Marketing Opportunities for Alternative Investment Managers

Complimentary Webinar Hosted by Richey May

Speakers:Holly Singer, President of HS Marketing

Lisa Vioni, CEO and Co-Founder of Hedge Connection

Moderators:Stephen Vlasak, Director of Business Development at Richey May

Daniel O’Connor, Assurance Partner at Richey May

Marketing Opportunities for Alternative Investment Managers:

Communication Best Practices

Traps to Avoid

May 13, 1015 Webinar Richey May

Holly Singer, President of HS Marketing LLC

Communication Best Practices

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1. Focus on defining and building your brand Who are you? What do you do? What sets you apart? How do you want to be perceived?

2. Create a compelling message Cover 5 P’s: People, Philosophy, Process, Product and Performance Lead with qualitative message points Explain the opportunity set relevant to your strategy Highlight your value proposition/competitive advantages

Communication Best Practices

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3. Package your business professionally Communicate verbally and visually Apply consistent branding across all communication components You only get one chance to make a first impression!

4. Complete your marketing tool kit prior to asset raising

Logo, Pitch book, Website, Investor reports Upgrade or update collateral items as needed

Communication Best Practices

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5. Apply time-tested pitch book tips Less is more Use headline approach to highlighting key takeaway per slide Offer performance analysis /captions to explain metrics Create clear visuals to support your story Aesthetically attractive presentations reflect your commitment to

building your brand

6. Seek legal/compliance review and approval before implementing new communication initiatives.

Communication Best Practices Be Understood. Be Heard. Be Seen.

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Traditional One-on-One Capital

Raising: Meetings with Pitch Books

Modern Marketing Activities & Platforms

Communication Best Practices Be Understood. Be Heard. Be Seen.

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7. Seek thought leadership opportunities to be heard and seen Articles and white papers Videos/multi-media content Speaking engagements

8. Selectively integrate public relations (PR) initiatives Earned press can reinforce credibility and build your brand

9. Leverage social media channels – cast a wide net Blog posts, Linkedin, Twitter Create and curate fresh content

Communication Best Practices Be Understood. Be Heard. Be Seen.

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10. Take advantage of modern marketing platform exposure to pre-qualified investors Be heard, seen and understood online and offline Meet asset allocators within a fully compliant environment Leverage Hedge Connection’s robust offerings that efficiently

integrate virtual and real 1:1 investor meeting opportunities

Traps to Avoid

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1. Ad hoc marketing without a communication strategy 2. Forgetting to create an in-person elevator pitch 3. Waiting too long to develop marketing collateral 4. Not articulating a well-defined and succinct edge 5. Lack of competitive intelligence 6. Forgetting to display contact info via all marketing collateral 7. Infrequent or fair-weather communication 8. Leading your pitch message with performance data 9. Reluctance to actively apply modern marketing and PR opportunities 10. Delaying investor networking opportunities until reaching target track

record or AUM targets

BE HEARD. BE SEEN. BE UNDERSTOOD.

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HS Marketing has been serving the alternative investment community for 2 decades

Fund managers Futures trading firms Asset allocators Service providers

Contact Holly Singer, President http://hsmarketing.com http://twitter.com/SingerHolly 609.275.1303

Scan this code using

your phone’s QR app.

Marketing Opportunities For Alternative Investment Managers

Spring 2015

Challenges Of Raising Capital

❖ Regulatory / compliance obligations: Advertising restrictions & Reg D considerations

❖ Institutionalization driving capital to mega funds: how to get your piece of the pie

❖ Difficult for small/emerging funds to raise capital: chicken and egg syndrome

❖ Third parties provide both solutions and additional problems

❖ Relationships are critical - but how do hedge funds meet investors?

❖ Barriers to entry are higher as allocators require more infrastructure and increase Operational Due Diligence (ODD) requirements

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Develop Thought Leadership Capabilities

❖ Talk about market trends in general

❖ Talk about specific trades that make sense

❖ Talk about your background and experience

❖ Do not write in a way that sounds like you are marketing

❖ Do not talk about your fund specifically, its performance, its assets under management when communicating as a thought leader

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Establish yourself as a trustworthy expert in a given field. Become an influencer, a thought leader, and provider of value.

