How US Fund Managers Can Access an International Investor Base

Access to Global Markets: A Guide for US Fund Managers

US fund managers often face the challenge of reaching a global audience. However, by making their products bankable and establishing strategic distribution partnerships, they can significantly expand their reach. Here’s how:

Making Products Bankable

Issuing Investment Opportunities as Securities

One effective way for US fund managers to attract international investors is by issuing investment opportunities in the form of securities from the onset. This process involves:

• Securitisation: Transforming assets and strategies into securities can make them more attractive to a broader range of investors.
• Regulatory Compliance: Ensuring compliance with international regulations to enhance the appeal and trustworthiness of the investment product.
• Liquidity: Providing liquidity to investors, making it easier for them to buy and sell their investments.

Collaboration with ICSDs

International Central Securities Depositories (ICSDs) play a crucial role in making US investment products accessible to a global audience. Collaborating with ICSDs can:

• Streamline Distribution: Simplify the process of distributing securities to international investors.
• Enhance Transparency: Offer clear and standardised reporting, increasing investor confidence.
• Facilitate Settlement: Provide efficient cross-border settlement services, reducing friction in transactions.

Creating Strategic Distribution Partnerships

Partnering with Wealth Advisors

Wealth advisors can help bridge the gap between US fund managers and potential investors. By partnering with wealth advisors, fund managers can:

• Leverage Existing Relationships: Tap into the established client base of wealth advisors.
• Offer Tailored Solutions: Provide investment products that meet the specific needs and preferences of the advisor’s clients.
• Increase Credibility: Gain credibility through the endorsement of trusted advisors.

Collaborating with Private Banks

Private banks are another vital channel for reaching international investors. Key benefits of these partnerships include:

• Access to High-Net-Worth Individuals: Private banks typically serve wealthy clients looking for exclusive investment opportunities.
• Comprehensive Financial Services: Offering a range of financial services that can complement the fund manager’s investment products.
• Brand Association: Aligning with reputable private banks can enhance the perceived value of the investment product.

Engaging Multi-Family Offices (MFOs)

Multi-family offices (MFOs) represent a strategic opportunity for US fund managers seeking to broaden their investor relationships. These sophisticated institutions manage investments for multiple high-net-worth families and offer several key advantages as distribution partners:

• Diversify Investor Base: Build relationships with multiple family groups through a single institutional connection.
• Provide Customised Solutions: Create tailored investment vehicles that address the specific wealth management objectives of family clients.
• Leverage Expertise: Tap into the deep investment knowledge and comprehensive financial planning capabilities that MFOs offer their family clients.

Conclusion

Expanding into international markets requires strategic planning and collaboration. By making investment products bankable through securitisation and collaboration with ICSDs, and establishing distribution partnerships with wealth advisors, private banks, and MFOs, US fund managers can effectively tap into a global investor base.

FundFront specialises in helping to navigate these complexities, offering bespoke solutions for fund managers. Contact us to learn how we can help you reach an international audience.

Email us at hello@fundfront.com or complete the contact form on our website here. 

Disclaimer

FundFront provides operational and technological solutions for fund structuring, securitisation and management. We do not provide legal, tax or financial advice. We recommend that you consult with professional legal or financial advisors to ensure compliance and appropriateness for your specific situation.