Making the JOBS Act Work: Mad Men Meet Wall Street Hedge Funds Can Advertise


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Hedge funds, private equity groups and other private placements will soon be allowed to use social and traditional media platforms to create brand awareness through marketing their investment and managers to the generalized public. Here are best practices

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  • Create examples for each one of these title 3 – Trump will be on TV fundraising to build is next casino.
  • Making the JOBS Act Work: Mad Men Meet Wall Street Hedge Funds Can Advertise

    1. 1. Making the Jobs Act Work:Mad Men Meets Wall Street1
    2. 2. HNW MATTERS WEBINAR SERIESSeries created specifically to help high-net worth community manage for thefutureFeaturing industry experts andinnovators addressing critical issuesfacing financial services firms2
    3. 3. April Rudin•Financial Services Industry Marketing Consultant•Ultra-High-Net Worth / High-Net Worth Sector Specialist•Digital and Social Media Engagement and Client AcquisitionExpert•Multi-Generational Communications and Media RelationsStrategist•Frequent contributor to national media outlets including TheHuffington Post, BusinessWeek, Bloomberg, Reuters,Fundfire, Family Wealth Report and AssetTV•High-Net Worth Advisory Board Chair for The Hedge FundAssociation (HFA)CONSULTANT TO THE STARSOF THE FINANCIAL SERVICES INDUSTRY3
    4. 4. About The Rudin Group• Integrated marketing, branding and communicationsstrategies for the financial services industry• Helping UHNW / HNW community create clientacquisition plans that take advantage of next generationdigital platforms and communicationsChallenging ―Business as Usual‖ Practices4
    5. 5. A Day in the Life of April Rudin5
    6. 6. Our Agenda• What Is The JOBS Act?• How Does It Impact Asset Managers And The WayThey Do Business?• What Does It Mean For Connecting with UHNWInvestors/Institutional Investment Communities?• The Role Of Social Media In General SolicitationMaking the JOBS Act Work:6
    7. 7. Disclaimer:7The information discussed does notconstitute and should not be construedas legal advice.
    8. 8. What is the JOBS Act?8Intended Consequences:1. Stimulate small businesses to create jobs2. Alleviate tight credit markets3. Access to capital – new ways for investors andmanagers to connectUnintended Consequences:1. Ended the prohibition on advertising and directmarketing by alternative investment firms – andsocial media!2. Opened the door for financial services firms toaccess capital through crowd-funding3. Third-party vetting
    9. 9. The JOBS Act Is A Law —Stop Dawdling• Determine your process forvetting investors– SEC recommends that firmstake ―reasonable steps‖• Here comes the Airplane!Create your marketing plannow--early adopteradvantages and help standout in the coming ―Ad Blitz‖9
    10. 10. The Opportunity For Funds, PE10•Distinguished brand - visibilityamong peers and growing numberalternative investment strategies•Access to UHNW / institutionalinvestors through digital media/nextgen wealth and affinity investing•Improved industry reputationamong the general public
    11. 11. Historical View ofHedge Fund Managers11
    12. 12. Public Perception at Odds with Reality12•Most funds rely on established trackrecord of delivering superior riskadjusted returns for accredited andinstitutional investors•Increasing inflows from public andprivate investment funds seeking toovercome funding shortfalls•Entrepreneurial business communitythat creates jobs and supportsgreater market efficiencies
    13. 13. The Veil Is About To Be Lifted…13•Alternative investment firms maintainhigh levels of investor privacy – seenas secretive•Prohibited from generalizedadvertising – cap intro, performance-driven marketing, word-of-mouth•Previously seen as an unregulated―Wild West‖
    14. 14. The Advertising Avalanche14Many large fund managers have theresources to finance:•Television /radio Ads•Internet advertising•Event sponsorships•Venue naming rights•Product placements / endorsementsEveryone will be inundated withinformation from alternative investmentmanagersThe New Super Bowl Ads-from Doritosand Beer--- Hedge Funds!Where The ―Boys‖ Are…
    15. 15. Everybody Wants a Piece of thePie• Large financial institutions selling―alternative investment-style‖ mutual fundproducts• ETFs offering hedge fund replicationstrategies• Roughly 10,000 other active alternativeinvestment firms – in the United Statesalone!• Allows managers to differentiate productsand services in an increasingly crowdedmarket place15
    16. 16. Next Gen Value PropsAre Different•Value Affinity Investing --at the heart of Crowd-funding•Doing Good While Doing Well•Smaller is better•Don’t Trust Suits•Diminishing value of ―track record‖•Transparency/Authentic•Mobile (Digital) Community16
