How Fund Managers Differentiate

In today’s competitive landscape, differentiating your firm from the competition while attracting and securing the right investors (with the right terms) is key to your overall success and growth.  

To successfully cut through the noise and differentiate, more and more firms are shifting from manual processes to data-driven solutions. Through automated data solutions and software, PEs/VCs can easily aggregate information across their portfolios to assist in everything from accelerating fundraising efforts and securing the right investors to leveraging analytics to unlock endless possibilities and growth opportunities.

By accurately leveraging data to make key connections and provide value, firms can set themselves apart and differentiate from the growing competition in this new data-driven landscape.

The Shift from Process to Data

It’s becoming increasingly difficult for asset managers to differentiate themselves based on processes alone. Instead, as the industry shifts away from manual processes and focuses more on AI-driven approaches, asset management firms are looking to automate all of the operations involved in the passive investment process and lean into data as a primary source of differentiation. 

Through an automated data collection platform, like Altvia’s, fund managers and institutional investors can leverage smart technology and AI. Technology solutions make it possible to collect reliable data that displays the financial performance of companies and provides insights that inform performance drivers. 

For example, before implementing Altvia, Cendana Capital got by using Excel, email, and other tools to capture and maintain data. However, with filtering and tracking limitations, the small team found this process time-consuming and made it difficult to manipulate the data.

After integrating Altvia into the firm, Cendana Capital enhanced value by having easy access to quantitative data and qualitative data that creates transparency, builds trust, and enables the firm to easily identify trends in the market before the competition.

See how Altvia is helping Cendana Capital differentiate.

3 Steps Fund Managers Can Take to Differentiate 

The strategy for securing investments is a critical component of the firm’s overall success and future growth. While it’s never an easy task, differentiating yourself through networking and value-added marketing throughout the funnel can increase your chances by cutting through the noise and setting yourself apart from the competition. 

By taking a tactical approach, differentiating your firm from the competition is achievable through a combination of data-driven insights, automated processes, and a bit of patience and persistence. 

  1. Network

    As a start, PEs and VCs need to take the time to network and expose the firm to new and different types of funding options. Go to as many events and conferences as you can to put your firm in front of key stakeholders. After all, even in today’s digital landscape, nothing can replace a face-to-face element to build personal relationships and set yourself apart.

  2. Communicate

    When investors know nothing about your firm, they don’t know what makes you different from the rest – so tell them.

    Whether through face-to-face meetings or via your marketing channels throughout each stage of the funnel, take the time to communicate what sets your firm apart from the rest.

  3. Add Value Through a Data-Driven Marketing Approach

    We could argue that this step is the most important for differentiation. Set your firm apart by adding value throughout your entire marketing funnel and leverage data to help tell your story.

    Start by spending a significant amount of time researching your target audience and developing top-of-funnel content (like newsletters, webinars, and blogs) that aligns with your audience and addresses their core pain points. 

As your leads move through your marketing funnel, provide supporting information-packed content and messaging (think: white papers, sales and data sheets), including relevant statistics and decision-driving material. By showing actual insights that set you apart from the competition, you can let your data tell the story for you as you differentiate your firm from the rest while driving lead conversions through the funnel. 

Let Your Fund Management Software Do the Differentiating for You

With Altvia’s software solution designed specifically for PEs/VCs, you can easily empower your firm to communicate your edge with objective data, including detailed insights on your firm’s track record, ongoing execution of the investment thesis, and other critical points of differentiation.

To learn how fund management software can enable your firm to better differentiate from the competition, contact our team to set up a call to help.