Ensuring Quality Deal Flow in Uncertain Times

Ensuring Quality Deal Flow in Uncertain Times

Flow-1024x751 Ensuring Quality Deal Flow in Uncertain Times

BlogKMC-copy Ensuring Quality Deal Flow in Uncertain Times

Article written by Ken Carmody for Family Office Magazine. Click below for full magazine.

FOM-212x300 Ensuring Quality Deal Flow in Uncertain Times

With the current climate of increased volatility and turbulence many Family Offices are now sitting on dry powder waiting for the inevitable opportunities and lower entry valuations that a U-shaped recovery is characterised by. With volatility still relatively high, the VIX is currently twice as high as it was at the start of the year but significantly lower than mid-March peak of 83.56, how can you mitigate risk and find the right investments? How can you control and assist investments to help ensure success? More and more Family Offices are looking to clearly define their position within relevant sectors and build a reputation that attracts the best quality compatible investment opportunities. From this juncture many then choose to invest directly, provide strategic guidance, and/or take a position on the board for increased control and the provision of added support for the entity that they have invested in. With such an entangled investment strategy, entrepreneurs, nascent fund founders, project owners, start-ups etc are interviewing the investor to the same degree as they themselves are being interviewed by said investor.

Positioning and Reputation Promulgation

The inclination of the Family Office to become an alternative to venture capital has been rapidly growing due to a repositioning of the traditional Family Office investment strategy and risk appetite. They are increasingly more open and active in venture, particularly in early-stage companies through direct investments and funds,” said John China, President of SVB Capital speaking in August at the release of the Campden Wealth Research Global Family Office. The report shows that Family Offices are increasingly allocating capital to early growth projects. Their latest report states that on average, 10% of overall Family Office portfolios are allocated to venture investing, “divided between direct investments (54% of the average VC portfolio) and funds (46%)”. The majority of Family Office investment allocations are made in the Seed and Series A rounds. The report shows us that this relatively new position of patient capital is providing returns of 14% on average and shows the importance of being well-positioned and being open to change.

Another example of clear positioning is the large move by Family Offices towards impact and ESG (Environmental, Social and Governance) investments. The attraction here is to be able to make a difference while making money. According to the UBS Global Family Office Report 2020, 39% of family offices intend to allocate most of their portfolios sustainably over the next five years, targeting exclusion-based strategies. This type of strategy is set to further increase significantly in the coming years.

To source high quality, attractive deals that match your criteria you must demonstrate clear definition of your objectives and let others know exactly what you are looking for. Be quite specific, allow people to know your sector preferences, your ticket size, EBITDA range, ROI expectancy etc this will narrow your focus and help with worthwhile matchmaking.

Building and managing your reputation will help your office to compete with private equity funds, banks etc in attracting quality deal flow. For example, by being helpful towards quality entrepreneurs whether you intend investing with them or not can help Family Offices to grow quality deal flow quicker than their peers. Within investment circles and entrepreneur networks word can travel fast about an investor who is a valuable source of expertise, ideas, and referrals. You will also need to clearly communicate what motivates your Family Office, your experience, your vision, and your values. This makes it altogether an easier task for potential value-alignment.

Direct Investment and Collaboration

There has been a significant increase in direct investment approaches by Family Offices over the past decade as Family Offices increase in sophistication. In the same recent Campden Wealth Research report, the research points to 76% of Family Offices investing directly in companies. On average, family offices in the study hold eight funds and 10 direct deals. Better value, greater control, and interest alignment are big motivations for this type of investment. Direct investments tend to be focussed in areas where families’ feel they have a competitive edge according to the latest Family Office Direct Investment Report from FINTRX.

Additionally, 72% of family offices provide strategic guidance, 70% participate on boards, and 70% facilitate investment networking according to the Campden report. These value-adds are what many organisations are now seeking as standard as these practices have been shown to help drive growth and returns. The Family Office is now seen as more than just a source of capital and this can help build a stronger more fruitful investment relationship.

