The Sector Inc works with organizations to design a fund strategy and implementation plan. In order to successfully raise investment capital from potential Limited Partners (LPs), the fund management team, led by a General Partner (GP), requires clarity and structure.
A well-designed fund strategy is, perhaps, not itself sufficient to attract potential LPs, but no amount of marketing skill can help a poorly designed fund secure investment capital.
An effective fund design comprises three key elements:
(1) an investment and impact thesis
(2) fund foundation and structure
(3) coherent economics
Though often initially tackled sequentially, beginning with the crafting of a compelling thesis and ending by ensuring sound fund economics, these elements are highly interdependent and require iteration. As a fund manager develops a more sophisticated understanding of potential investor interest, each element should be revisited and revised to create a coherent overall approach.