Capital Introductions
Capital introductions provide established, tenure and emerging portfolio managers, hedge funds, commodity trading advisors (CTAs) and commodity pool operators (CPOs) with a uniquely customized, highly efficient approach to connecting the right investors to the right managers as well as providing managers with the capital needed to streamline their business, increase capacity, and thus remain focused on their core competency – managing commodities investments. Our typical terms are as follows:
- We work on a non- exclusive basis.
- We are compensated for results.
- Our fee for capital introductions are 20-30% of management and incentive fees on invested capital
- Portfolio managers are required to maintain brokerage accounts with vCap affiliated companies.
- We allocate capital to qualified portfolio managers, CTAs, CPOs and hedge funds as an investor via vCap Funds or by advising our investment advisory clients to make an investment in your fund or managed account program.
In establishing a capital introduction agreement and brokerage arrangements, it is critical that our clients understand the factors that may have an impact on the success of the capital raising campaign. We want to stress that this is an important relationship – we both must do our part to be successful. We believe that it is important that the expectations of both parties be reasonable. To that end, we are willing to work with portfolio managers to devise benchmarks for measuring fund raising success relative to the investment success of the funds or managed account programs we invest in or advise our clients to invest in.
Upon submitting a request for a capital introduction, a in-depth questionnaire will need to be submitted to our investment advisors that contain the following information. After all the information below is collected and reviewed by our team, we will assess whether the portfolio manager is suited for a capital introduction:
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