How does a hedge fund manager find investors?
This is the million dollar hedge fund question. Generally a hedge fund manager will look to friends and family and then, after the manager has established an attractive track record, the manager will try to raise assets from institutional investors. A hedge fund manager must make sure that it does not engage in any activities which may be deemed to be a public advertising or solicitation in contradiction of the Regulation D rules. For more information, please see: Hedge Fund Capital – How to Raise Assets for a Hedge Fund, Regulation D Overview.