Free Work Proves Value

Ken shares a successful business development strategy where he offered to work for free to prove his value, which led to growing an asset management firm's portfolio significantly.

Key Points:

• Initial Situation:

  • Asset management firm had $2B under management
  • No active business development efforts
  • Running money for major institutions like Apollo
  • Using separately managed accounts with lower fees than traditional hedge funds

• The Strategy:

  • Offered to work for free for 3 months to prove value
  • Focused on business development and capital raising
  • Bet on himself with no guaranteed income

• Results:

  • Grew assets from $2B to $5B in 2 years
  • Raised two discretionary funds:
    • First fund: $35M
    • Second fund: $150M
  • Succeeded despite banks refusing to help with fundraising

• Key Success Factor:

  • Willingness to take risk with no guaranteed income
  • Proving value before asking for compensation
  • Using track record to build credibility
  • Maintaining conviction despite skepticism from traditional institutions

This approach demonstrates how offering free work as proof of concept can lead to significant business growth and career advancement opportunities.