Third Party Marketing: Growing beyond the basics

Discussion in 'Professional Trading' started by ASusilovic, Jan 4, 2008.

  1. Not affiliated with them, but seems to me an interesting way for growing HF´s and CTA´s...

    Steven Rubenstein, President of Arrow Partners Inc. writes in MFA Reporter: Why Hire a Third Party Marketer? A third party marketer (3PM) may provide the solutions for one or more of the following situations during the growth of your hedge fund management firm:

    * After managing money for a few years, your asset growth has reached a plateau;
    * You have exhausted the “friends and family” network for gathering additional assets to manage;
    * You are tired of interviewing institutional salespeople that claim to have the “entrepreneurial bug,” but ask for a high six-figure guaranteed compensation package;
    * Originally intrigued by the incubator model, you choked on the idea of giving up almost half of the firm’s equity; and
    * You are frustrated with un-returned messages from prospects, populating industry databases on weekends and completing RFP’s at night.

    But with more than 100 independent sales and marketing firms to select from, many of whom possess very impressive track records in raising capital for investment managers, how do you choose the right partner, and just as importantly, avoid the wrong one? Here are critical points to consider, and important questions to ask in decisions about a 3PM relationship.