The market for turnkey solutions in finance is one of continuous and growing demand, especially for emerging managers looking to launch a hedge fund or raise assets, grow and scale up. High upfront costs, lengthy approval processes without certainty and arduous investor searches are just some of the obstacles many managers are faced with. Falcon Investment Management (“Falcon”), the London based FCA regulated platform, not only aims to be the answer to these needs and requirements but has also managed to quickly establish its name as the leading service provider in this space.
Under its fully regulated umbrella infrastructure, Falcon helps managers set up their own funds, overcome compliance and regulatory challenges, and distribute their product to investors. Thanks to its Hedge Fund Set-up service, managers trading traditional assets, with credible strategies, successful performance and a solid, consistent track record are able to go to market within six to seven weeks. The platform's open architecture is built on four key pillars: strategic partnership, performance, liquidity, and risk management. It identifies, selects, and partners with high-potential asset managers. Each fund on the platform reflects a carefully selected investment strategy. In a segregated fund supervised by Falcon, a mandate is given to a partner asset manager to implement their strategy in line with specific investment guidelines and risk management policies. Investors benefit from a high level of flexibility, transparency, and control, enabling them to make their own investment choices, using any combination of funds.
An experienced team, good history and outperformance does not necessarily result in allocations. Having a successful fund amongst countless others and a growing number of various investment products on the market can make finding an investor the most taxing of challenges, even for the most persistent of managers. Moreover, strict risk parameters, exclusive allocations and firm criteria are all forcing managers to seek other means of scalability. This is where Falcon’s First Loss Program can be recognised as the solution to barriers in development and progress. With Falcon, through seed capital and leverage, managers are able to trade with up to 10x more capital. The aim of providing accelerator capital is to align the interest between investors and managers, with managers expected to participate in the risk of their portfolio and therefore absorb first losses, up to 10% of the total allocation. Managers who perform well are handsomely compensated, receiving 80% in performance fees, the highest offered by any platform in the UK. Investors may also find this service appealing, considering the buy side offers zero risk, passive income and an alternative to traditional assets.
With Falcon always seeking to innovate and stay ahead of the curve, we have designed a more supportive approach to the traditional first loss model. Most first loss providers offer the managed account function, which although accommodating in the short term, has limited benefits long term. The Falcon concept is unique and offers a service by which it aims to grow with managers by investing directly in funds that choose to operate under its platform. Teams and PMs benefit from Falcon’s infrastructure, receiving the operational and risk management whilst also attaining a first loss allocation. With this modified approach, managers have the capacity to operate their fund, trade and raise assets traditionally whilst simultaneously working first loss capital alongside in a separate share class. By receiving direct investment, managers build their AUM and subsequently attract more capital. Seed capital also of course enables managers to scale and earn proportionally greater returns.
Falcon offers round-the-clock customer service to its worldwide client base and has a focused team of professionals delivering expert advice across all areas of the hedge fund industry. With speed, agility, innovation and accessibility being at the forefront of the firm’s thesis, Falcon aims to be the platform of choice for any manager seeking top quality service and support.