Hedge Fund Marketing Essentials: Insights, Strategies and a CRM

Transcription

1 Hedge Fund Marketing Essentials: Insights, Strategies and a CRM Thursday, November 5, 2015

2 Today s Experts Jaime Bean Managing Director Ledgex Systems Lauren Colonna Principal & Creative Director Ovis Creative

3 Today s Agenda Current Hedge Fund Marketing Landscape Marketing Toolkit Essentials Role of a CRM Platform

4 The Current Hedge Fund Marketing Landscape and Marketing Toolkit Essentials

5 Current Hedge Fund Marketing Landscape I am here to lay out some basic rules. Rule #1: All rules can be broken.

6 The Landscape There is fierce competition for capital... investors are inundated by proposals, are selective with investments and have high return objectives. They are generally looking for managers with strong pedigrees and strategies that can be scaled. We look at between deals a year... we will ultimately invest in only 1 to 2. Hedge Fund Seeder

7 What are Institutional Investors Looking for? Reputable Background Clearly Defined Strategy/Process Strong Risk Management Treating Investors Like Partners Leading Service Providers Institutional Infrastructure Transparency Robust Compliance Program Mitigated Conflicts Flexible Fund Terms

8 Preferred Strategies Equity managers are still reporting to have had the easiest path toward raising capital according to recent survey But in 2015, event driven/special situations funds now lead the pack with largest launches and greatest investor interest Long/short global, long/short US equities, and activist demonstrate the next greatest levels of inquiry Fixed income and market neutral strategies have continued to trail Factors Influencing an Allocation: The 3 P s of pedigree, process and performance remain key drivers for investors based on a survey of 108 allocators (concentrated in the U.S. and Europe) who represent over $150 billion in direct hedge fund assets.

9 The Word On 40 Act Mutual Funds 40 Act Mutual Funds and UCITS products......despite the negative press, are gaining popularity in the institutional marketplace...are statically widely embraced by affluent individual investors...and continue to grow because of the liberal liquidity terms, relatively lower fee structures and lower minimum investments Hedge fund managers who employ long only or long bias strategies, and are seeking to raise additional assets, should familiarize themselves with the mechanics and requirements of these alternative products.

10 The Basics: What Is a Brand? A logo is not your brand......nor is it your identity. Logo, identity, marketing communication and branding each have a distinct role, that together, form a perceived image for an investment firm Many people believe a brand consists of a few elements colors, fonts, logo, slogan In reality, a brand is an experience an investor has with your firm and an identity is what we define as a corporate image What is a brand? The perceived emotional experience with a company as a whole. What is an identity? The visual aspects that form part of the overall brand. What is a logo? Identifies a business in its simplest form via use of a mark, icon or stylized type.

11 The Basics: What Is an Identity? The identity or corporate image of a company is made up of several visual devices: Logo: the symbol that identifies a business in its simplest form Stationery: letterhead + business card + envelopes Marketing Collateral/Communication: pitchbook, tear sheets, transparency report, DDQ Website + IR Engine/Data Room Signage: interior + exterior wayfinding Messages/Actions: messaging via indirect direct modes of communication

12 The Basics: What Is Marketing? Marketing communication and branding are not about trying to get investors to choose your offering over the competition... Marketing is the act of managing a perception or an expectation so as to condition the target audience to see your fund/product or offering as the only answer to a specific need. An investors experience is what will ultimately influence an allocation. A targeted, sophisticated and institutional marketing communication toolkit is a key part of that experience.

13 Verbal Identity: The Elevator Pitch Have a Hook : Open a pitch by getting the Investor's attention with a "hook, A statement or question that piques their interest to want to hear more Keep it to About 150 to 225 Words: Your elevator pitch should go no longer than 60 seconds Remember Passion: Investors expect energy and dedication from managers and entrepreneurs Make A Request: At the end of your pitch, make a request. Ask for a business card or ask to schedule a full presentation

14 Verbal Identity: What s Next? Create an investor centric pitchbook/presentation tell your story from the customers point of view: What s in it for me? Sell benefits not features. When you read a page of your pitchbook do you take away the real benefit to the investor? Differentiate - instead of saying you are different, demonstrate it Less may be more - marketing materials should act like a movie trailer and not war and peace for potential investors Perform a SWOT analysis - identify and highlight strengths and opportunities; understand weaknesses and try to capitalize on threats

