For Fund Managers
Streamline Your Feeder Fund: How Fund Managers Can Leverage Mara’s SPV Solutions
Mara began with a simple problem: we couldn’t access the private investments we wanted for our own portfolios. So, we built a solution – not just for ourselves, but for our friends and family too.
What started as a personal tool quickly revealed a broader opportunity. We saw how funds could benefit from unlocking capital within their own networks.
The Challenge: Managing Multiple Small Investors in Feeder Funds
Feeder funds are designed to pool capital from multiple investors into a larger master fund. While this structure can broaden your investor base, it also presents several challenges:
Managing numerous small investors, KYC, tracking individual investor contributions, and providing regular updates can be incredibly time-consuming.
Ensuring compliance with securities laws and regulations when dealing with a large number of investors can be complex and costly
Maintaining strong relationships with a diverse group of investors requires significant time and resources.
Mara’s SPV Solution: A Streamlined Feeder Fund Approach
Mara’s SPV solution offers a simple, efficient, and compliant way for fund managers to manage feeder funds. Here’s how it works:
01.
SPV Setup
Mara Invest sets up a Special Purpose Vehicle (SPV) tailored to your feeder fund needs. The SPV acts as a single entity that pools funds from multiple investors.
02.
Investor Onboarding
We handle the onboarding process for your investors, including automated KYC/AML checks and regulatory compliance. Our digital platform makes it easy for investors to join the SPV and contribute funds.
03.
Capital Aggregation
The SPV consolidates all investments into a single entity, simplifying fund management and reporting.
04.
Investment into Master Fund
The SPV then invests the aggregated capital into your master fund, signing your subscription document on behalf of all the investors.
05.
Ongoing Support
Mara provides ongoing support to investors, answering questions and providing regular updates on the fund’s performance.
Value Proposition for Fund Managers and Investors
By consolidating multiple investors into a single SPV, fund managers can significantly reduce the administrative overhead associated with managing feeder funds.
Mara ensures compliance with securities laws and regulations, minimizing the risk of legal issues.
Our streamlined platform makes it easier to attract and manage investments from friends and family or private wealth investors.
Investors can sign up to your fund through Mara in 15 minutes, signing a significantly lighter application form in comparison to fund subscription documents which can often be over 80 pages long.
By outsourcing the administrative and compliance aspects of feeder fund management, fund managers can focus on their core investment strategies and generating returns.
How to Set Up an SPV with Mara for Feeder Funds
Case Study: Helping Notion Capital Bring Key Portfolio Founders Into Their Last Fund
Notion Capital came to Mara seeking help to consolidate valuable founder relationships into their last fund. With only 2 months left until the final close of the fund, Mara was able to deliver a quick solution to onboard all the key individuals in time, receiving great feedback from all in the process.
Administrators of closed-ended private funds are not set up to efficiently deal with smaller ticket investors, thus it is not economic for these funds to allow for investors committing below $1m, so many close their doors completely.
Mara’s automated solutions take care of KYC, investor qualification, capital calls and ongoing reporting, making us a valuable solution to consolidate key individuals into one line item on the fund’s LP register, vastly saving time and cost for Notion.
Conclusion: Empowering Fund Managers to Grow Their AUM
Managing a feeder fund doesn’t have to be a headache. With Mara’s all-in-one SPV solution, fund managers can streamline the process, reduce administrative overhead, and focus on growing their assets under management (AUM). By leveraging our platform, you can unlock new opportunities for growth and investment performance.
Ready to simplify your feeder fund management? Contact Mara today to learn more about our SPV solutions and how we can help you expand your investor base. Visit our website or schedule a consultation to get started.
