10 DO’S & DON’TS OF ALTERNATIVE MARKETING
By Peter Murrugarra
No. 1 DO - TRANSPARENCY
Consider as part of your marketing, transparency and trust are of utmost importance, whether you are an emerging manager or an established bellwether manager. Increasingly, fivesiars want to know what their funds are investing in. In some cases, they are even investing side by side on select deals. This still fits in line with keeping elements of the “secret sauce” secret, but fosters a path to identifying investors that may also be partners in some select, but increasingly more common scenarios.
No. 2 DO NOT - LONG VOICEMAILS
Do not leave a 10-minute voicemail going over the highlights of your strategy, performance and so on. An allocator’s time is increasingly compromised. A quick soundbite is all that is needed with your contact details.
No. 3 DO - THOUGHT LEADERSHIP
Take action on building your web presence here. Private investments are generally restricted to qualifying investors prior to sending out materials. This is a different way to get awareness of your existence out there. Find your messaging niche and have it available on your website and/available on LinkedIn. But don’t overdo it, manage your exposure effectively.
No. 4 DO NOT - ASK ABOUT E-MAILS
Once you get the opportunity to connect with an allocator, do not ask about “my email I sent last Tuesday at 8:32am which shows that you opened and read it”. Facilitate and be friendly with gentle reminder. Over 1000 new funds launch in any given year in hedge funds alone, an allocator may get anywhere from 2-400 emails a day. It may not be true in theory, but an allocator can easily move on to the next opportunity.
No. 5 DO - CRAFT YOUR STORY
Find your story that you can connect your audience with. Are you another Long/Short Equity manager who focuses on “GARP” or a “Warren Buffet” style approach to equity investing? There are over 5000 other funds that have the same message. Why are you different. How are you different?
No. 6 DO NOT - WASTE TIME
Take up significant time when having the opportunity to meet an allocator at a networking event. I have personally seen and experienced where a salesperson is pitching their fund later on at night, with the allocator simply looking to exit the conversation. Tell the story in a brief manner, tie in some personal banter, whether it is about yourself “My kids would have loved to be here in Florida with me, do you have kids?” and then end the conversation after exchanging cards.
No. 7 DO - CONSIDER ASSET SOURCE
Consider the kind of assets that are coming into your strategy/fund. Not all assets are the same, and may exit at the first sign of a drawdown. Also, consider what kind of questions you may have to answer one year, three years and five years down the road. Anything that takes away significant time from the message and strategy you are marketing , even if it’s only ten minutes, is ten minutes taken away from your story.
No. 8 DO NOT - REACH OUT ON THE WEEKEND
Reach out to an allocator during the weekend, especially if it’s their mobile, unless you are actually good friends with them. This has happened many times over the years, I have both experienced and heard of these stories. They never paint the salesperson, and by default, the fund in a good light.
No. 9 DO - PUBLIC RELATIONSHIPS
Public relations continue to be an under-utilized area by alternative asset management firms. Why not make yourself stand out as an extension of your messaging, whether it’s a new thought piece, key new hire, and so forth? Make sure you work with a PR group that is tuned into your target audience.
No. 10 DO NOT - ASSUME
Assume that your strategy is the ideal fit for every allocator. Allocators are fiduciaries to their end clients, and need to ensure that the portfolios they construct meet the goals of their underlying clients. But this can lead to a DO. Learn what they are interested in, you may have a friend in your network that fits what this investor is looking for. Benefits of such a relationship may not end in a direct allocation right away, but it could lead to an investor introduction to a group who may be looking for your strategy right now.
Peter Murrugarra
Co-Founder & President
Inti Advisors
Since 2010, Inti has crafted bespoke alternative investment solutions, empowering pension consultants, fund-of-funds, select wealth managers, and family offices. Inti has also extended their expertise to alternative asset managers, advising on best practices.
In 2023, Inti shifted focus and launched Inti Advisors to work exclusively with the wealth management space, bringing our team’s specialized expertise and services in alternative investments to directly benefit wealth managers and the clients they work with.
Inti serves the wealth management space, seeking to empower their clients with long-term investment success. Through our expertise in sourcing, selecting & conducting due diligence on individual managers, and comprehensive platform buildout, we help wealth managers make informed decisions that drive exceptional client outcomes - and a best fit for their wealth management business. This enables them to strengthen their value proposition to end clients and thrive in the competitive wealth management landscape.
