Far Hills Group :: capital raising process

Far Hills Group sales process is focused on efficiency with the goal of reducing the amount of time devoted to investor acquisition for its manager-clients. The sales process is anchored by value-added phone conversations as the primary tool to initiate the sales process. Follow-up e-mails with insightful, manager specific data packets are an important part of the process. These data packets are analytically customized for each manager to address key aspects of the manager’s investment process and strengths. Far Hills Group encourages its managers to travel as part of its strategic plan to raise assets. While travel is always a diverting and time consuming endeavor, it nonetheless has proven to shorten the sales process when strategically planned and executed. With respect to its hedge fund managers, Far Hills Group is committed to working with Capital Introduction Groups and believes their efforts are an important avenue of exposure, especially for less established managers. While Cap Intro provides a worthwhile starting point, Far Hills Group's mission is to advance the sales process beyond introductory meetings until a closing transaction occurs.

Since the establishment of the firm in 1990, Far Hills Group has raised nearly $30 billion and has worked with more than 70 alternative investment managers across a wide range of strategies. The firm has had success raising capital for hedge funds, venture capital funds, private equity funds, private credit funds, CTAs and co-investments.

Post 2008 Capital Raising Environment Capital Raised by Strategy Total Raised over $6 billion

Arbitrage	16%	Credit	21%
Event	3%	US Equity	48%
International Equity	2%	Global Macro	10%

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We are a New York City based firm with a global footprint. Our global institutional investor base comprises endowments, foundations, banks, insurance companies, corporate pension plans, sovereign wealth funds, family office and their consultants. Please see breakdown below of our institutional relationships.

Consultants and OCIOs	5%	Family Offices	35%
Insurance Companies	3%	Sovereign Wealth Funds	1%
Pensions	14%	Wealth Managers	18%
Endowments & Foundations	9%	Banks	6%
Fund of Funds	10%

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Far Hills Group raises significant capital from overseas. Our International coverage is geographically diverse and includes investors from Europe, Asia, the Middle East, Australia and the Americas. Please see breakdown of investor base below by region.

Americas	55%	Middle East and North Africa	12%
Asia and Australia	12%	Europe	21%

Loss of assets following 2008 market crisis: In 2009, a hedge fund had lost significant assets during the market crisis due to friendly redemption terms despite ending 2008 at their all-time high water mark. It was a liquid strategy that was not gated resulting in a sharp outflow of assets. In a period of 3 years we have increased the firm’s assets under management in excess of $1 billion broadly diversifying their client base across both on and off-shore investors spread across the institutional spectrum. Of particular focus were endowments and family offices segments that valued the long track record and risk management record of the manager.
	Investment bank spin-out: Due to the Volcker rule in the aftermath of the credit crisis, a hedge fund group spun out of a major investment bank. As part of the assignment, we repositioned the group as a stand-alone credit boutique, but at the same time emphasized the sell side strengths of the fund’s principals.
Re-branding: We were working with a global hedge fund and noted increased investor appetite for the European component of the Fund. We strategized with the manager about a brand extension that resulted in the launch of a new fund that was focused exclusively on the European markets. The fund later became the flagship product for the firm. Total assets raised were $1 billion.
	Build presence for fund within larger asset management firm: We have experience working with smaller hedge funds that are part of larger asset managers. Often, these diversified asset management firms aren’t sensitive to the nuances associated with marketing a hedge fund strategy that is embedded alongside other strategies such as traditional, long-only or private equity. In these instances, we have successfully positioned the fund as its own identity and have raised significant assets. An example is a US long/short equity manager that is part of a larger value-oriented long-only firm in which we raised $600 million.