    17. 17. Targeted Messaging vs. MassMarketing• Target and ―talk‖ directly to each of yourniche audiences via digital strategy andmedia outreach• Education is Important--UHNW investorswant to make informed decisions amidflood of information – 44% of millennialsdescribed themselves as “extremely”interested in improving theirunderstanding of investing*• Flattened playing field for smaller funds17*Accenture 2013: "Generation D: An Emerging and Important Investor Segment"
    18. 18. • No more intermediaries – Cap Introgoes away / replaced with digital• Who vets the accredited investor? Newstandards – individual or joint net worth(with spouse) exceeding $2M atpurchase, or AUM $1M or more,excluding the value of primaryresidence• What are ―the steps?‖ What isreasonable?18A Whole New World….
    19. 19. Broaden the Message forInstitutional Audiences• Power of content• Focused on transparency, fiduciaryduties• Still seek performance but decisionmakers have changed19Every dayAmericans haveexposure toalternativeproducts throughpension funds…Regulators willbe watching
    20. 20. Striking a Chord with Institutional Investors20Reinforce positive attributes, differentiatorsthrough primary messaging:• Returns – how achieved ANDbottom line results• Transparency / ProcessesSecondary Themes:Education for pension managers / plansponsorsDoing well by doing goodPositive impact on economyCommunity / charitable involvementAffinity investing
    21. 21. How Allocations of MarketingResources Have Changed21Source:
    22. 22. How Do We Utilize Social Media?22Platform Unique Factors Strategies and Best PracticesLinkedIn Business networking and relationship building,introductionsStructuring your profile and joining groupsFacebook Small Business/Personal branding/Consumer brands B to C, Business pagesTwitter Opportunistic, newswire, short burst in real-time Aggregating and curating content to attractYouTube Most AuthenticTeach and LearnLook + ListenIn five years, all websites will be videoGoogle+ Feasting on SEO and Adword content Struggling to be all thingsBlogging Thought-Leadership + POV, Complex ideas Content + opinion;Commenting and engaging with others
    23. 23. The Social Media ImperativeSource: Copyright Spectrem Group 2013UHNW = Net worth of between $5 million and $25 millionHNW = Net worth of between $1million and $5 millionBlog2347% of UHNW56% of HNW32% of UHNW31% of HNW8% of UHNW8% of HNWRegularly read blogs thatpertain to financial topics19 % UHNW 16% HNW
    24. 24. Who Is Using Social Media?Source: Pew Research Center/American Life Project24•86% of 18-29 year-olds use social media•Over 70% of 30-49 year-olds use socialmedia•50% of 50-64 year-olds use social media
    25. 25. How is Social Media Used?Source: Spectrem Group 2013Younger UHNW investors aremore inclined to use socialmedia as a communication tooland read their advisors’ blogs.•More than 25% of thoseunder age 44 would followan advisor on Twitter.•More than 40% would readcorporate blogs•Over 30% rely more onsocial media for informationthan on traditional channels25
    26. 26. The Role of Public Relations26•Complementary communications•Reinforce marketing themes andmessaging•Adapt content for niche markets•Establish relationships with relevantmedia•Crisis communications / contingencystrategies•Lather, rinse and repeat…
    27. 27. Oh, and BTW27Crowdfunding has ―Arrived!‖•Innovative asset managers can allocatemarketing resources by utilizing crowd-fundingplatforms•Create new paths for funding small businessdue to credit crunch•Jumpstart the economy via investing in smallbusinesses
    28. 28. Crowdfunding Restrictions28For the individual:One of the conditions of this exemption is a yearly aggregate limit on theamount each person may invest in offerings of this type, tiered by the personsnet worth or yearly income. The limit ranges from 2% of people earning (orworth) up to $40,000, up to a cap of $10,000 for people earning (or worth)$100,000 or more.For small businesses:Crowdfunding available only to issuers who do not sell more than $1 million toinvestors during any 12-month period. Companies seeking to raise over $1million in 12 months will not be able to use crowdfunding.
    29. 29. Here are the take-aways:29The JOBS Act has yet to be enacted, but it is law.“It’s soup!”It’s time to develop affinity based platformsto enhance client acquisition / communicationswith Next Gen wealthyGeneralized Solicitation is an opportunity to:•Differentiate brand•Create community•Improve sentiment•Market affinity•Target niches•Enhance transparency
    30. 30. Q & A Discussion30
    31. 31. April Rudinapril@therudingroup.comtwitter: @TheRudinGroupThank You!31
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