Investment Insights

Our due diligence process is designed to identify managers with a proven ability to generate returns independent of market beta. We target public equity strategies, aiming for 20% annual net returns, and alternative strategies with thresholds of 25% to 35% yearly returns.

We recognize that qualitative, human-centric factors are just as important as quantitative metrics. Our due diligence process is designed to look beyond the pitch deck and assess the very fabric of the management team. We don't just analyze their strategy, we also evaluate character, temperament, vision, and leadership abilities.

For sophisticated LPs, the pursuit of outperformance requires looking beyond the obvious. A growing body of evidence and structural market dynamics reveal that smaller, more focused funds—those typically led by emerging managers—are consistently positioned to deliver superior returns.

Ashton Global is excited to launch a service engineered to scale AUM for emerging managers: our Outsourced Investor Relations Service. We've developed a powerful, tech-driven solution to accelerate your capital-raising efforts and help you reach that crucial $25M AUM target with unprecedented efficiency.

We sat down with Tec Han, Head of Manager Development at Ashton Global, to demystify what it really takes for emerging managers to raise that first institutional dollar and avoid common mistakes.

For emerging venture capital managers, Donor-Advised Funds represent not only a source of capital but also a pathway to establish credibility and differentiation in a competitive market. Accessing DAF funding requires demonstrating financial acumen and a strong commitment to impact, qualities that resonate with modern donors.

Family offices represent some of the most sophisticated and resourceful investors. Charged with managing multigenerational wealth, they approach due diligence rigorously, often relying on internal expertise to underwrite potential investments before contacting a manager.

Alpha capture refers to a system where emerging managers submit trade ideas to established hedge funds. These ideas are often concrete, targeting inefficiencies in particular markets or asset classes. The larger hedge fund evaluates these ideas, and if a trade is executed based on the submission, both parties share in the resulting profits.

Family offices are an ideal choice for emerging managers. Their leaner due diligence processes and flexibility make them a perfect fit for managers seeking quicker engagements and smaller allocations.

Emerging managers are carving out a significant niche in the private credit space. These managers often focus on niche sectors, underserved markets, or innovative deal structures, providing opportunities to outperform established players. 

Royalty streaming involves providing upfront capital to businesses in exchange for a percentage of future revenue, typically tied to specific assets or product sales. This model is prevalent in sectors such as natural resources, entertainment, and healthcare, where revenue streams can be predictable and long-term.

For niche managers, activist campaigns are a powerful tool to unlock value in overlooked companies. Using their sector-specific expertise, niche managers can identify undervalued assets and initiate strategic changes that drive growth, enhance governance, and improve operational efficiency. 

First-loss seeding structures offer hedge fund managers and allocators a balanced approach to managing risk and aligning incentives. This structure has gained popularity, particularly for emerging managers looking to build a track record while providing allocators with downside protection.

Due diligence with a family office is thorough, often spanning anywhere from one to six months. During this time, expect to provide substantial information about your fund, investment strategy, and prior track record. 

The energy transition presents many niche investment opportunities for sophisticated fund managers and family offices. By diversifying across clean energy infrastructure, green bonds, smart grid solutions, and venture capital in cleantech startups, institutional investors can strategically position themselves to capitalize on this transformative shift.

For emerging managers, specializing in niche markets like water rights offers a good way to distinguish themselves within the alternative investment space. Here, expertise in regional variations of water law, the ability to assess the viability of water assets, and the foresight to predict market shifts are invaluable.

Strip malls can generate stable rental income streams. They host a variety of tenants—such as nail salons, barber shops, physical therapy clinics, and other service-oriented businesses—that remain in demand regardless of economic fluctuations, providing a buffer against downturns that more discretionary sectors might not withstand.

Emerging long-short hedge fund managers adept at generating alpha from both sides of the book, maintaining less than 70% long bias, and focusing on sector-specific opportunities — stand out as compelling investments for family offices.

With their specialized focus and innovative strategies, emerging managers are well-positioned to capitalize on opportunities in Japan. Their ability to identify undervalued assets and drive shareholder value through active engagement makes them attractive options for family offices looking for exposure to Japan.

The due diligence process allows emerging hedge fund managers to demonstrate their fund's viability, strategy soundness, operational excellence, and compliance adherence. Due diligence encompasses a broad spectrum of evaluations - from quantitative performance analysis to qualitative fund management and investment philosophy assessments.

Over the past two decades, the cat bond market has experienced significant expansion. What began as a niche product has grown into a market worth tens of billions of dollars, reflecting both increasing interest from investors and a growing need among insurers to distribute the risk of large-scale disasters.