Matchmaker for fund managers and investors - Murano Connect
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Matchmaker for fund managers and investors
Number of Funds Worldwide
Investors are bombarded 20,000 36,000
with funds, investment
The market is proposals, factsheets and
meeting requests. Mostly from
16,000
Bond Funds
32,000
overloaded with
12,000
unknown and unsuitable Equity Funds (RHS)
28,000
funds and managers 8,000 Hedge Funds
information, so 4,000
Other Onshore Funds
24,000
it’s very difficult 0
2006 2007 2008
ETFs/ETPs
2009 2010 2011 2012 2013 2014 2015 2016
20,000
for you to get Source: ICI, NASDAQ, HFR
noticed Majority of funds are small, so it’s even harder Majority of AuM is held by large funds
to stand out
Industry assets by firm AuM
Industry assets by number of firms
18.6% 7.9%
Have $100m - $500m
under management VS Have $0m - $100m
under management
3.7% 12.1%
Over $1bn Over $500m – $1bn
under management under management
3.8% 73.9% 19.4% 60.6%
Have $500m - $1bn Have $0-100m Have $100m - $500m Over $1bn
under management Under management under management under management
London: +44 203 405 3370
New York: +1(212) 762 9669
www.muranoconnect.comTHE AVERAGE DAY FOR AN ALLOCATOR
As well as
thousands Getting hold of
an allocator is
of funds, a serious
challenge
investors receive
hundreds of 300 3-5 10-20
emails and calls Emails Meetings Calls
every day: most Sales ones are often
overlooked
They do need to
allocate, but also
Why some allocators
systematically use
get ignored
have other things to voicemail
do
It’s a fragmented system,
and one that is failing…
however,
there is an alternative…
London: +44 203 405 3370
New York: +1(212) 762 9669
www.muranoconnect.comMATCHMAKING OFFERS SEVERAL BENEFITS:
Murano
MURANO
BY THE NUMBERS
unblocks the
pipeline for you 01 02 03 2011
Established
Managers The cost of Sales can be
by matching can control
the sales
asset raising
can be
focused on
building
2
funds to an process drastically
reduced
relationships
with the right
allocators
Offices
NYC & London
investor’s
criteria 125
Clients
We are the only matchmaker in this industry.
We’re in regular contact with thousands of investors.
It’s important to know that our service is not an automated 38
algorithm, we operate on the foundation Employees
of relationships.
We don’t actively sell your fund or strategy: we call and
listen to investor needs and if there’s a match with your
fund characteristics then you get notified of a possible 220
match. Allocator
conversations a day
London: +44 203 405 3370
New York: +1(212) 762 9669
www.muranoconnect.comTransform your asset raising
Murano means Murano
reduces
Murano makes
your sales process
no more your costs more efficient
cold calling
London: +44 203 405 3370
New York: +1(212) 762 9669
www.muranoconnect.comHow much would
you pay The Murano team
consistently delivers well
screened leads
to avoid cold
calling?
WE CAN ALL AGREE THAT COLD CALLING IS:
Murano has called the
investor and done the
pre-screening research
for you:
This is not an automated
process.
We have directly spoken
with and qualified the
investor to find out what
Soul Inefficient And can alienate they want, and when
destroying and frustrate your they want it.
target investor
London: +44 203 405 3370
New York: +1(212) 762 9669
www.muranoconnect.com12%
You can leverage We have over 200 meaningful
allocator conversations a day.
Asia/ME & ROW 36%
Europe
Murano’s We know what investors are looking for
and, more importantly, when. As a
Murano’s
Investor
Geographic
relationships Murano client, not only will you benefit
from a saving in prospecting time, but
Breakdown
with over 8,000 you’ll also be contacting investors at the
opportune moment.
52%
North America
active allocators
MURANO ALLOCATOR
NETWORK
40,000 15,000 8,000
Allocators we Contacted in Ongoing
have identified the past relationships
MURANO INVESTOR TYPE MARKET SHARE
6% 12% 18% 9% 13% 5% 4% 11% 12%
Banks Consultants Wealth Managers Fo(H, PE)Fs Endowments Insurance RIA/IFA Family Offices Pension Funds
Foundations Companies
Trusts
London: +44 203 405 3370
New York: +1(212) 762 9669
www.muranoconnect.comBecause the
investors we
match with you
are interested, You’ll receive qualified referrals to
make contact with every week
you’ll only have
contact with
quality prospects
They have already expressed
an interest in your fund type.
