To succeed at raising money for a fund of funds requires a
simple set of ingredients: assets of over $1 billion; unlimited
access to all the brand name hedge fund managers; a five-year
track record; and everything tightly wrapped in a cast iron
The harsh reality is that anything less and you are going to
find it difficult to raise assets, which is precisely the
position that most fund of funds startups find themselves.
Few, if any, have sufficient critical mass to appeal to the
big institutions. Few have access to 'closed' managers. And
none have a track record.
All of this means that the job of raising assets is going to
be a difficult task. The only way around it is to establish
some clearly identifiable 'edge'. This might be the fact that
you have a following based on your previous career. It might be