The tendency among many investors is to wait to receive deal opportunities rather than getting out there and sourcing for themselves. Currently, we have noticed that the level and magnitude of network building during lockdown and restricted periods has increased due to the ease and acceptance of virtual meetings. It is as good a time as ever to proactively develop strong deal flow through the formation of relationships with companies and other deal sources. “Family offices are becoming a bit more public…. they are building a web presence…this is also partly a generational issue. People are now more used to sharing information and they are seeking deal-flow,” Russ D’Argento, founder and CEO at FINTRX, speaking earlier this year.  With the volume and appetite for webinars within the investment environs increasing there should be no shortage of opportunity to place yourself on a panel or develop as a thought leader via written articles and speaking roles. The most successful investment firms and direct investors that have developed an impressive network of deal partners, have representatives speaking at webinars, arranging break out web rooms with keen leads, and contributing in as much thought leadership as possible. Spending money on visibility is not vital but personal engagement is.

Forward-thinking Family Offices use their own stories as a way of uniquely competing against investment banks and private equity by striking a chord with certain entrepreneurs. How you craft and tell your story should not be underestimated. If your Family Office is looking to bolster its allocations for direct and quality alternative investments then, the onus is on you to be clear on your positioning and build a reputation that appeals to the most suitable investment opportunities.

IF​ ​YOU​ ​WOULD​ ​LIKE​ ​TO​ ​LEARN​ ​MORE​ PLEASE​ ​DO​ ​MAKE​ ​CONTACT​ ​AT MKT@FINSCOMS.COM

Finscoms Voted Financial Services Marketing Company of the Year

Finscoms Voted Financial Services Marketing Company of the Year

Screen-Shot-2020-12-14-at-16.29.21-e1607969692917-1024x668 Finscoms Voted Financial Services Marketing Company of the Year

Finscoms is delighted to announce that it is a Corporate LiveWire Global Awards 2020 winner in the category Financial Services Marketing Company of the Year. During the awards process 90,000 businesses and corporate professionals, magazine contributors and Corporate LiveWire subscribers were invited to nominate companies and individuals based on factors such as service, innovation, experience, sustainability and other areas. Additionally, the Corporate LiveWire research team put forward a selection of firms which they felt were strongly deserving of recognition.

Corporate LiveWire noted Finscoms innovative approach to promoting and marketing the story of funds and projects ranging from ESG to infrastructure, from real estate to pharmaceuticals, from Fintech to Media and more. Finscoms manages clients across Europe, the US, and Asia whilst recently helping to launch a fund focussed on developing African communities socially and economically. Finscoms was also praised for helping to modernise the fund marketing approach by utilising the most sophisticated marketing tools that have proven successful in other industries.

Finscoms was brought to market with many goals in mind but one of our main goals was to modernise the fund sector which has always been considered quite conservative and traditional. It doesn’t need to be one or the other, we’ve seen tremendous success when the traditional is blended with the modern.” commented Edward Simpson, Co-managing partner at Finscoms. “Receiving this award and being acknowledged in this way further strengthens our belief in our strategy of regeneration and rejuvenation of the capital raising process.”

Contact Finscoms via mkt@finscoms.com with queries about capital raising for your project or fund.

+353 1202 4444

Looking for Investment? Finscoms are Listening

Looking for Investment? Finscoms are Listening

Search1080-1024x683 Looking for Investment? Finscoms are Listening

At Finscoms we receive many approaches from funds and projects looking to differentiate themselves from the rest and get attention from investors. As such we are in a position to cherry pick the best. Our screening and due diligence process leaves us to work with entities of which provide answers to market opportunities, and combine a sound business/financial model with corporate social responsibility, sustainability, scalability, and uniqueness.

These projects stand out from the rest as they also have compelling stories. We are proud to support them in translating their business strategy into stories that match our network’s vision and expectation. All projects and funds considered for advancement to our investor network are evaluated for their potential risk profile, impacts and economic quality.

The potential impact as well as the environmental and social risks of a project or fund are considered first. Projects are benchmarked by their social and environmental performance against conventional standards to ensure compliance and to test resilience. Projects and funds are also analysed quantitatively and qualitatively on technical and economic quality. Where possible we also use peer-group comparisons.

There are five stages to the Finscoms filtering process:

Step 1 – Submission

Candidates are invited to submit their details and marketing deck. If a nascent fund or project does not have a marketing deck we can help you to create one.

Step 2 – Preliminary Review

Once the marketing deck has been received into our ‘deal flow management system’ a member of our investment team will be assigned to your project for review. You will be notified if your enterprise will progress to the next stage or if it is declined. We provide brief feedback for each rejection.