A Strong Operational Culture is Critical

❖ A Goldman Sachs Survey stated that operational robustness ranked as equal to track record as the most important factor in positively influencing the allocation decision.

❖ According to PAAMCO, their ODD team holds emerging and smaller managers to the same standards as they do to larger, more established managers, and they will not invest in HFMs that do not have operational sophistication.

❖ A recent ODD study by Deutsche Bank found that 70% of the ODD teams interviewed for the survey stated that they now have explicit veto authority, and that such authority was exercised in almost 10% of the manager reviews conducted by the respondents to the survey.

❖ In the same survey, 63% of the investor respondents will not consider investing in a fund that their ODD team has previously vetoed.

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Top 5 Reasons Investors Will Veto An Investment

1. Unwillingness to provide adequate transparency (22%)

2. Inadequate or inappropriate compliance policies and procedures (19%)

3. Poor segregation of duties (12%)

4. Inadequate personnel or lack of relevant experience in critical roles (12%)

5. Inappropriate valuation policy (8%)

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Options For Meeting Investors

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Prime Broker Cap-introBut are you getting any service?

Representation by a Third Party MarketerBut are they really working for you?

Internal MarketerDo you have the resources?

Industry ConferencesHard to pick the effective venues with the right demographics for managers.

Purchase ListsWhat do you do with this information and how up to date is it?

Hedge ConnectionOnline and event based investor introductions.

Hedge Connection’s Capital Club

❖ An online capital introduction service for fund managers

❖ Powered by our patented methodology of connecting hedge funds and investors online

❖ Investment profiles are created from selected opt-in qualified investors

❖ Fund managers build searches and sort results from annotated investor profiles

❖ Fund managers request introductions to investor prospects that match their criteria

❖ Accepted introductions result in a scheduled phone meeting between manager and investor

❖ Fund manager is charged per accepted introduction

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Global Fund Forum

❖ Prominent formal networking opportunity foralternative fund managers and allocators hosted by Hedge Connection

❖ 17 one-on-one meetings between fund managers and allocators in private Forum Suites

❖ Meetings are arranged using a proprietary online scheduling tool on Hedge Connection

❖ GFF’s mobile app (iOS & Android) is used during the event to view schedule and agenda etc.

❖ Hedge Connection leverages its platform to promote participating funds before the event to entire global investor ecosystem.

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Good News For Emerging Managers

❖ Investors are bullish on the new launch landscape: 43% of investors feel that the opportunity set for new launches in the US is attractive.

❖ 68% of respondents indicated a willingness to invest with an emerging manager. These investors have significantly lower thresholds for both AUM and business maturity of the prospective manager (USD $76mn AUM and 5 months on average)

❖ According to the 2014 Deutsche Bank Alternative Investment Survey, funds of funds remain some of the most active early stage investors with 79% indicating that they have invested or would consider investing within the first three months.

❖ Some allocators, especially seed managers, specifically target early stage allocations and launch date funds

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Willingness To Invest In Emerging Managers

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Who Invests When?

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Essential Tips When Starting Out

❖ Don’t wing it - Define your annual marketing / fund raising goals and budget each year

❖ Identify and be able to describe your edge clearly

❖ Begin developing a thought leadership role from day 1

❖ Build a strong business infrastructure with the right service providers

❖ Communicate consistently with prospective investors and build trust

❖ Don’t stop communicating when your performance is not great!

❖ Get out there and start meeting with allocators before reaching your “magic number”

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Contact Us

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Hedge Connection, Inc.141 Parkway Road

Suite 15Bronxville, NY 10708

Tel: (914) 222-9333Email: info@hedgeconnection.comhttp://www.hedgeconnection.com

Stephen VlasakDirector of Business Development at Richey May P: 720-407-5549E: svlasak@richeymay.com

Q&A Session

If you have additional questions after this session,

please feel free to contact us.