Launch Your Fund for Free

Fume’s latest offering lets you start your investment fund without the typical high upfront costs associated with setting up an investment vehicle. By providing a streamlined, risk-free launch model, Fume empowers emerging fund managers to initiate fundraising and establish a fund with minimal financial commitment.

Fund Managers' Concerns

Many new and emerging fund managers face similar concerns when setting up an investment fund, especially regarding costs and investor interest. Common worries include:

• Achieving Minimum AUM: Will the fund attract enough capital to sustain operations?
• Managing Setup Costs: How to avoid significant financial losses if the fund does not reach the minimum target?
• Investor Appeal: Will the fund attract interest from major investors like Funds of Funds (FoF), Family Offices (FO), and High Net Worth Individuals (HNWI)?

Goal: A Risk-Free Start

Fume’s mission is to help fund managers avoid the typical financial risks that accompany launching a new fund. This lean and risk-free approach allows you to first assess market interest before incurring full costs. Here’s how:

• Reduced Time to Market: Fume’s platform accelerates fund setup, letting you focus on engaging investors quickly.
• Risk-Free Fundraising: Begin fundraising without the initial setup costs.
• Performance-Based Payment: You pay only once the fund reaches its commitment threshold (up to you to define, it could be as low as $500k), ensuring that costs align with success.

How Does It Work?

Launching your fund with Fume follows three straightforward steps, offering flexibility and peace of mind.

1. Draft the Terms

With an initial $1,000 deposit—fully refundable if you decide not to proceed— Fume helps you draft your fund documentation (e.g. offering memorandum). This deposit either applies toward your eventual setup fee or is refunded 100% if you choose not to continue within six months. During this stage, you can:

• Set the Fund Name: Establish a unique and identifiable name for your fund.
• Add Your Logo: Customize the fund’s branding with your logo.
• Describe Your Strategy: Outline your fund’s investment approach and objectives.
• Define Your Fees: Set up management and performance fees.
• Establish Liquidity Terms: Provide transparency around withdrawal policies and frequency.

2. Start Fundraising

Once the offering memorandum is in place, you can:

• Present the Offering Memorandum: Offer prospective investors a comprehensive overview of your fund’s structure and terms.
• Secure Initial Commitments: Start collecting soft commitments from interested investors, signaling a strong foundation for the fund.
• Begin Onboarding: Initiate the onboarding process for committed investors (KYC and AML checks), further establishing the groundwork for launching the fund.

3. Register Your Fund or Change Your Mind

At this stage, Fume provides flexibility based on the outcome of your fundraising efforts:

• 3a. Register Your Fund: If you reach the desired commitment level, Fume finalizes the legal registration, officially setting your fund into motion and enabling full operations (receiving and deploying the capital).
• 3b. Change Your Mind: However, if you decide not to proceed (for example, due to insufficient capital commitments), you can request a full refund of your deposit within six months. No questions asked.

With Fume’s risk-free offer, fund managers can now gauge interest and secure commitments before making a significant financial commitment. This solution ensures that new funds can launch efficiently and transparently, with costs aligned to fund success.

Are you ready to start your investment journey risk-free? Reach out to Fume and take the first step in setting up your fund today!

Book a meeting here.