"Performance is of secondary importance to perceived safety and a reduction of headline risk. As such, a high-quality product and strong historical returns are not enough for small managers to attract assets. They need an effective sales and marketing strategy. Managers must realize high-quality marketing is a critical element of a hedge fund's survival and success”.
Don Steinbrugge
Founder and CEO of Agecroft Partners.
HedgeweeK: 13 CONSECUTIVE years Marketing Firm of the Year
"MARKETING ALPHA": A PROVEN PROCESS
RAISING ASSETS IS HARD. "MARKETING ALPHA" IS VITAL.
STARTING A FUND IS EASY. RAISING ASSETS IS NOT.
Success raising assets requires: MARKETING Experience, Expertise, Execution and PROCESS.
MOST NEW, FIRST-TIME AND SMALL MANAGERS ARE NOT PREPARED TO RAISE ASSETS.
81% of small managers do not have a marketing process.
Source: AIMA
76.4% of hedge funds 'tap out' their entire investor network within one year.
Source: KPMG
89% of hedge funds NEVER reach $100 million AUM.
Source: The Performance of Emerging Hedge Fund Managers (SSRN)
First-time managers in VC and PE only received 5.7% of the total capital raised.
Source: Preqin
Marketing and raising assets for new, first-time and smaller alternative managers, especially those with AUM below $100 million, is hyper-competitive, complicated, complex and crowded.
There are plenty of attorneys, accountants, service professionals to help a new, first-time or smaller manager create the documents and infrastructure to launch a fund ready to receive assets but marketing and raising assets are “solo" efforts for new, first-time and small managers.
WHY COMPLETE THE "MARKETING ALPHA" PROCESS?
A new, first-time or small manager, especially those with AUM less than $100 million AUM must be fully-informed with the FACTS of marketing to succeed raising assets.There is an enormous amount of hype, noise, myths, fiction and completely wrong information about what is required for new, first-time and smaller managers to raise assets. Consequently, even managers with pedigree and deep experience at larger firms that have significant assets under management struggle to raise assets when starting their own fund/firm. The majority rarely get AUM beyond the manager's personal capital along with small amounts from the "family and friends" circle.
"MARKETING ALPHA" DELIVERS THE "MANGER-SPECIFIC" FACTS ABOUT RAISING ASSETS
The requirements, skills, complexities and costs of raising assets in a hyper-competitive and crowded climate involves numerous qualitative and quantitative factors that go well-beyond simple performance as the sole allocation driver. Private wealth and institutional investors have idiosyncratic demands and employ deeply invasive due diligence. As such, the ability and difficulty raising assets is often grossly misunderstood and under-estimated by most new, first-time and smaller managers.
"MARKETING ALPHA" prepares and positions a new, first-time or small manager to succeed raising assets by covering every strategic, tactical, operational, financial and regulatory detail about the marketing process for sub-institutional managers, especially those with AUM less than $100 million.
Critical deliverables of the process are the "manager-specific" marketing answers, strategies, tactics, tools, guidance and instruction that equips the manager to consistently execute the marketing process at the high level required in a hyper-competitive and crowded fundraising climate filled with risk averse, stringently selective and idiosyncratically demanding LPs.
FOR NEW , FIRST-TIME and SMALL MANAGER THE PROCESS:
- “Professionalizes” the "marketing process" with structure, discipline and focus.
- Positions a manager for "step-by-step/day-by-day" high-level marketing process execution.
- Enhances manager visibility, awareness and relationships within their geographic and relational footprint.
- Constructs and maintains the correct LP pipeline the given the manager's profile.
- Provides the skills training to engage with the LP pipeline in an "investor-centric and prospect-specific" to achieve TRUST and "ACTIONABLE CONVICTION", the two most critical factors to succeed raising assets within private wealth and institutional segments.
- "Go Institutional": Become completely informed on a manager-specific basis about the institutional landscape and requirements to be positioned for consultant engagement.
THERE IS NO GUESSWORK INVOLVED: DATA-DRIVEN EXECUTION
A core aspect of the process is use of high-integrity qualitative and quantitative independent research combined with 25+ years experience to support all marketing and fundraising advisory, instruction, training and execution. This immediately eliminates hype and noise, prevents mistakes and stops wasted time, effort and money, so the manager can raise assets faster, easier and less expensively.
Fundamental aspects of the process and engagement are candor and accountability, which eliminate false beliefs or delusions about the ability to raise assets, the length of time it takes to raise assets and the real costs involved raising assets. Candor and accountability insures the right things get consistently executed the right way, which forms the basis for high-performance and results.
THREE (3) ESSENTIAL PROCESS ELEMENTS:
- EXPERIENCE: CANDOR - Get Real.
- EXPERTISE: ACCOUNTABILITY - Get Ready.
- EXECUTION: PERFORMANCE - Get Results.
PROCESS DETAILS:
The process entails working side-by-side and one-on-one with a manager to completely insure they have the step-by-step and day-by-day consistent, high-level marketing process execution mandatory supported by 25+ years experience and expertise along with the engagement skills and relationships that position the manager to raise assets faster, easier and less expensively by helping the manager put in place my proven marketing process that has raised billions for new and small managers.
