Andrew Rae-Moore
Co-Head of International Prime Brokerage and Outsourced Trading, Marex
Why getting it right from day one matters
This is the first article in a series on launching an alternative investment fund by Marex’s prime service’s team. Download the full guide here.
Launching an alternative investment fund is exciting, but success is far from guaranteed. Fierce competition and higher investor expectations have made securing capital harder than ever. With operational costs climbing, making the right choices from the outset is more important than ever.
Many new managers assume that a great investment strategy is enough, but the reality is far more complex. Investors look beyond returns – they want a fund built for longevity. That means a well-defined business plan, strong governance, institutional-grade operations and a network of trusted service providers. Without these in place, even the most promising strategies can struggle to gain traction.
So, where do you begin?
Laying the foundations
Fund managers need to establish a rock-solid business rationale. That starts with defining a clear and differentiated investment strategy. The market is saturated with funds, and investors need to know what makes yours stand out. Whether it’s an innovative approach, a specific niche or a track record that proves your ability to generate alpha.
Then, there’s the matter of fund structure. Should you establish an onshore or offshore fund? Would a master-feeder structure be more tax efficient for your investor base? These decisions have far-reaching implications for your ability to attract capital and operate efficiently.
Next comes service providers – quite often put on the backburner, yet it is a crucial aspect of establishing a fund. Choosing the right prime broker, fund administrator, legal counsel and compliance partners can mean the difference between a smooth launch and one bogged down by costly delays and regulatory missteps.
And what about trading? For many emerging managers, setting up an in-house trading desk isn’t always the best option. Outsourced trading has become a practical way to access experienced traders, global coverage and seamless execution without the overhead – freeing managers to focus on performance and investors.
Beyond the launch: scaling and growth
A fund that isn’t structured for scalability will quickly hit roadblocks. Many managers underestimate operational complexity, assuming that back-office functions can be managed manually or outsourced without careful oversight. But as AUM grows, so do investor expectations.
Institutional investors will demand robust risk management, reporting and operational workflows. Without a well thought out infrastructure, funds often find themselves forced into expensive mid-stream adjustments; something that can shake investor confidence.
Get the full roadmap
Success in launching a fund isn’t just about making the right investments – it’s about building a business that investors believe in.
It requires navigating a series of interconnected decisions that determine how your fund will operate and grow. From fund structures, business strategy and investor alignment to operational design and service providers – every element is critical to laying strong foundations.
Download the New Manager Guide from the Marex Prime Services team for the full step-by-step roadmap.
The content is for information only and does not constitute advice or an invitation to invest. Marex provides services only to professional clients and eligible counterparties, not retail investors.
