top of page
Search

Why Alternative Managers Must Rethink Their Consultant Database Strategy

For alternative asset managers operating in niche markets like private equity, hedge funds, and real assets, the rules of engagement can differ significantly from those guiding traditional managers. To thrive, alternative managers must adopt tailored approaches that address their unique complexities and meet investor expectations.

Alternative investment strategies are inherently complex, requiring more context and nuance than their traditional counterparts. Reporting to consultant databases for alternatives is vastly different than a traditional strategy but can yield the same opportunities to raise AUM. Investors evaluating these offerings are not just looking at performance metrics, they are scrutinizing the underlying strategy, its objectives, and associated risks.


Standing Out Through Niche Expertise


Alternative managers often compete on specialized expertise. In consultant databases, where investors rely heavily on filters and analytics, a generic profile will not suffice. Managers need to clearly communicate their niche focus and value propositions that demonstrate why their expertise is a better fit than other potential peer competition. 


Unlike traditional managers who manage similar asset classes, most alternative managers operate under the radar for many reasons. This lack of visibility places a premium on how well they present themselves in consultant databases.


Transparency and consistency are key. Profiles must be detailed, accurate, and regularly updated to inspire confidence. From historical performance data to the intricacies of fund structures, every data point should work toward building trust with sophisticated investors.


Crafting a Winning Strategy

For alternative managers, success in consultant databases hinges on deliberate and strategic planning. Here is what to consider:


Detail-Oriented Profiles:  Comprehensive profiles should include final performance data, detailed descriptions of the strategy/fund, and structural details like fees, liquidity terms, Subscription & redemption rules, and lock-up periods to name a few. Investors use this information to evaluate alignment with their objectives.


Customized Narratives:  A compelling story is critical. Managers must articulate their expertise, demonstrate alignment with investor goals, and balance technical detail with accessibility.


Proactive Updates:  In a fast-evolving market, outdated profiles are a liability. Regular updates that meet reporting deadlines for items such as performance, AUM, exposure data, etc., especially for emerging strategies, will keep a manager competitive and relevant.


Transparency and Trust:  Alternatives inherently carry more risk and complexity. Managers can foster trust by clearly communicating both the potential rewards and the associated risks.

Alternative asset managers face unique challenges in standing out to institutional investors. Consultant databases are no longer just a tool for visibility—they are a battleground where precision, transparency, and storytelling provide many opportunities to raise AUM.


For managers willing to embrace these platforms strategically, the rewards are significant: increased visibility, enhanced credibility, and stronger connections with sophisticated investors.


At IMSS, we understand the nuisances alternative managers of all sizes face with data reporting and the importance it has when it comes to raising aum.  Our goal is to support managers across all segments of the market, building comprehensive profiles that get them noticed while creating a more streamlined process for collecting and reporting information. 


We invite you to contact us to discuss how IMSS can help you make your reporting count and stand out in a growing and highly competitive market.

 


Comments


bottom of page