When you think about your investment process, which of the following best describes why your value proposition is more attractive than a similar performing peer? Put another way – what makes an investor focus his time diligencing your fund over someone else’s?
In the simplest terms, there really can only be a few reasons:
You do it “better” because you have more experience…or a smarter approach…or a more effective process
You do it differently than others – or leverage something that others cannot – such as a proprietary model or technology, research, sourcing, or relationships
Your investment focus is particularly specialized or niche in some way
Maybe you have a more established, institutional infrastructure or “check more boxes”
Whatever it is – either you are better at it, you do it in a smarter way, do it differently, or just make investors feel like they are taking less career risk – your strategy and platform are perceived to offer something that others do not.
Now ask yourself, which of the above can you apply to your marketing process?
Seriously – growth doesn’t happen through performance alone. A $100mm fund compounding at 20% over 5 years ‘only’ grows to $250mm. It’s the marketing that gets it beyond there. And a good marketing process can get it far beyond there.
Chances are that the answer to all of those questions is “no.” But really…why not? Fundraising is a time consuming, mind-sucking process. But in a high margin, highly competitive industry like ours, it’s also a necessity.
You know that pretty much everyone else is doing the exact same thing as you. Why wouldn’t you want to do it “smarter” or “better.”