Making relevant introductions between hedge fund managers and investors

We view capital introduction as a serious reputational commitment by our firm and approach the effort from the investor’s perspective. We focus on the investment merits of each manager, and make every effort to understand their investment strategies, operational capabilities, and performance track record before agreeing to introduce them to allocators.

Benefit To Managers – As a number of the principals of our firm have extensive experience managing hedge funds, investing with hedge funds, managing risk and manager allocations, and analyzing portfolio returns, we believe we are well qualified to advise investment managers in developing their capital raising effort. We work to gain a clear understanding of our client’s investment strategy, goals, and objectives, which allows us to conduct a consultative approach to capital development, including providing assistance in assessing our client’s marketing materials, critiquing their investment presentations, preparing them for investor meetings, and opining on their overall marketing strategy.

Benefit To Allocators – We believe we are in somewhat of a unique position as we serve a large number of managers through our prime brokerage unit and have a great degree of transparency into their performance and risk characteristics. We also have an opportunity to review a number of emerging and established managers on a regular basis who are introduced by our prime brokerage sales team or seek us out to potentially provide specific services, be it outsourced trading, portfolio and risk reporting, or outsourced middle and back office services.

Targeted Introductions – Our team maintains a regular dialogue with the firm’s allocator contacts and works to gain insights about their experience with managers and the needs they need to fill. Armed with such information, we set out to search for managers whose strategies and return profiles match these needs from among the managers in our database, and arrange for one-on-one meetings.

Investor Meetings – Cowen Prime Services regularly hosts investor meetings at which managers have an opportunity to discuss their investment strategies and return profiles, and respond to inquiries from allocators. These events vary and may feature 2 or 3 investment managers at a time who are each allotted 30-45 minutes to address and engage with an audience of typically 40-50 qualified institutional investors, or a group of 7-8 managers in a roundtable format that accommodates over a several hour time frame a more intimate discussion on a rotating basis with a handful of investors.

Managed Account Platform – SMA structures are increasingly being deployed as a means for institutional investors to retain control of their capital and, through complete transparency, gain insight into the underlying managers and the portfolios they invest. Cowen Prime Services Managed Account Solution provides investors with a seamless, turnkey platform that facilitates the allocation of capital to portfolio managers through a fully transparent, self-directed managed account program. Our solution is designed to help investors source managers and deploy an affordable & scalable infrastructure, and to facilitate the growth of their business with streamlined operational efficiencies and effective risk mitigation capabilities. With an integrated front to back technology offering, including risk management, brokerage services, and outsourced middle/back office services, the Cowen Prime Services Managed Account Solution can mold the offering to best fit each client’s specific needs.

To request additional information about Cowen Prime Services’ capital introduction offering, please contact us at capintro@cowenprime.com.