How’s it going, everyone? Today, I will tell you how to find investors for your fund!
We’ve recently talked about how to win over investors, but we haven’t gone over exactly how to find them.
Here are 3 simple steps on how to do it!
#1 Find a Great Deal
Don’t think about the dollar signs, just believe that you can do it.
If you find a great deal, then it will be easy to find investors.
A lot of money to you is not a lot of money to other people. They’re just looking for a good ROI.
If you go to an investor without a great deal, they probably won’t invest with you.
#2 Be Where Investors Are
This means going to networking events, parties, clubs, or anywhere that you can find wealthy people.
No, don’t pitch them when you first meet them! When they ask about your work, say what I said in my video…
“I run a ___ fund… I have a lot of deals come across my desk. If there’s ever one that I think you’d be interested in, could I let you know? If not, no worries.”
They will say yes 9/10 times!
I know someone who bought season pass box seats for the local NBA team. They weren’t huge into basketball, but they treated the games as networking events!
Because of the investors they met, their fund went from $13 million to $130 million. This fund eventually surpassed $15 billion!
#3 Structure Your Fund to Incentivize Investors
Most funds are structured to have the first 2 or 3% of returns go to the fund managers, and the next portion of returns go to the investors.
Consider structuring your fund so that the investors make money before you do! This will get them to trust you.
For example, structure the fund so that the first 8% goes to the investors, the 9th and 10th percent goes to the fund manager (you), and the rest is an 80/20 split (80% to investors, 20% to you).
You can then pitch your investors like this…
“I won’t make any money unless you make at least 8%.”
Finding a great deal, being where investors are, and structuring your fund correctly is how you find investors for your fund.
If your fund goes well, then investors will talk to their friends; it’s compound interest!
That’s it for today!
Want to get direct guidance for your fund? Schedule a time with my Fund Advisors!
DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the author.