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

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR