Ah, product expansion. Mell Brooks had something funny to say about it in Space Balls
But all snarking aside, fund launches are serious business for your fundsters -- for all the obvious reasons. You get to show that your firm is with it. You get to tap into new markets and opportunities. You give your smart-aleck PMs a chance to shine, and a reason to stay, yada yada.
But don't expect the markets or journalists to be all starry-eyed about your new line of products.
In two very interesting articles on the subject, Barron's
writers Sarah Max
and Brendan Conway
both raise questions about the launching of a new fund.
The big point they both make, investors shouldn't be so eager to let burgeoning new talent earn their chops with their money.
That's not to say that they are against product development. Nobody is really against product development, per se. Just remember the torrential flood of new products that are always hitting '40 Act Country. Investors might be tempted to build an Ark.
Just remember this is not a Kevin Costner movie. Just because you build it doesn't mean investors will come.
Get your ducks in a row.
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