This is my last post in my series on 3PMs. Today, I will focus on the Sales Cycle, what I consider a slow race to the finish. I guess though, a slow race that you win is better than a quick race you lose.
First, let me explain what a gatekeeper is. Since many of us don't have the time or expertise to manage our own money we use the services of a financial advisor (FAs) or a private banker to help us make our investment decisions. Likewise, gatekeepers are “financial intermediaries” that represent large institutional investors, such as the Florida Board of Administration, Ford Motor Company, or New York University.
One of the most important jobs a 3PM has is to help its manager clients determine which investors would be most interested in their product offering(s). This will determine the distribution channels the 3PM will focus its efforts in. To determine this, we consider a variety of factors such as the product, the vehicle it is being offered in, the benefits and risks of the strategy, terms such as minimum account sizes and fees, tax implications and many more.