To find new investors for your fund, you’ll need to know where to look. Insight comes from data that can be used to make decisions. Your transfer agent partner’s investor record-keeping system should be able to provide actionable data. This is, however, a rare occurrence. Only a few transfer agent firms have created technology that can provide comprehensive sales and marketing reports using data from the transfer agent system.
To maintain their clients’ investor databases, transfer agent firms utilize ‘investor record-keeping’ or ‘transfer agent’ systems. Because the alternative investment industry lacks a uniform record-keeping technology, transfer agent businesses have built or modified a range of system solutions to manage the back-office tasks of client fund sponsors. Some transfer agent systems have been altered from systems developed for publicly traded funds, which have quite different transfer agent requirements. Some are a tangle of systems that have been cobbled together in an attempt achieve all of the functionality they required for transfer agent processes. Some ‘transfer agent’ systems are just CRM systems that have been repurposed.
Only a few transfer agent systems are built specifically to administer specialized alternative investment funds from the bottom up. Even fewer transfer agent systems are capable of harnessing investor, advisor, sales and transaction data for reporting that provides relevant insights to the fund sponsor’s sales team in order to facilitate future sales.
Sales teams can discover new investor opportunities using a transfer agent system with reporting that reveals the most fertile ground highlighted by historical sales success. The reporting capability of an advanced transfer agent system reveals which financial advisers have the best track records, who are the most dependable and long-term investors, which geographies are the most fertile and who the top investors are. Management can gain valuable sales intelligence from a transfer agent system and deploy sales teams efficiently allowing them to raise more capital. Only a sophisticated transfer agent system with comprehensive reporting capabilities can transform transfer agent data into actionable sales data.
A transfer agent system can also aid sales by streamlining the new investment process. Transfer agent system connections to industry platforms such as AIP and DST FAN Mail, as well as connections to electronic subscription systems and direct digital inputs from client website subscription forms, bring alternative fund investing closer to the experience of investing in a mutual fund.