Many asset management firms such as hedge funds and private equity firms have a person or team responsible for generating new investor leads and fundraising. Typically labelled “Investor Relations”, “Marketing” or “Business Development”, these departments employ a variety of strategies to source and reach out to new prospective investors. Commonly used strategies today include:
- Attending conferences across the country that are usually hosted by a professional conference organizer or association
- Sponsoring events and conferences to exhibit, speak on panels, share insights and garner interest from investors
- Paying third-party marketing services and agencies
- Distributing products through channels such as wire house firms and broker-dealers
- Asking for referrals from trusted sources
Fortunately, technology is enabling more opportunities for asset managers to implement new, DIY (do-it-yourself) strategies to generate investor leads. And while capital formation in the asset management industry may be slower to embrace technology solutions, the fact is that technology is so engrained in our everyday lives, especially in the lives of millennials, who represent the new generation of investors. Asset managers may want to get ahead of the curve by considering these DIY strategies to generate new investor leads and increase their firms’ visibility.
1. Having a Website That Speaks to Your Firm’s Brand
Many people today conduct online research prior to making any purchases. Since accessing information is instant thanks to the Internet, an asset manager should invest in creating a website that speak to the firm’s brand. This means having a website that provides the firm’s beliefs and philosophy, biographies of the management team, a press page that shares all the great things in which the firm has been involved, and of course, a contact page.
Having a website is the same thing as showcasing a firm, giving prospective investors the opportunity to get to know a firm and its people before taking any action.
2. Content Marketing & Social Media
In a world where it’s never been easier to connect and share information, content marketing and social media are DIY strategies asset managers can implement in-house and at relatively low costs. Content marketing simply refers to a marketing strategy that involves sharing thoughtful articles, or content. Whether it’s hosting content on a blog or contributing guest articles to financial publications, thought leadership can be a powerful tool not only to generate interest from prospective investors, but also to garner the attention of reporters and publications.
Hedge fund managers and private equity firms may ask themselves, what kind of content would we share? Some ideas include: sharing the firm’s thoughts on major current financial events and trends, providing key research, and more. In addition, blogging does not have to be on a daily basis; it can be on a monthly basis or as often as the firm would like.
When it comes to social media, a common concern seems to be regarding compliance. There is no doubt that compliance is absolutely important and asset managers should do everything in their power to follow regulations in this business. There are ways to be active on social media channels while maintaining compliance. Social media can be used as a distribution channel for the firm to share blog posts, press mentions, attendance in events and conferences, and more; there is plenty of information to share outside of performance data and fundraising details.
And what are some of the leading social media channels that asset managers might want to consider? LinkedIn would come in as #1 as it is one of the leading platforms where professionals gather, followed by Twitter, a channel that many business and investment professionals also use.
3. Online Investment Platforms
Online investment platforms such as DarcMatter allow for asset managers and investors to directly connect and interact. The premise behind online investment platforms is simple – a place where buyers (investors) and sellers (asset managers) come together to find each other more efficiently, directly, and quickly through the use of technology.
The best online investment platforms will ensure that compliance is met in every way possible, while giving asset managers a technology tool to help them get in front of prospective investors in a more transparent and efficient manner. Therefore, online investment platforms will give the firm an additional DIY avenue of generating new investor leads, all in the comfort of their office and in-house team.
Technology is transforming the financial services industry, and is gradually influencing the process of capital raising and generating investor leads. These DIY approaches to generating new investor leads will strengthen a firm’s visibility via online mediums. Because if your firm doesn’t exist on the Internet, does it exist at all?
DarcMatter (“DM”) is a global fintech platform that streamlines the capital raising process for asset managers and provides investors with transparent and direct access to funds in the asset management industry.
DM’s mission is to enhance capital flow through fintech to create transparency and efficiency by providing direct access to funds in the Asset Management industry for Accredited Investors, Advisors, and Asset Managers.