New Managers
February 2018
MARKETING CHALLENGE: Diane Harrison: What Family Offices WantWhat Family Offices Want From Alternatives Managers Competition within the alternatives sector for family office investments is at an all-time high, as these investors get more comfortable with the range of assets available to them and their general understanding of alternatives rises. Fund managers want to win these wealthy investors over, but often find they are unsure of how best to pursue them. The family office client is increasingly demanding a more tailored approach to wooing them over. Managers who can adapt their prospecting tactics stand a better chance of winning a partnership with these prized investors THE RELATIONSHIP SOURCE IS SHIFTING In a recent article on Forbes.com, "Single Family Offices and the Ultra-Wealthy are the Keys to Raising Capital for Smaller Hedge Funds," Russ Alan Prince made an interesting observation about the broadening range of advisors who influence family office investment activity. Increasingly, other high-net worth intermediaries beyond traditional financial advisors, such as lawyers and accountants, are weighing in on investment decisions for the wealthy. In order to maximize the chance of getting a review from high net worth investors, fund managers, particularly smaller hedge funds lesser known overall, can widen their contact efforts to include private client attorneys and accountants who specialize in providing alternatives guidance, and in so doing, tailor their marketing communications to appeal to these professionals Topics of appeal to these individuals include favorable tax implications of fund structures, risk modification to portfolios including alternatives, and uncorrelated return characteristics to traditional asset classes, among other subjects. Endre Dobozy, manager of FTM Limited, a firm specializing in low-volatility alternative investments, agrees with these last two points, in a recent article on Kiplingers.com, "The Five Best Investment Deals You Can M...................... To view our full article please login
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