Our thinking Quick reads The three key pillars behind institutional AUM growth
Fundraising, investor relations and marketing
January 2022
3 min read

The three key pillars behind institutional AUM growth

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Regardless of what form of asset management you partake in, if you do these three things you will have greater AUM growth.

1. Layer your story strategically

Many asset managers walk into a meeting with an LP with no real plan on how they are going to tell their story. Because of this, it is often poorly done. There is little in the way of interaction, and very few managers qualify interest at the outset of a meeting. If a manager hasn’t established whether or not a prospective LP is interested in what they do within the first two minutes, they are doing it wrong.

At this stage managers typically say that they can not adequately convey the complexities of their story two minutes. I hate to be the one to say it, but this is BS.  The more complex the story, the greater the need to simplify. Managers need to be able to quickly and effectively state why a prospective should care. After that, get the heck out of the room as fast as you can with a very clear take away established.

*If you are ever in a meeting, don’t hand out your deck and talk through it. If you don’t understand why you shouldn’t do this… call me.

2. Communicate consistently

Really? Yes, really. Asset managers don’t tend to understand that they are not trying to demonstrate their legitimacy day one. They are, rather, competing for time. And remember we are talking about marketing – talking to people that don’t know you. You first have to get someone’s attention before you are able to demonstrate that you are worthy of that attention. Is this painful, 100%, however, if you aren’t getting in front of new LPs on a continual basis, you are never going to change the trajectory of your AUM growth.

*If you aren’t emailing a large list of prospective new LPs every month, you aren’t in a position to complain about AUM growth. Marketing is hard – DO THE WORK!

3. Let the machine do the heavy lifting

I say this 39 times a day, sometimes 43. Marketing is no longer a manual process. Managers need to rely on CRM and email software that allows them to categorize prospects and track lead scorelead score is simply the point value you apply to engagement – the higher the engagement the higher the lead score). If a manager wants to get really fancy, they should track PDF views and video views as well. Simply put, there isn’t enough time in the day for any team to personally reach out to enough perspective LPs to make a difference  (obviously after optimizing existing relationships).

*If you aren’t extremely proficient at leveraging marketing technology, you are leaving money on the table. There is no other way to put it.

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