Third Party Marketing Q & A Interview
The following is part of a Q & A session which Preqin had with a US based third party marketer, this full Q & A session could be found within the 2009 Preqin Global Hedge Fund Investor Database:
Question: What do you see as the primary role of a third party marketer and what are their man advantages:
Answer: Third party marketers provide important services before the start of a marketing campaign that are sometimes overlooked. To prepare for a fund raise, services include providing strategic advice on fund structure and terms, preparing to properly position and differentiate the fund versus its peers, in addition to enhancing the fund’s marketing materials. Once the stage is set to begin speaking with investors, the third party marketer should make educated introductions to investors that are well-suited for the fund and then assist interested investors through their due diligence process. Running an organized and efficient process to track investor activity and follow-up is alo an important component of third party marketer’s service.
The real advantage involves leveraging the strength of a third party marketers brand to get the proper attention of investors with whom they have longstanding, established relationships. Most investors, particularly institutions, do not have the resources to evaluate the hundreds of funds that float across their desk in a given month: they are forced to pass on many potentially appealing funds because they don’t have the time to thoroughly review each fund and conduct due diligence. Value is added to both the hedge fund manager and the investor when a fund is brought to the investor’s attention by a marketer that is known and trusted by the investor, who has properly packaged the fund and conducted thorough due diligence. This focused outsourcing of the marketing process allows the hedge fund manager to spend most of their time and attention where it should be: managing the portfolio on behalf of their investors.