What Top Fund Managers Use to Build Funds | Fund Launch AI

In this video, I want to help you get the most out of the Fund Builder. This is my personal favorite part of the entire platform. This is where all the magic happens. This is the core, the guts of your fund. Now, my name is Bridger Pennington. I'm the co-founder of Fund Launch. I'm here with about 30 of our employees here at Fund Launch HQ. Our developers are right behind this wall right here. So things might change here. And, you know, when you see this video, because we're pushing updates almost every day right now. But let me give you a run-through of the Fund Builder. So right here, you're seeing 6 different categories of your fund with a strength score. In the middle. Now you're seeing green, yellow, reds on here. This took so much time to put together. There's roughly 200 data points that go into building your fund, and we had to compress and help you visualize these data points. So if you move around through here and you start clicking into these, it's pretty self-explanatory that you'll go and actually start working on things inside of here so you can make decisions around things like your management fee. And again, you can use a slider. Now let's take a simple one, management fee here. It's Set it 2%, but let's say I move it to 5%. Well, what's going to happen is the agent is actually going to score me poorly and give me a red bucket here. Now, as a note, you can leave it red. Like, it's, it's not the end of the world if something is red. We just want you to know that it's off market. Having a 5% management fee is somewhat off market. Let's go down to hurdle rate. Okay, hurdle rate is empty, so it's going to score red because there's nothing there. What even is hurdle rate? I don't know what that is. Well, I can hit this little button called Get Insights. Get Insights puts it into my agent bar over here on the left, or I can just simply ask the agent bar. But Get Insights is a quick, easy way to do it. It's going to pull in all the other 200 data points of your fund and in the context of what you're already building, give you an answer around what hurdle rate is, what market rate is, and what the recommendation is for your fund. So you can see I'm going to scroll up here on the left. This field is currently empty. Typical range is 7 to 10% for hedge funds. My recommendation is to keep it at 5. If you keep the 5% management fee, skip that hurdle. Oh yeah, because it's scoring that I put this here. This is I suggest 8. I can simply say yes, let's do it. My agent will then go auto-populate for me. I don't— I can see my hands are up right now and watch, it's going to go and bam, my 8 is set there. And it actually— oh, it also gave me a suggestion to reset to 2%. And if you saw it, auto did that for me, brought them back to green. Now let's say still and see how these are selected. Say I still didn't quite understand what hurdle rate was. I can say, hey, can you Explain this to me like I'm in 3rd grade. We actually had one user come on here. He's like, I'm new to funds. I've never really done much with funds. And he sat here for a couple hours and just learned all these little nuances of funds. For example, right here, what is a hurdle rate? Hey, I'll help you sell a lemonade stand, but I only get a cut of the profits after you've already made $8. Oh, okay. So it's going to give me a scenario and teach me about hurdle rate. Hurdle rate means I got to get over a hurdle before I start making money. Ah, okay. That makes a little more sense. Let me come out here. I can work on my fund size and things that are red. Now back to the core here. These are green, but I want them completely filled out. See how they're green, but they're not complete. So if I click in here, there's still a couple of things that aren't finalized, like my initial close date. Okay, so I'm going to go set that for a date around here. Again, these will score green. This helps guide your experience through the process of putting together your fund. Now, a couple nuances I'm going to mention in here. If you click into the narrative fields. So here's your market opportunity field. These are narratives around your fund. These are written text pieces that go into your scroll deck, but also more importantly, into your legal canvas, which you'll be working on in a minute over here on the left in your legal. So these are important. They need to be written the right way. So this is going to give you a default market opportunity because it doesn't know that much about you because you haven't given it the context. So if you come here, it'll give you a rubric of how this is scoring. It'll also give you a revision plan. I can simply apply the revision plan here. It takes in my, you know, what it thinks we need to do to resolve and make this better. I can also give it context of my market opportunity is stuff that it wouldn't know. Oh, we find off-market deals from a certain lead source that are very unique to us. That's important context to give the agent to help you write a narrative field. Does that make sense? So again, that helps you get the most out of your market opportunity, your competitive edge, etc. Now this is going to take a minute because it's a pretty long revision plan, but it'll do the same thing for your competitive edge, your keywords, and key risks. Okay, it says, great, I've applied all 6 steps to our plan here. It's going to go add these, but you can just keep working with it. I say, hey, uh, that's great. We also source deals from a very unique pipeline, you know, and I can give blah, blah, blah relationship or something that I want to disclose in here. And again, it'll help rewrite and redraft these over and over and over again. As I go through here, again, I'm getting my score higher and higher to make this work out. One more thing I'm going to note under team and track record. So obviously when you build a new fund, we, the agent, the software has no clue who your team is. So you got to come in here and add key members to your team. Now there's a couple of places to access this. You can go to your team and you can Add team members also at the bottom here. This is always live no matter where you're at. See if I even if I click out, see manage team members. I can click into here and add team members. So you can see Bridger Pennington. I'm managing partner. I can add my address, and then I'm going to add my roles. So these are I'm a general partner. I'm in the management company. I'm in the investment committee. I'm not on the LPAC advisory committee. Okay, I can add these things as well. You know, I'm part of the fundraising team. Now, if at any moment I don't know what any of these things mean, I can just simply go ask the agent over here on the left. And it will teach me what these things are. But I'm going to select what kind of partner, you know, I, I'm a notice contact, I'm a key person. I'm going to write an extensive bio here for me. I can upload an image that'll be on my pitch deck. Let me go up to upload my headshot, and ta-da, here I am as a member of this. I can hit save changes. I can also add other members. So these are other members here. I'm gonna add my co-founder Mason Vrains. You know, he's a co-founder. You get the idea. You'll create these members in here. Now when you create them here, as you go through here, it's going to ask for their experience levels, prior funds. Like I've ran 4 funds prior to this. So I can do 4 funds prior. As I do that, if you noticed, these things pop up. It wants to know my prior funds' net MOIC and aggregate fund size and other data points to give context. I've done this a few times. If you spend some time in here, in a couple hours you can have your whole fund built out. You can be trained up immensely on what funds are, how they're put together, and this saves you so much time. The old way of doing this Was you would call up a lawyer. You know, if you're in here and you're like, hey, what's, what's an ERISA provision? What does that mean? Well, you could call a lawyer and bill $800 an hour to learn what an ERISA provision is. And then they'll talk to their associate and get back to you and add it to your docs. What you can do here is simply just hit get insights and it will teach you what ERISA provisions are, what's standard, what's needed, and how that's put into your docs. And then that will translate directly into our next video, which will be on the legal canvas here of how this actually populates into your legal docs. And you can see on the left, it's already teaching me about ERISA provisions, what they are and how they work together. Putting this together took so much time. You can't believe how much time this took to put together. And I think this is transformative for someone putting together a fund. At any time, if you get stuck, hit this little button. Feel free to talk to an— this is more customer support. If you want to talk to someone in the fund space that runs a fund, if you're on our pro tier, you can come and use some of your credits. You can actually book a call like Jim Riggio right here. He actually actively runs a hedge fund. You can book a one-on-one call with him here. You can attach your fund you're working on and book your call right here. And this is actually a real human you can hop on for 60 minutes and talk through your fund with. All right, hopefully that's useful. We'll see you in the next video. Bye-bye.