Investment Group Business Plan

Business Plan Articles

If you are creating an investment group, it is likely that you will need a business plan at some point. The professionals at Pro Business Plans have worked with many investment groups to create plans for partnerships and fundraising. This article provides information about what is included in an investment group business plan and how it is typically structured.

investment group business plan

Investment Group Business Plan

There are many things to consider when forming a new investment group . Among the most important is to focus on what is unique about the group and why people should invest. For instance, the group may have a unique approach to asset management or some competitive edge in the deal origination process that others do not have access to. These unique features will make companies more interested in committing funds and the formation of strategic partnerships much simpler. These aspects, along with several others, combine to form your business model and direct the nature of your marketing strategy.

Business Model

The business model for an investment group is designed to provide an overview of the investment model, management team, and a detailed analysis of the operations process. There are many investment groups already in existence, all competing for the same capital. Therefore, it is necessary to provide investors with adequate information about your investment company’s business model to understand what is unique about your firm. This may include the expertise of the management team, your investment scope, and technique of deal screening .


market positioning

Market Positioning

The market positioning for an investment group is partially based around the unique strategy to achieve returns for the firm. Some investment groups focus on private equity investments, whereas others may specialize in public markets. The range may vary considerably and substantially depends upon how the company will compare relative to others in the market.


team management

Operations Structure

The operations structure of an investment group partially depends upon the asset class which the group is targeting. For instance, some may have a very lean operations structure and only require the support of a couple analysts whereas other quant hedge funds will require a large amount of highly qualified financial modeling and statistics experts.


Marketing Plan

There are many regulations around the way in which investment groups may solicit committed capital. The most effective way to market the fund is to start by focusing on developing strong historical performance. This will not only make wealth managers interested in introducing you into their portfolio, but allow you to communicate the hard numbers in a way that avoids regulatory problems later on. A substantial contribution to the success of a marketing strategy is derived from the relationships that the management team and initial investor network delivers.


trade shows

Capital Commitment

In general, the capital contribution is based around a combination of factors including relationships with wealth management advisors, industry compliant promotional efforts to accredited investors, and strategic partnerships with other firms which may provide ongoing support.


business development

Business Development

The business development is inclusive of anything related to building and maintaining relationships with strategic partners and advisors. This includes strategic sales & marketing efforts around acquiring prospective high net worth individuals that quality as accredited investors as well as targeting professional institutional funds.


Financial Projections

The financial projections section of an investment group business plan is based on a number of unique factors. Among these include the compensation of the analyst team, the fund fee structure, and the amount of capital under management. It can be challenging to determine exactly how much capital will be committed over time, so we suggest preparing a scenario analysis to provide information about the prospective profits under various conditions given the investment group performance. The most effective method of preparing the financial projections for the investment group is to base them on the historical performance of the company. If this information lacks anything, form reasonable assumptions about the assets under management and forecasted returns. Be careful to provide a spectrum here and communicate that any returns are contingent upon a number of factors outside the company’s control. Unlike a very standard company, such as a laundromat or trucking business, it is not always possible to form assumptions based on comparable companies at the startup phase. However, remaining versatile and providing a spectrum of scenarios will provide a reasonable basis to project returns and identify key risk areas both internally and for investors.


revenue projections

Revenue Projections

The revenue forecasts for an investment group are generally based around the cost charged to clients for managing their portfolio, which is typically done on a performance and fixed cost combination. This is typically performed over the course of three to five years, but is challenging to determine without a reliable notion of how the group’s portfolio will perform.


budget forecasts

Budget Forecasts

The budget estimates for an investment group are largely based around how much capital the group will need to commit in order to effectively scale and be profitable. Many investment groups need to raise a minimum capital amount of assets under management (AUM) in order to be profitable. These budgets will dictate how the company will perform over the course of the next five years.


What is Included in Our Custom Investment Group Business Plan?


  • Marketing Plan
  • SWOT Analysis
  • Competitive Analysis
  • Profitability Analysis
  • Personnel Plan
  • Organizational Chart
  • Company Valuation
  • Executive Summary
  • Company Description
  • Keys to Success
  • Three Year Objectives
  • Product or Service Description
  • Market Research
  • Fundraising Support
  • 12 Month & 3 Year Profit & Loss
  • 3 Year Balance Sheet
  • 12 Month & 3 Year Sales Forecast
  • 12 Month & 3 Year Cash Flows
  • Break-Even Analysis
  • Financial Ratio Analysis
  • Management Team

Speak With An Expert advisor about your plan at (877) 810 - 4172