Step 3 – Second Round

Bi-party NCNDA will be provided to protect both sides at this point. Further internal review by additional members of the Finscoms investment team. You will be requested to submit more detailed financial information about your fund or project at this juncture.

Step 4 – Video Interaction

We follow up with a video meeting to get a feel for your passion and enthusiasm for your enterprise. We dive in deeper to iron out any further questions from the internal review. Discuss strategy around bespoke targeting of investors rather than scatter gun approach.

Step 5 – Promote to Investors

Once our filtering stages are satisfied and once marketing materials are to our standards then, we introduce your project or fund to suitable investors in our network.

So, take the first step today and submit your details and marketing deck to mkt@finscoms.com. Don’t have marketing materials? Our marketing team are here to help.

mkt@finscoms.com  

+353 1202 4444

Latest Research from KPMG and AIMA Describes How Hedge Funds are Improving the IR Model in 2020

Latest Research from KPMG and AIMA Describes How Hedge Funds are Improving the IR Model in 2020

IR1080-1024x597 Latest Research from KPMG and AIMA Describes How Hedge Funds are Improving the IR Model in 2020

BlogKMC-copy Latest Research from KPMG and AIMA Describes How Hedge Funds are Improving the IR Model in 2020

New research from KPMG International and the Alternative Investment Management Association (AIMA) shows that hedge funds are developing operations to become more robust, dynamic, and productive as they continue through the COVID-19 pandemic challenge. The report is conducted in real-time throughout the pandemic and surveys 144 hedge fund managers globally, representing an estimated $840 billion in assets under management (AUM). One of the key findings of this reports relates to the efforts of the majority of the surveyed funds to improve their Investor Relations (IR) function.

The importance of being face-to-face with clients and prospects cannot be overemphasised. During COVID-19 restrictions face-to-face meetings are near impossible and this has led to 58 percent of hedge fund managers taking steps to improve IR digital tools. Virtual meetings have increased in frequency and the expanded communications have helped to strengthen relationships between investors and managers. It has enabled the CEO and CIO to interact more regularly with many more investors. Going “virtual” has in many ways levelled the playing field, in the past small to medium sized funds struggled to persuade investors to travel to events, conferences, and in-person meetings. Now, investors are more open and flexible to such communication. If there is no means to satisfy the need for “in-person” due diligence, most investors would undoubtedly stay with those they already know and this of course favours the larger, more established actors in the market.

Screen-Shot-2020-09-14-at-15.44.45 Latest Research from KPMG and AIMA Describes How Hedge Funds are Improving the IR Model in 2020

“Ultimately, hedge funds will find the right balance of a more decentralized environment with the necessary face to face interaction in the office.” said Joseph Fisher, Senior Partner, Asset Management, KPMG in the US.

However, the absence of in-person meetings has required many managers to reconsider and restructure the way they manage investor due diligence and reporting. Bespoke reporting and services are being utilised and one-in-five say they are working to improve the transparency and risk reporting of their underlying funds. Operational due diligence meetings are happening via extensive video conferences. The decentralized workplace has brought with it new intricacies but the IR function broadly speaking is adapting and becoming greatly enhanced as a result.

“The hedge fund industry has been innovative, agile, and resilient through the pandemic, and our survey bears this out,” said Andrew Weir, Global Head of Asset Management, KPMG International. “They are evaluating their existing operating model and adjusting their core processes, cost structures and work environments so they are positioned to grow and meet the changing needs of investors.”

The report reveals a high level of satisfaction with GP communications, greater transparency and control during this difficult COVID-19 pandemic period. Due to this overt satisfaction we expect to see more bespoke client services offered by fund managers to their investors.

The COVID-19 challenge has demonstrated that hedge fund managers operations’ and services are resilient and dynamic. If anything positive is to come from this period of great disruption it will certainly be the advancement of IR within the investment industry.

Investing in the area of investor relations has shown to not only to forge existing relationships but also help create new business through referrals. As such, first class communication with clients is now seen as competitive advantage for those looking to differentiate and become best in class across all functions. Finscoms has ample experience in the IR sphere and are best placed to help enhance any existing IR model.

