Our thinking Quick reads Hedge and private equity funds: The pieces on the board are moving
 
Fundraising, investor relations and marketing
May 2020
2 min read

Hedge and private equity funds: The pieces on the board are moving

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It is safe to say that a lot is going on. Is it a recession, dislocation, or black swan event? Regardless, the plates are shifting, the icebergs rolling over. Major hedge funds have suffered life-ending losses. Private equity is in survival mode. Liquid capital is exuberantly waiting for the blood to rise – and it’s coming.

The big question, what are you doing about it?

Regardless of the form a crisis takes, those that sit in place and worry, rarely fair well.

Opportunity presents itself to those that act decisively. Strike a new path forward, explore new marketing initiatives, and have conversations that you normally don’t have.

Most importantly, don’t hesitate to approach potential clients that are technically out of you weight class – punch up.

Recently a Silicon Valley engineer, with no background in medical supplies, procured a $69.1 million federal contract to deliver 1,450 ventilators. Placing aside the ethical and legal ramifications of the engineer’s actions (not a single ventilator was delivered) you have to admire the audacity of the plan.

In moments of massive upheaval, organizations large and small go into shock, not unlike an individual does when experiencing significant trauma. It is within these moments that openings arise that would never exist during the normal course of business.

If you are a hedge fund with respectable operational infrastructure, and have a story to tell, it is a good time to aggressively reach out to allocators. If you are a private equity fund, good companies are in desperate need of help. A well placed call now could lead to an exceptional acquisition.

Like nature, in business, stagnancy is death. Movement and action sustain life. Get up, grab your spear and throw it at something. You just might take down an elephant.

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