5 Questions for Third Party Marketers, A Series

July 26, 2007 |

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Ok.  You now have enough assets under management to begin scouting out third party marketers to raise more investment capital for your fund.  You’d like to spend more time managing your strategy than raising capital! So …

The first thing any hedge fund manager working with a sales agent/marketer should consider is with whom they are dealing.  I know it sounds pretty basic, but I’ve heard many stories in my time from managers who were either disappointed or duped.  Therefore, HFL will be posting a series of 5 questions every hedge fund manager needs to ask a marketing agent before signing with them.

So, here’s question #1:

Who are the officers, directors and key personnel are of the firm? Ask them to provide names, title, background, registrations (if any), and number of years with the firm for each member of the management team. Get descriptions of their responsibilities and how the key personnel would be involved in the management of your “account” with them. If you find that the firm is populated by 24 year olds, fresh from tearing up the playing fields of a university, you might want to reconsider working with that firm.  Also ask WHO on their team will be actively marketing YOUR fund? Meet with this person and make sure they understand your fund, your strategy and how your fund is different.  Demand and expect periodic updates from THIS person.  Don’t rely on the managers of the firm to report the updates to you.  Get the reports from the guy in the trench, the one making the calls for you.

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