15 Verbal Identity: Pitchbook Best Practices A presentation should serve as a movie trailer and be compelling enough to give an investor enough information to request a meeting. Don t go overboard on the content. Create a cohesive but succinct story (total of 20 to 30 pages) Focus on key pages with greatest opportunity for impact Avoid overused terms; remember if a concept or phrase sounds generic to you... they are even more so to an investor who has heard the same theme over 1000 times Maintain a consistent style, voice and tone (reflective of your pitch); Employ perfect grammar, succinctness, clarity and a consistent message Use bulleted form rather than full text paragraphs; Consider a call out/side bar to enforce a key takeaway

16 Verbal Identity: What s In a Pitchbook? Start with a standardized outline and build from there... Executive Summary (or Introduction) Investment or Leadership Team Organizational Structure Performance Summary Investment Philosophy (key tenets) Market or Investment Opportunity (optional depending on strategy) Investment Universe (optional depending on strategy) Strategy and Approach (more tactical info, not philosophical) Investment Process (multi-page if robust and repeatable) Portfolio Construction Risk Management (portfolio, position and fund level) Fund Terms and Service Providers Key Takeaways (only if not generic) Appendix: Management Biographies; Investment Examples; Performance or Exposure Data, Contact Information; Disclaimers

17 Visual Identity: Pitchbook Best Practices Think about the investor experience with your pitchbook content is critical but meaningless if an investor can't get past poor information architecture That said, use meaningful visuals - when applicable, use dynamic, clean and well-developed illustrations to communicate a message, process, strategy or approach; use charts and data driven models to communicate a concept or message over text or a table Be consistent - strict adherence to basic brand standards can emphasize an institutional infrastructure and reaffirm professionalism

18 Online Identity: Benefits of Public Website We have found that one of the real values of branding, both verbal and visual, is helping clients manage their online reputation. Recent surveys of institutional investors find that "reputation" has become a key characteristic when choosing an asset management firm Strategic branding across messaging, positioning and identity design is an asset that equates to critical exposure in an overcrowded space and influence with investors With today's changing dynamic of information gathering, investment managers recognize the need to create or recalibrate their web presence and online presence for reputation management

19 Online Identity: Benefits of a Portal/IR Engine Automation of Communications provides 24-hour access to fund information, including pitchbooks, investor newsletters, transparency reports, OM/PPM s, fund performance, market commentary, industry standard due diligence questionnaires, docs/sub-docs and account information Fund Compliance ensures only qualified visitors see the respective data they are assigned to see via a permissioning system. This action isn t just good investor relations, it s a regulatory requirement. IR Engines can monitor user access on the site and link to a CRM in order to track user access Strengthen Marketing Efforts funds spend a significant amount of time communicating with investors. A professional and dynamic data room can assist with the marketing effort of an IR or business development team.

20 Online Identity: Reputation Management Fact: Google processes 3.5 billion searches every day. It is the most widely used tool to search for information on your firm, your team and your reputation. As prospects mine for information and perform due diligence online, what are they going to find? Does your website properly represent your organization? Does it communicate the right message and provide a sophisticated and effective user experience? Does it speak to "benefits" or just outline "features"? A web presence can be a proactive tool to communicate who you are, what you do and how you would like to be perceived by the public

21 Role of a CRM Platform

22 The Case for a CRM? Effective relationship management drives business CRM = Central Repository Establish New Business Processes Learn from Wins and Losses Nurture Clients; Improve Satisfaction

23 #1 Establish New Business Processes Processes = Organization Adoption Compliance Support Software is worth it Investor Relationship Tracking Processes = Insights

24 #2 Learn from Wins and Losses Monitor and act on investor pipeline data Understand (and capitalize on) why you are winning Hone in on (and fix) why you are losing Layer CRM data with internal Investor data

25 #3 Nurture Clients; Improve Satisfaction Understand complex client relationships Know client s influencers Act on communication preferences i.e. Send reports to correct seasonal residence History of investor s portfolio

26 The Right Time for a CRM? At Launch At Start of New Year When Manual Processes Start to Fail When Growth & Client Service are Priorities

27 Reassessing You Current CRM A CRM Should: Add value Be easy to use Enable informed decision making Provide visibility Support sales and marketing A CRM Should NOT Be hard to use, customize or frustrating

28 CRM Selection Criteria Workflow Alignment Fit out of the box or customizable? Flexibility to match firm s processes Result in increased efficiency + usage Deliver ROI Marketing Campaigns Visibility via a single dashboard Conduct, track and analyze campaigns Enable quick campaign execution Interact with Investors at a high level Pipeline Tracking Central repository for accurate and fast forecasting and visualization of investors, future investors, potential allocations, etc. Unique requirements

29 Keys to CRM Success Data integration is key Solid understanding and support of your business Build a long standing partnership

30 Questions? Jaime Bean Managing Director Ledgex Systems Lauren Colonna Principal & Creative Director Ovis Creative