That’s where Meteor5 comes in – we provide advice and start-up capital before you hire a fundraising advisor. Please reach out to us at email@example.com.