Mention Murano and your
connection won’t come across
as a cold contact, but as
a warm referral.
Because the cold calling and It is very rare that either
pre-screening has been done party to an introductory
for you, you’ll be able to give call feels that it has been
more time and energy to these a waste of one or the
relevant prospects. others time
London: +44 203 405 3370
New York: +1(212) 762 9669
www.muranoconnect.comTransform your asset raising
Murano means
no more
Murano Murano makes
your sales process
cold calling reduces more efficient
your costs
London: +44 203 405 3370
New York: +1(212) 762 9669
www.muranoconnect.comThe first real step towards getting business comes from securing a
meeting.
Not only However, the prospecting cost of getting that first meeting can be very high.
are initial Even once that meeting is established, there is an estimated 5-9.5% chance of
getting an allocation, assuming the sales process is conducted correctly.
prospecting 90000
costs on 80000
Third Party Marketing
$80k per ticket
the increase 70000
Conferences
60000 $40k per ticket
5-9.5% chance
of allocation after
meeting (mean 6%) In-house Prospecting
50000
$25k per ticket
40000
Murano
30000
$15k per ticket
20000
10000
We are going
through DD with
6 investors because
0 of Murano
Prospecting 1st Meeting 2nd Meeting Follow Up Due Diligence
London: +44 203 405 3370
New York: +1(212) 762 9669
www.muranoconnect.comAVERAGE COST OF TICKET ACROSS ALL SALES STAGES
But traditional
sales methods
are also
$225,000
becoming less $145,000 $115,000 $85,000
effective
There’s always going
to be a cost, but Third Party
Conferences In-house Murano
Marketing
traditional methods
Many investors do not Can be a large Roadshows are Fund managers keep
aren’t proving to be have a favorable view time investment, expensive and take control of their own
of this model and prefer and it can be hard time to plan. People sales process.
successful. to speak directly with a to physically locate will often meet
manager. Other issues the key investors. because both are Costs less. Saves time.
include a lack of brand Business cards are fact finding and in Brings more success.
control and loss of often swapped out some cases ticking
territory. Most third party of politeness rather "meeting quota"
marketers simply than relevance. boxes.
arrange meetings and
are not embedded in the
fund.
London: +44 203 405 3370
New York: +1(212) 762 9669
www.muranoconnect.comUsing Murano
We aim for a
will reduce costs
for you and
40%+
meeting rate from each of our
provided investor matches.
increase your We track this closely with each
prospecting of our clients
success rate
Because the referrals we
provide are already qualified,
booking an initial meeting
is more likely.
Murano consistently delivers
well screened leads and
accurate information on
potential investors
London: +44 203 405 3370
New York: +1(212) 762 9669
www.muranoconnect.comTransform your asset raising
Murano means
no more
Murano
reduces
Murano makes
cold calling your costs your sales process
more efficient
London: +44 203 405 3370
New York: +1(212) 762 9669
www.muranoconnect.comTHE FUND MANAGER’S DILEMMA:
With Murano, The requirements of an allocator
might change on a monthly or
you’ll waste less quarterly basis. Additionally, the
average allocator only stays in
time and energy any one job role for around 3
years.
identifying So, Murano keeps talking to
the allocators. Our relationships
investors are active and therefore our
information is always relevant.
When you get your “match” it IDENTIFYING HAVING GETTING AN
will likely be the right timing for INVESTORS MEANINGFUL ALLOCATORS
both you and the allocator. DIALOGUES ATTENTION
Jan June
Not interested Ready to talk
Just because the allocator
The Murano team appears
wasn’t interested 6 months ago,
to instinctively know what doesn’t mean they won’t be
we do, where we are and interested today
where we want to get to
London: +44 203 405 3370
New York: +1(212) 762 9669
www.muranoconnect.comSo you’ll be able
to focus on
referrals from
our growing
network
Less time on wasted or out of date leads, Murano’s matchmaking quite simply will
allows in house sales people to focus more help a fund get noticed in an extremely
on meaningful dialogue and follow ups with competitive market
good quality referrals
We are constantly building on
We connect investors with only our relationships with our investor network.
a small number of suitable and interesting In many ways, investors
funds. This helps them with manager selection view us as a free consulting service
and reduces the traffic from unsuitable funds
Our relationships with investors are your
relationships
London: +44 203 405 3370
New York: +1(212) 762 9669
www.muranoconnect.comMeaning
that your asset
raising process
will hit new
heights
TIMING IS KEY
The right person for the right
product at the right time
Qualified intros based on tailored
questions unique to each of our
clients and their strategy.
