4 Steps to Investor Pipeline Development

Investor Pipeline Development

I was making my way through some marketing training materials last night from Mr. Frank Kern and came across a marketing process which may seem somewhat like common sense, but helps to think about to ensure that you are presenting a complete marketing message to your potential fund investors.  Within the marketing training program Kern suggests you follow this process while moving your prospects through different phases of engaging your firm:

1. Interest and Desire:  Provide a white paper, speech, update your perspective of the markets which catches the attention of your potential investor
2. Trust:  Develop a relationship with the potential investor, build trust by providing client quotes, industry recommendations, and comparison analytics between your fund and others.
3. Proof:  Show proof that your fund has a high degree team, detailed consistent investment processes in place, and an advantage of some type which can be tangibly displayed or confirmed.
4. Sample: Allow the investor to start with a small minimum investment, provide examples of what other investors like them have done in the past, or present case studies on three different types of typical investors that you serve so they can imagine then being in that position.

The descriptions next to each bold word above is less important than the process itself. If you can grab the attention of the investor, build a relationship with them, provide proof of your abilities and performance, and then combine that with a sample you will be several steps ahead of much of your competition. 

Learn more about capital raising within our Hedge Fund Marketing & Sales Guide, or at ThirdPartyMarketing.com.

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Tags: Hedge Fund Investor Sources, new Hedge fund investors, investor pipeline development, investor relationship management, developing a pipeline of investors, hedge fund, hedge funds