Are you an asset manager wanting to quickly and compliantly raise your first $100 million—even if you don't have a track record?
Would you like to understand how to accurately measure the risk associated with any asset or portfolio—from real estate to individual stocks to hedge funds?
Would you like to ultimately scale your investment business to institutional levels of $1 billion in assets under management and beyond?
For the next couple minutes, I’m going to show you the secrets behind the power of the world's largest financial institutions and how to use them to quickly establish absolute financial independence by becoming your own bank.
As you probably know from experience, raising money for your asset management business from friends and family can only get you so far… to raise capital at scale, you have to think and operate like a financial institution.
It all starts with realizing the only three variables that determine the quality of an investment: risk, return and liquidity.
If you can generate superior risk-adjusted investment performance, report it with the correct use of quantitative metrics, and validate it with third-party administrator corroborated valuations and annual audits, you can clearly and credibly communicate that your strategy is better than the traditional assets peddled by every financial advisor, and win the battle for distribution on merit.
The greatest opportunity to generate superior risk-adjusted performance—which means that not only does your strategy perform well during the good times, but it also performs well across market crises—exists in the arbitrage opportunities that are created by the inefficiencies of private markets like real estate and small business.
Once you’ve developed your strategy—even if you’re just starting out—that strategy can be backtested to accurately measure its risk-adjusted performance as if you’ve been actually running it for over a decade.
Then it’s time to raise capital…
You can spend hundreds of thousands of dollars hiring wholesalers and key accounts managers that work RIAs and family offices for up to two years, or pursue the much more expensive independent broker-dealer route and never raise a penny.
The reason for the high probability of failure through traditional distribution is that RIAs and IBDs don’t make decisions based upon merit. They make decisions based upon a mix of regulatory fear, personal profit motive, and ignorance. And with each passing day, these traditional distribution channels get one step closer to extinction…
If your risk-adjusted performance is strong enough, you can use innovative feeder structures like funds of funds and investment clubs organized around a shared risk-adjusted performance appetite to bypass the dysfunctional middle man and directly access the retail capital markets at-scale.
While this may sound complex, it all boils to one basic idea: plan for the worst and hope for the best—with a willingness to learn, the rest will take care of itself.
I’m Ben Summers, the founder and managing director of Adagio Group. Our firm provides a turnkey suite of advisory, securitization and distribution services to start-up and emerging asset managers to scale them to 9-figures and beyond, and I recently published the book and masterclass on this subject: The Shadow Banker’s Secrets: Investment Banking for Alternatives.
For a limited time, gain immediate access to The Shadow Banker's Secrets Masterclass at an extraordinary discount—then schedule your free strategy session with me to help you apply what you learned to your specific circumstances.
This unprecedented offer shares the proven Wall Street techniques I learned over my 15 plus years of experience as a quantitative alternative asset manager successfully navigating both the 2008 and 2020 financial crises, and developing innovative distribution infrastructure dedicated to providing deserving asset managers access to all the capital they can responsibly deploy.
This is what it looks like to become your own bank, and this is your one opportunity to do so.