FDN is not a hedge fund database. In my prior role as an allocator I used various hedge fund databases and found them helpful. FDN, however, differs from these databases in many valuable respects.
FDN is a Network First and foremost, FDN is a dual-sided network. The network is private and exclusive to asset mangers and accredited investors. Users of the system can connect with each other, send messages, and develop relationships. Managers can benefit from reverse inquiry on FDN. Managers can use FDN to find allocators who might be interested in investing with them. This is simply not possible with a database, which is only one-dimentional.
You Own Your Info FDN does not own or control its users’ information – the users do. This is in contrast with a database, where managers supply information, and then it is sold in a way that is blind to them. They do not control the information and generally do not know who has access to it. On FDN, managers share information only with individuals of their choosing. They can revoke access at any time, utilize security features such as watermarking to protect their information, and maintain audit trails for compliance purposes.
Deep Information FDN allows managers to share much more information than a traditional database. Most information in databases is limited to basic fact sheet level data. FDN, in contrast, supports extensive document and data sharing for core due diligence processes. FDN also supports multimedia files.
Insights With a traditional database, managers can not see who has looked at their information. FDN provides managers with the insight into who has looked at their info, so they can followup with the institutional investors who are most actively evaluating them.
Build for Workflow FDN was built by industry partitioners as a tool to do work. The platform is designed to capture the vast majority of the information traditionally shared during a normal 3 year business cycle between a hedge fund and institutional investors notify, and notifies users of important important changes.
In summary, as an asset manger on FDN, your information is owned by you. You control it. You update it. You pick and choose who can see your information. You can discover prospective investors on FDN and communicate with them through the system. Using the Insights feature, you can see when users you have permissioned are accessing your information. FDN enables you to streamline the due diligence process in advance of allocations and keep those monitoring you fund up-to-date. FDN provides tools to allocators you work with to make their research efforts more efficient across their managers. As a result, FDN acts as a critical way in which you serve both your current and prospective clients.