Ken Carmody

Chief Operating Officer

Mkt@finscoms.com  

+353 1202 4444

For more information about us

 

Phase 1 – Tell your story to create interest

Phase 1 – Tell your story to create interest

Speaker-1024x874 Phase 1 - Tell your story to create interest

ES-Picture-298x300 Phase 1 - Tell your story to create interest

Part 1 of 2 in a series looking at the Capital Raising struggle. Look out for part 2 – Extend Your Reach

In my research through pages and pages of a search engine, it revealed little or no information on the vast numbers of projects/funds looking at funding, compared to the numbers of projects/funds that succeed. What was apparent to me was the mind boggling numbers looking at funding and the limited few that were funded. The route to the funder is not only heavily congested but one full of failure, loss of time, money and effort. This article, writes Edward Simpson, looks at the importance therefore of your narrative to create interest in you.

If we take a moment to look at this from the funder’s perspective they are inundated with funds, project’s, entrepreneur’s and so forth all armed with let’s face it poorly written prospectuses, I have seen fintech funds going to market and they don’t even have a website. Funders in the case of a number of private equity managers I know now adopt AI, one such private equity manager received approx. 3000 prospectuses in a year, AI selected 3 that matched investment strategy, the human got involved and all 3 were declined. A funder on average invests in fewer than 0.3% in a given year those seeking investment would see this as low whereas the funder might see this as perhaps too high.

How then can we ensure your project/fund is noticed? What is the alternative, how does a project/fund generate interest in its route to funding? Filling up email inboxes leads to negative branding, connecting your story with interested funder’s who are searching right now for opportunity is what Finscoms does.

We have now identified the problem – list of applicants high, funder’s time is short.

Solution – an improvement/investment into communications to tell your story will generate interest.

I believe there to be a stunning lack of communication and communications skills in the route to the funder, this may well be the number one barrier achieving funding or at the least one of the major components to a lack of funding/interest?

“The most powerful person in the world is the storyteller. The storyteller sets the vision, values and agenda of an entire generation that is to come.”  – Steve Jobs

What creates interest? Too many are overfamiliar with their project/fund, leaving the reader to ask ‘what is this about’. Easy to mention financials, the solution to the problem, is your story needs to encourage a funder to read further into your document not to give them reasons to say no.

Below is what a funder is looking for, this is based on feedback from the funder and differs from what the project/fund thinks the funder wants to see:

  • Your team – Who are you and why are you suited/your expertise to lead this project/fund? Avoid the ‘I am an entrepreneur with loads of experience but no success’
  • Product or Service – What exactly does your project/fund do exactly? Avoid a generic description and too much technical information. What specific results are/can be achieved? What is your solution to a problem?
  • Market Demand – What is the potential for your project? What are your USPs? Why would anyone care about your project/fund? Avoid ‘everyone will need this’ or ‘its the next Google’
  • Market Sector – Describe the market sector. Give examples of how your project/fund adds to its sector, is it sustainable? Does it have green credentials, show the value adds.
  • Competition – Who else is in your sector, what is the competition – give examples. What are your differentiators?
  • Financials – Include the amounts you are seeking for funding, what type of funding be it equity/debt/hybrid, what are your plans with the funding?

Effective communication means telling your audience a story funder’s understand, that captivates them and that makes them want to come back for the next chapter. Create hook’s with the above to create interest yes, but to also open up dialogue leading to a discovery call. Digital Marketing today allows for and creates inbound enquiries. Given recent lockdowns, funders are researching projects/funds, if the story is good they will make contact, you’ve now bypassed the high failure rate of projects/funds and their congested route to the funder.

Is it all about effective communications absolutely not, to tell your story in the first place you need a foundation a brand, create that all important first impression. A wise and small investment on your marketing materials, your projects/fund is well placed to tell the story, this small investment in your foundation is an asset that you own, shows a funder that you are understanding of the traditional and digital world’s with high returns on investment, telling your story is made all the easier to create.

If all this is too much, or you don’t have the time nor skills then Finscoms can help.

Whether you are just starting out or an established project/fund we can help. Why not send us your project/fund to mkt@finscoms.com we will reply with where we can help or not, improve the visuals, the telling of your story, to what audience, there is no cost to do this you have nothing to lose.

Finscoms are a full services marketing and communication’s company, we do not sell product nor do we give investment advice. With our expertise we do help you in your route to funding, we have a network of funder’s whom we could introduce you to.

