Infographic 04 · The Launch Trap

The launch trap

Wanting to change and being able to change are two different things. Four structural walls surround the manufacturing function.

GenTwo Research
Ch. 03 — Launch Trap
Why the shelf stays in place
01
Cost & risk
Tens of thousands to register, hundreds of thousands a year to run — with no certainty of traction.
37%
of 2013 fund launches still alive a decade later
$150–200M
AUM threshold to survive — 93% cite missing it to close a product
02
Legal complexity
Multi-jurisdiction counsel, offering memoranda, custodians, administrators — for firms with no in-house structuring team.
6–12 mo
to stand up a vehicle the traditional way — too slow for fast markets
03
Distribution friction
To escape the shelf you build a product — then must get it onto someone else’s shelf to reach clients.
Shrinking
shelf space — distributors curate down, favouring established brands (KPMG)
04
Internal inertia
Allocator DNA, departmental silos, and risk aversion slow approvals for anything unfamiliar.
71%
say product change is too slow industry-wide; 43% say so of their own firm
Friction in distribution causes products to languish and close — reinforcing the notion that it was “safer” to use others’ funds.