Former hedge fund manager here. It's a good summary, but there's a big piece missing. Setup costs are higher now, a lot of it due to regulatory changes. One of my contacts (and former customers) told me with recent European changes coming in, you need a good few hundred million bucks AUM to make it worthwhile.
A fair few potential founders would be able to find a few tens of millions from friends and family, but a lot fewer can find a hundred bucks. If you're backed by a big name this isn't a problem, hence you still get the occasional massive launch.
The part about the fees is also pretty important. 2/20 is from tales of yore. Any significant ticket will ask for a discount as well.
A fair few potential founders would be able to find a few tens of millions from friends and family, but a lot fewer can find a hundred bucks. If you're backed by a big name this isn't a problem, hence you still get the occasional massive launch.
The part about the fees is also pretty important. 2/20 is from tales of yore. Any significant ticket will ask for a discount as well.
So it's just that much less attractive to launch.