Third party marketers (3pm”s) are essentially hedge fund brokers. They represent various hedge fund products and introduce and sell these products to qualified investors.

The Third Party Marketers Association estimates there are about 500 third party marketers in the United States. Not very many, relative to the amount of hedge funds that are out there.

“With more than 10,000 estimated funds, and only 500 3pm”s, it is easy to realize why 3pm”s have a reason to be picky.” Evan Rapoport, co-founder of HedgeCo Networks, explained, “So if you are a hedge fund that is less than 10-25 million, don”t be surprised if you do not find a third party marketer to represent your fund.”

If you are looking for hedge fund marketing, some items to think about include:

* Is the marketer licensed?
* What is their experience in raising assets for hedge funds?
* How do they source their investor contacts?
* How do they make sure these investors are qualified to invest in your fund?
* Will they “screen” their investors with your firm prior to introducing your fund?
* Does the firm have any disciplinary items your firm should be aware of?
* How many hedge funds does the firm market?
* How many salespeople will be marketing your hedge fund?
* How many other hedge funds with a similar strategy does the firm market?

There are plenty more but these should give you a good start when interviewing potential candidates.

By:  Aaron                        Source

This entry was posted on Thursday, November 5th, 2009 at 9:13 pm and is filed under Scoop. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.