Third Party Marketing Agency: The decision to hire a third-party marketing agency is a significant step for any asset manager or hedge fund looking to enter one or more new markets. These specialised service providers distribute funds, develop tailored market and distribution strategies, and provide access to local investor networks.
But what exactly differentiates a mediocre from a great third-party marketing agency? What should you look out for when choosing one? In this article, we explain the key criteria and considerations for a third-party marketing agency and provide helpful tips on what to look out for when choosing one.
What exactly is a third-party marketing agency?
A third-party marketing agency is an external company that specialises in the distribution and marketing of investment products such as investment funds or hedge funds. It acts as an agent for the asset manager, helping it to place its strategies in new markets – often in regions where the asset manager does not have its own distribution structures and investor contacts.
The main tasks of a third-party marketing agency include:
- Fund distribution: the agency presents the asset manager’s investment funds to potential investors in order to acquire capital.
- Market entry strategies: development of strategies for entering new markets, e.g. in the European Union (EU) or the DACH region (Germany, Austria, Switzerland).
- Access to local networks: thanks to its existing relationships with institutional investors and distribution partners, the third-party marketing agency can quickly establish contacts with investors.
- Compliance and legal support: The agency ensures that all marketing and sales activities comply with the regulatory requirements of the respective country.
- Marketing and PR: Support in positioning the asset manager’s brand and all marketing and communication activities.
- Investor relations: Cultivation and support of existing investors, upselling of strategies/products and acquisition of new investors.
- Organisation of roadshows and events: Planning and execution of investor meetings and events to present the funds.