Langschiff Partners Calls It Quits, Principal Lands At FrontPoint

Oct 27 2006 | 12:39pm ET

Nolan Olsen has shuttered his third-party marketing shop and joined Greenwich, Conn.-based FrontPoint Partners as a vice president in the firm’s client advisory team.

Olsen and his business partner, Ty Schlobohm, who ran fundraising firm Langschiff Partners, cited increasing competition in the space as the reason for closing down the shop.

In an e-mail obtained by FINalternatives, Olsen wrote, “hedge fund managers and investors alike will increasingly require a set of resources that are difficult for small firms to provide. We have determined that growing firms are best positioned with access to a range of research, due diligence, legal and risk management processes that are beyond the scope of a stand-alone consultant.”

One New York-based third-party marketer, who requested anonymity, said he wasn’t sure if the fundraising environment had gotten tougher in recent quarters, but that the cost of running a shop has increased in the past year because funds now won’t deal with third-party marketers unless they are Series 7-registered and are monitored by a broker/dealer.

“The big institutions have tried to raise the bar and make it difficult for the small guys to survive,” he said, “There is always a lot of bellyaching that it is hard to raise capital, but it is always hard.”

In fact, while small third-party marketing firms may be finding the fundraising environment tougher now than in the past, it certainly isn’t because of a lack of new money coming into the asset class.

According to Chicago-based Hedge Fund Research, investors poured a record $44.5 billion into hedge funds in the third quarter this year, making it the second consecutive quarter of record inflows since HFR began tracking inflows in 2003. In the first nine months of this year, almost $111 billion in assets have been added to the hedge fund marketplace, which is now estimated to total over $1.3 trillion.

According to the source, there are two sides to being a good capital raiser. “One is knowing who to go to in order to raise the money,” he said, “and the other is finding the product to sell.”


In Depth

Hedge Fund Veteran Peter Borish Talks Trading

Dec 17 2014 | 9:32am ET

Peter Borish says 2014 was “tricky” from a trading perspective. “The best...

Lifestyle

Cohen Donates $1.5M To GOP Governors Association

Dec 10 2014 | 7:13am ET

The Republican Governors Association raised close to $25 million from October 1...

Guest Contributor

Q&A With Daniel Gallancy: Institutional Interest In Bitcoin Is Growing Steadily

Dec 12 2014 | 7:54am ET

Daniel Gallancy is founder and CEO of SolidX, a provider of total return swaps for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.