Originally published March 9, 2023 | Updated August 2025

By: Larisa Miles, Director, Product Marketing

If you’re an alternative investment fund manager—raising capital for a hedge fund, private equity, or venture strategy—these eleven questions can help guide your approach in today’s environment.

Backstop, now part of ION Analytics, helps alternative investment fund managers streamline fundraising, improve investor engagement, and simplify compliance and reporting.

Why fundraising is more challenging than ever

Fundraising for alternative investment fund managers has always been demanding—but in today’s environment of persistent market uncertainty, cost pressures, fee compression, and expanding regulations, it can feel more like scaling a cliff than following a well-worn path.

Performance still matters—but institutional investors are weighing more than just returns. As Ben Crawford, VP and Head of Research at Backstop BarclayHedge, puts it:

“Don’t focus too singularly on your track record. Investors are also evaluating fees, liquidity terms, leverage, service partners, portfolio construction—and how well you communicate your differentiated value.”

Meanwhile, fundraising selectivity remains high across private capital markets. LPs continue to rebalance, explore secondaries, or pause new commitments based on public market exposure and long-term allocation targets.

11 Key questions to refine your fundraising approach

Despite headwinds, fundraising is not impossible. Below are three focus areas—and eleven smart questions—to help you gain momentum.

Clarify and differentiate your value proposition

Revisit your go-to-market narrative. Is it clear? Is it compelling? Is it aligned with how investors evaluate opportunities today?

1. Have you fine-tuned your value proposition to clearly stand apart
2. Do you know which investor segments derive the most value from your strategy?
3. Are you using third-party databases that offer both qualitative and quantitative insights on comparable funds?
4. How effectively are you leveraging your network to create warm introductions and build credibility?

Leverage technology for smarter capital raising

Meeting capital targets requires real-time visibility into your pipeline. Purpose-built tools can help you prioritize actions, stay organized, and improve conversion.

1. Are you using a CRM designed for fundraising and investor engagement?
2. Do you have digital tools in place to support remote or hybrid capital-raising efforts?
3. Are you fully prepared for today’s due diligence demands—including ESG and regulatory reviews?
4. Have you maximized your fund’s discoverability through listing platforms like BarclayHedge or others?

Enhance investor experience to build trust

According to Greenwich Associates, 70% of how investors perceive an asset manager comes down to performance—but the remaining 30% is about the experience you deliver. Every interaction is an opportunity to build trust and differentiate.

1. Do you offer a branded investor portal for seamless, real-time transparency?
2. Can you easily provide fund administration data and reporting in your investors’ preferred formats?
3. How are you proactively meeting evolving regulatory and ESG disclosure expectations?

Final thought: Fundraising success starts with strategy and structure

In today’s competitive fundraising landscape, credibility, clarity, and consistency often make the difference between securing a commitment and losing out. By refining your value proposition, leveraging purpose-built technology, and delivering outstanding investor experience, you’ll be better equipped to grow lasting relationships.

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Backstop provides world-class solutions for Investor Relations and Business Development teams in alternative investments. Discover how you can operate more efficiently by contacting us here.