You’ll need to know where to look to get fresh investors for your fund. Data is helpful in sourcing new investors if it provides real insight. The investor record-keeping system of your transfer agent partner should be able to deliver actionable data. However, this is a rare capability among transfer agents. Only a few transfer agent companies have developed technology that can provide full sales and marketing reports based on the historical data from their transfer agent system.
Transfer agent firms use ‘investor record-keeping’ or ‘transfer agent’ systems to keep track of their clients’ investor databases. Transfer agent organizations have established or modified a variety of system solutions to manage the back-office chores of client fund sponsors. The alternative investment transfer agent industry lacks a uniform record-keeping technology. Some transfer agent systems have been modified from those designed for publicly traded funds, which have quite distinct transfer agent needs. Some are a jumble of systems that were cobbled together to try to provide all of the functionality needed for transfer agent activities. Some ‘transfer agent’ systems are little more than repurposed CRM systems.
Only a few transfer agent systems are designed from the ground up to handle the specialized needs of alternative investment funds. Even fewer transfer agent systems are capable of the kind of reporting that reveals important insights for the fund sponsor’s sales team. Comprehensive reporting on sales and transaction history facilitates future sales by combining investor, adviser, sales and transaction data to identify the most likely sources of future sales.
A transfer agent system with reporting that points out the most fertile territory highlighted by prior sales success can help sales teams uncover new investment opportunities. A sophisticated transfer agent system’s reporting capability discloses which financial advisers have the best track records, which investors are the most dependable over the long-term, which regions are the most fertile and who the top investors are. A transfer agent system can help management gather vital sales intelligence and efficiently deploy sales teams, allowing them to raise more funds. Only a sophisticated transfer agent system with extensive reporting capabilities can turn transfer agent data into useful sales information.
A transfer agent system can also help with sales by making the new investment procedure more efficient. Connections between transfer agent systems and industry platforms like AIP and DST FAN Mail, as well as electronic subscription systems like AIX and Wealth Forge and direct digital inputs from client website subscription forms, bring alternative fund investing closer to that of mutual fund investing.