The world of alternative investments has witnessed an evolution in recent years due to changing technology, and this has impacted both the role and the daily operations of third-party marketers (TPMs). Our recent whitepaper – “Technology for third-party marketers; supporting and imposing change” delves into the shifting landscape of TPMs, and the role technology is playing in driving and supporting these changes.
A role redefined: from intermediary to strategic partner
TPMs emerged in the 1980s as intermediaries connecting fund managers with potential investors. As hedge fund managers sought capital, TPMs provided their expertise and expansive network to bridge the gap. Today, TPMs remain conduits for connecting these entities, but their role has evolved far beyond introductions. TPMs have broadened their services to encompass (among other things) brand awareness, marketing campaigns, roadshows, and online fund showcases.
Diverse investor base and tailored messaging
One of the most significant shifts is the diversification of the investor base. Regulatory changes and technological advancements have increased access to hedge funds, enabling a wider array of organisations and individuals to invest. This diversity requires targeted messaging tailored to each investor segment’s preferences and priorities. TPMs must navigate this complexity while also representing multiple funds with varying characteristics.
Embracing technological advancements
In this rapidly changing landscape, technology has emerged as both an enabler and a necessity for TPMs. As a result, digital fund marketing platforms have become the cornerstone of modern TPM operations. This platform empowers TPMs to engage with a diverse investor audience efficiently. It allows for customised messaging, seamless information access, and deep engagement analytics. Moreover, it aids compliance with stringent regulatory requirements by securely hosting and distributing content, streamlining due diligence, and safeguarding investor data.
Meeting manager expectations
As mentioned earlier, TPMs are also adapting to the evolving expectations of their fund management clients. Beyond introductions, TPMs are increasingly expected to offer comprehensive marketing services which can be harder to report on present back to the manager. The digital fund marketing platform enables TPMs to demonstrate the value they bring by tracking and reporting on activity and touchpoints with prospective investors. This enhanced transparency not only strengthens relationships but also guides marketing strategies, building on what resonates with investors and attracts the right audience.
Navigating increased competition
In an environment marked by increased competition, TPMs must leverage technology to differentiate themselves. As investment banks and fund managers themselves adopt digital strategies, TPMs need to stand out. A dedicated digital fund marketing platform provides a solution, serving as a “shop window” for showcasing a range of funds, enabling investors to independently research, compare, and select funds. It bolsters the TPM’s value proposition while mitigating the risk of unsuccessful introductions.
Technology is reshaping the TPM landscape, and TPMs must embrace digital transformation to remain competitive and relevant. In our recent paper “Technology for third-party marketers; supporting and imposing change” we delve deeper into these trends, and the technology TPMs must embrace to remain current. Read it now.