Edward Simpson

Founder and Co Managing Partner

Mkt@finscoms.com  

+353 1202 4444

For more information about us

Connect with Edward on Linkedin

 

在后疫情经济中,明智的投资在哪里?

在后疫情经济中,明智的投资在哪里?

WorldGraph-1024x683 在后疫情经济中,明智的投资在哪里?

colour544x544-300x300 在后疫情经济中,明智的投资在哪里?

The covid19 crisis has turned into a major economic crisis. However, some positive evolutions have been noticed in the last weeks and we can now see light ahead at the end of the tunnel even if the tunnel is still quite long. 

COVID19危机已演变成重大经济危机。但是,在过去的几周里,我们已经注意到了一些积极的变化,即使希望仍然很遥远,我们现在也可以看到隧道尽头的光明。

在Finscoms,我们处于代表投资人和被投资人之间的地位,因此,我们始终留意双方的诉求。这为我们提供了一个独特的视角,可以与您分享我们在广泛而多样的渠道中获得的信息。我们的投资者在寻找什么?他们认为在接下来的几个月中哪些行业将呈现最佳的上升趋势?这不是深入的市场研究或投资建议,而只是过去数日我们圈子里投资情绪的总结。我们认为您将这些信息整合到自己的分析中可能是有价值的。

请回应并与我们分享您的意见!

COVID19并未阻止投资者寻找目标并寻求交易。私募股权基金和更广泛的投资界拥有大量现金,备用可投资资金可能已达到创纪录的高位。许多人正在讨论以下三个领域:

  • 通讯 / 数字化:COVID19促进了所有数字技术的使用。从家庭休闲、居家办公,到所有社交媒体,数字协作…… 以及“数字健康”,“安全和跟踪”…… 向数字时代迈进的步伐已大大加快,并且很可能仍将是疫情之后的常态。这种情况表明,在物联网和5G时代到来之前,基础设施仍存在瓶颈,现在需要更多容量。 Netflix和其他流媒体提供商降低了数据质量,以减少对网络的影响。在这一领域将需要更多的投资以增强网络容量。
  • 可再生能源:这次疫情的一个积极方面是,它非常具体地突出了我们对世界和自然的依赖。投资者对能源行业的强烈需求比此前并未减少,但是,它已经发生了变化:由于产能过剩,石油和天然气项目已经停止,一些投资者将其投资导向了可再生能源“项目”。
  • 服务业:这个行业受到了严重的打击……在接下来的几个月中,这种情况可能还会继续。短期内不会恢复,预期/时间表可能是明年。当然,一旦疫苗研发成功和社交禁令解除,这个行业可能就会急剧复苏:经过数月的禁足,人们将在休闲领域花费很多。无疑,这意味着许多公司在接下来的12到18个月内将迫切需要现金,这一时期过后则前景乐观,使得该领域成为财务投资的理想目标!

在项目方面,COVID19的影响现在比以往任何时候都更意味着要强调项目的质量。就像在任何困难时期一样,最弱者将死而最强者将生存。当然,有许多标准可以识别和考虑哪些项目能继续存在。鉴于Finscoms的定位,我们已经注意到,价值主张及其独特性的沟通交流已变得至关重要。想要有机会获得成功的项目比以往任何时候都需要通过一流的陈述来脱颖而出并传递有力的信息。鉴于我们处在非同寻常的时代,当社交禁令最终解除,现实情况是,那些在营销和传播方面投入更多资金的项目的处境,会比条件反射地减少甚至削减所有营销的企业更好。你需要在跑动中重启。

具有远见卓识和强大团队的项目已经理解,沟通是他们努力吸引受众(客户或投资者)的关键:他们仍在为企业形象投资。其他不那么成熟的项目、最薄弱的项目,则做出了另一种选择,减少了开支……甚至停止了他们的项目!

Finscoms.com是一家咨询公司,可帮助我们的客户与各种金融服务供应商建立联系。我们正在为全球投资者寻找投资目标,尤其是在欧洲。我们拥有大约100个项目(电信,太空,区块链,生物技术,基础设施,运输,物流等)的投资组合,以及大约300个房地产投资项目的机会。

Benoît Egée,联合管理合伙人

mkt@finscoms.com  

+353 1202 4444

Information about Benoît

Connect with Benoît via LinkedIn