We do not sell or represent I would recommend
any fund. It is up to the fund to Murano Systems to any
introduce themselves following fund looking
our matched referral. to optimize their sales
process
London: +44 203 405 3370
New York: +1(212) 762 9669
www.muranoconnect.comArrange a meeting with us now. London: +44 203 405 3370 New York: +1(212) 762 9669 ad@muranoconnect.com www.muranoconnect.com
Third Party Marketing Conferences
How the cost Number of tickets 4
Conference Cost
$10,000
is calculated % of AuM Size
Commission (Mgmt fee): 0.02
10% (Including Everything):
Business Cards
50
Commission (Perf fee.): 0.2 Collected:
Total Raise: $40,000,000 % which turns
10%
into meetings:
Commission: $320,000
Cost per allocation: $80,000.00 Cost per allocation: $40,000
With third party marketing the answer is a bit more nebulous. At the end of every conference, asset managers should look
The market is moving away from this model because of a lack at the relevant business cards and divide by the price of the
of success and agency issues. Many investors do not have a conference (planning, travelling to, and attending). This
favorable view of this model and prefer to speak directly with a obviously depends on the conference, but the price can range
fund. Other issues include a lack of brand control and loss of anywhere from around $500 to $2000 per relevant contact. So,
territory. Most third party marketers simply arrange meetings if the chance of an allocation is 1 in 20, then the conference
and are not embedded in the fund. route will cost around $40,000 per ticket (for the prospecting
alone).
Take a basic case where the marketer is getting commission on
20% of management and performance fees for a $100 million In this example, we estimate that the average conference will
fund. cost $10k (including travel, accommodation, entertaining, etc.)
and that the salesperson collected 50 business cards and was
If we assume that the marketer will look for tickets amounting to
able to yield about 5 meetings with a close ratio of 5%.
10% of the fund's size, that the goal is four tickets amounting to
a minimum of $40mln, and that the annual return is 10%, then: $10k ticket / [5% close ratio × (10% meeting rate × 50 total
business cards)]
(4 × $10mln ticket) × [(20% commission × 2% management fee)
+ (20% commission × 20% performance fee × 10% returns)] = $40k per ticket
= $320k into the pocket of the marketer, or $80k per ticket.
London: +44 203 405 3370
New York: +1(212) 762 9669
www.muranoconnect.comIn-house Prospecting Murano
How the cost Prospecting Meetings
1
Number of Reports (annual): 200
scheduled per week:
is calculated % of time allocated Meetings vs. Reports: 40%
30%
to prospecting:
Annualized (48 weeks): 48 Murano's Subscription: $60,000
Cost per meeting: $1,250
Cost per allocation: $25,000 Cost per allocation: $15,000
Prospecting for road shows is expensive. It can take weeks, We charge $60k per annum.
sometimes a month or more to plan a trip. Many trips are built
around one anchor meeting, and so some other meetings are If we take the example of a US Long/Short Equity fund
(assuming that the structure and terms are generic), and
secondary for both the allocator and the manager. People will
assume that Murano can provide 4 investor reports per week
meet not because there is a need, but because both are fact
for that fund (the number of investor reports for each fund
finding and in some cases ticking "meeting quota" boxes.
varies depending on a number of factors), and we also assume
For this metric, we calculated the salesperson’s salary that 40% of our introductions turn into a meeting (which is the
(including bonus), multiplied it by the amount spent on minimum we aim to achieve), then we get the following:
prospecting (30%), divided by the amount of meetings over the
4 investor reports per week over 50 weeks = ca. 200 reports p.a.,
year (48), and then divided it by a 5% close ratio
40% meeting rates = 80 meetings from investor reports,
= $25,000 per ticket 5% close rate from meetings = 4 tickets,
Divide 4 tickets by $60k
= $15,000 per ticket
London: +44 203 405 3370
New York: +1(212) 762 9669
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