Building a track record for raising money

I've never been under any delusions of how difficult it would be to raise any meaningful amount of capital.

What I'm really trying to get at tho, is whether I need to be audited in real time for the results to count. (Lucias based on your comments it seems you say that this isn't necessary)

I am not interested in raising capital now nor do I believe I have sufficient track record. However, in a few to several years, I may be interested in raising money and I may have the track record by then. I want to be able to submit my monthly account statements to the auditors then, or whatever they need me to provide, and have them return to me an 'audited track record.' I don't need to pretend that I worked at a fund - those are my results for my personal funds.

I don't know much about the auditing process, so I want to make sure there's no requirements or technicalities that prevent them from auditing historical results in that manner. Maybe they'll say to me they can't audit those results since monthly account statements can be forged? Seems unlikely but I don't know. In five years time, I don't want to learn that the auditors refuse to certify my results because they need to audit my results in real time for them to count.

Thanks for the insights..
 
Quote from doublet83:

I've never been under any delusions of how difficult it would be to raise any meaningful amount of capital.

What I'm really trying to get at tho, is whether I need to be audited in real time for the results to count. (Lucias based on your comments it seems you say that this isn't necessary)

I am not interested in raising capital now nor do I believe I have sufficient track record. However, in a few to several years, I may be interested in raising money and I may have the track record by then. I want to be able to submit my monthly account statements to the auditors then, or whatever they need me to provide, and have them return to me an 'audited track record.' I don't need to pretend that I worked at a fund - those are my results for my personal funds.

I don't know much about the auditing process, so I want to make sure there's no requirements or technicalities that prevent them from auditing historical results in that manner. Maybe they'll say to me they can't audit those results since monthly account statements can be forged? Seems unlikely but I don't know. In five years time, I don't want to learn that the auditors refuse to certify my results because they need to audit my results in real time for them to count.

Thanks for the insights..
More...

You can back audit. I figured the auditors would work with your brokerage to get their own data as opposed to relying on your account statements or a spreadsheet you sent them (then again Madoff....)
 
No, it's not necessary. When I launched my fund I started with a small number of clients/AUM and didn't do an audit until I was ready to raise some serious capital. An audit does not have to be in real time. Historical records are sufficient.

Quote from doublet83:

I've never been under any delusions of how difficult it would be to raise any meaningful amount of capital.

What I'm really trying to get at tho, is whether I need to be audited in real time for the results to count. (Lucias based on your comments it seems you say that this isn't necessary)

I am not interested in raising capital now nor do I believe I have sufficient track record. However, in a few to several years, I may be interested in raising money and I may have the track record by then. I want to be able to submit my monthly account statements to the auditors then, or whatever they need me to provide, and have them return to me an 'audited track record.' I don't need to pretend that I worked at a fund - those are my results for my personal funds.

I don't know much about the auditing process, so I want to make sure there's no requirements or technicalities that prevent them from auditing historical results in that manner. Maybe they'll say to me they can't audit those results since monthly account statements can be forged? Seems unlikely but I don't know. In five years time, I don't want to learn that the auditors refuse to certify my results because they need to audit my results in real time for them to count.

Thanks for the insights..
More...
 
Yes, audits are something that can be done any time, and aren't even necessary. There are two reasons to get them.

1) You'll be making claims about returns, and some clients will want to see proof that a third party has confirmed those numbers.

2) Regardless of how well you've prepared your documents, you really want to be sure that the numbers are accurate, which is where an audit comes in handy.
 
Quote from doublet83:


I am not interested in raising capital now nor do I believe I have sufficient track record. However, in a few to several years, I may be interested in raising money and I may have the track record by then. I want to be able to submit my monthly account statements to the auditors then, or whatever they need me to provide, and have them return to me an 'audited track record.' I don't need to pretend that I worked at a fund - those are my results for my personal funds.
More...

There is no problem in doing this from a legal standpoint, it just won't satisfy larger clients. For them, it isn't a matter of pretending to work at a fund, but rather that many won't even consider investing in a pooled fund with only proprietary performance. They want to see real money performance of the actual fund entity. An audit will not change their mind.

But if you will be attracting friends and family to start, then it is a non-issue.
 
You must log in or register to reply here.
Back
Top