- 30-DAYS: Marketing diagnostic, advisory, instruction, support & assisted execution.
- A series of recorded/archived diagnostic, advisory, instruction & execution sessions.
- Strategic Assessment: Collateral stack (presentation and thought-leadership).
- Strategic Assessment: Presentation and engagement skill evaluation.
- Tactical Assessment: LP relationship pipeline strength, quantity and quality.
- Tactical Assessment: Quantify manager geographic & relational LP footprint.
- Operational Assessment: Enterprise execution blueprint & service providers.
- Financial Discussion: Marketing and Fundraising Budget.
- Competitive Assessment: Qualitative, quantitative and structural landscape.
TOPICS TO BE DISCUSSED IN CONSULTATION, ADVISORY & INSTRUCTION:
- D.O.M.I.N.A.T.E. the MARKETING PROCESS to raise assets
- Understanding and executing the “6-steps” in the allocation trust pathway.
- Your Target Market: Quantify the geographic and relational opportunity set (GRFOS).
- "INVESTOR-CENTRIC": Know the CLIMATE; understand the CONTEXT.
- "PROSPECT-SPECIFIC" Engagement: RIGHT Person. RIGHT Story. RIGHT Time.
- PROCESS - Articulation of enterprise-wide execution for alpha.
- STORY DEVELOPMENT : A compelling, clear, concise, cohesive, credible
- STORY DELIVERY: "Investor-centric + prospect-specific"
- DATA: The goldmine for marketing and success raising assets.
- 4-Quadrant Prospect Profiling: The key to organically build the LP relationship pipeline.
- The #1 Rule of Engagement: "Prescription Before Diagnosis is Malpractice!"
- Negative Selection: How the operational execution blueprint impacts raising assets.
- De"CAP"itated!: How to work with prime broker capital introduction teams.
- 3rd Party Marketing: Close Encounters of the Third (Party) Kind!
- Emerging Managers: The Fundraising Landscape For Women and Minority-Owned Firms.
- CON Job!: Why conferences are a scam for sub-institutional managers.
- On the Road Post COVID!: The proper use of events & external activities.
- The RFP Process: Manager selection within the institutional segment.
- Investor Lists: Poor data integrity + overly and inappropriately-prospected
- "POST & HOPE" - Manager Databases and Platforms - Do they deliver results?
- ODD-ready! How to minimize, compress and pass operational due diligence.
- The Competitive Landscape: Qualitative? Quantitative? Structural?
- Collateral and content development: One size DOESN”T fit all!
- The Monthly Comment: Does it get read? or Go in the garbage?!
- Learn the communication style to build trust and long-term relationships of conviction.
- Use emotional intelligence to effectively navigate the allocation pathway.
- Understand the dynamics of family offices to navigate complex relationships.
- From Insti'vidual' to Institutional: The marketing process and the fund adoption curve.
- Thought Leadership: The key to optimize visibility, awareness & relationships.
- The Psychology of Ultra High Net-Worth Individuals, Families & Family Offices
- Avoiding the "Field of Dreams" mentality: "If YOU build it; THEY won't come!"
- Crisis, Chaos & Conflict: Know the CLIMATE Understand the CONTEXT to "CLOSE".
- EQ > IQ: Use "Emotional Quotient" (EQ)" to build stronger relationships and raise assets.
- STOP PITCHING! START PRESENTING!: PROFILE - PREPARE – PRESENT
- Conversation Points: Creating prospect-specific conversation modules.
- Scripting - The Conversation Checklist: Building your prospect conversation script.
- The Art of Conversation: Enhancing persuasion skills: Knowledge, Discipline and Practice.
- The Lost Art of Listening: How to "connect" with a prospect to have a REAL conversation.
- High Impact Email: Good-bye "Spray & Pray"!
- Creating a differentiated and exceptional prospect engagement experience.
- Intermediation: From adversary to ally - How to engage consultants and external advisors.
- How to enhance visibility, awareness and relationships by word-of-mouth (W.O.M) with centers of influence, introduction and endorsements (CIIE)
- “Conversationally” qualify: How audio and visual acuity increases trust and conviction.
- NO FREE LUNCH: The investment required for marketing and fundraising success.
- Skills Pay The Bills!: "Engage" to build TRUST and achieve ACTIONABLE CONVICTION.
- LIGHTS! CAMERA! ASSETS?!: Does video really work raising assets?
GET REAL.GET READY.GET RESULTS.
SCHEDULE A 30-MINUTE INTRODUCTORY "MARKETING ALPHA" PROCESS BRIEFING
CONTACT:
BRYAN JOHNSON, MANAGING PARTNER
"MARKETING ALPHA PROCESS": CASE PROOF
Laurence Yang
Founder and Co-Chief Investment Officer
LHG Capital Management
Hong Kong • Zürich •Abu Dhabi • Beijing • Melbourne
AUM grew from $20+ million to $1+ Billion in 3 years
- 2017: Launch - 2 investors: $18 Million AUM.
- 2020: Implemented “MARKETING ALPHA”.
- 2021: One year later passed $100 Million AUM, in their worst-performing year.
- 2022: Within ONE year, AUM grew by 9x to just under a billion dollars.
- 2023 (January): Surpassed $1 Billion AUM.
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