Maximising client reach through technology

Chances are, you’ve heard of Pareto’s principle – the idea that 80% of outcomes come from 20% of causes. Well, this principle can also apply to investments in private markets, where firms find that 80% of capital deployed originates from just 20% of investors in their network. 

Focusing your attention on these regular investors makes sense if you’re resource constrained. However, it’s important to find ways to engage with the other 80% of your audience who may not invest with you as regularly. This can be challenging to achieve through a traditional approach to outreach, particularly if you’re unable to increase your headcount due to the cost implications that come with building out a larger team. 

This is where the strategic use of technology comes in. The right digital tools will enable firms to build an efficient, automated investment process that provides investors with the personalised service they expect while remaining operationally scalable.

So, how can firms achieve this? We’re currently working with one of the UK’s leading placement agents to address this very challenge. Here’s how we’re helping them.

Distributing deals more effectively

Our client now has access to a Delio-powered private markets platform that streamlines their deal origination, distribution, transaction management, and reporting. The platform’s distribution tools enable the placement agent to target investors using a range of clearly defined classifications. This means that they can engage all of their audience at the click of a button, create specific groups based on data such as an individual’s regulatory profile, or focus on individual investors based on clearly defined criteria.

As a result, the placement agent is able to provide a proactive outreach strategy, which appears bespoke and customised, while it’s actually the platform that is doing the ‘heavy lifting’. In addition, this approach means that advisors aren’t having to spend lots of time offering this improved service to all investors, meaning they can focus their attention elsewhere, such as driving commercial conversations forward.

If the information sent to an investor sparks their interest, highly configurable and automated workflows mean that they can progress through the investment lifecycle quicker and with less ‘hands on’ effort from a relationship manager. The platform digitally documents each step and schedules follow-up actions, so advisers can spend less time managing administrative processes and focus on supporting the client at key stages of the process. With the platform recording every detail of the transaction in a centralised digital hub, internal teams also have the benefit of a holistic and transparent view of the client relationship at any time. 

From an investor experience perspective, the use of Delio’s technology means that the placement agent can offer their clients 24/7 access to deal flow, wherever and whenever they want to access it. Unlike traditional communication models, investors don’t need to rely on the availability of advisors to schedule meetings, meaning that they can take a more proactive outlook to deploying their capital while also enjoying a highly personalised service.

Highly personalised, mass communication

The Delio platform is continuously collecting data on investors. From digitising the onboarding process to identifying which deals investors are engaging with, it enables outreach activity to be scaled to a wider audience while still remaining highly personalised. In real terms, this could mean that you are able to promote a deal to investors that have expressed an interest in businesses operating in a particular sector, or use the platform’s analytics to target investors that have been more active than usual and may be looking to invest in the near future. 

Although it’s not face-to-face interaction, using a data-led digital communication strategy can still help to strengthen investor relationships. By demonstrating your understanding of their interests and promoting relevant deals, you can drive better engagement and reduce the risk of investors ‘switching off’ from your offering.

This approach was highlighted by a Delio client that has been using their platform for over a year. “Some people don’t necessarily equate technology with achieving these personal connections, but the fact that we can use Delio’s technology to manage all aspects of our investment process saves us significant amounts of time. This can then be reinvested into speaking with investors, engaging with our portfolio businesses, and working smarter.”

Enabling investors to deploy capital more efficiently

Investors that want to commit to a deal through the Delio Core platform will find it’s a simple, straightforward process. With all the necessary information, documents, and NDAs presented through the platform, committing to an investment takes just a few clicks and e-signatures. 

Gone are the days of needing to schedule a meeting with an advisor, coordinating diaries and completing reams of paperwork. With investors being empowered to make decisions more decisively, they are also more likely to become more active over time. It’s an excellent way to re-engage your network.

‘Compliant-by-design’ deal distribution

Delio Core’s highly configurable, ‘compliant-by-design’ workflows means that the placement agent was able to have complete confidence that their deals would only ever be distributed to suitable investors based on regulatory criteria that they have defined. By digitising what has traditionally been time-consuming and resource intensive process, the firm can focus their team’s attention on cultivating valuable relationships instead. 

Thanks to their digitised onboarding process, investor preferences, regulatory classifications and other information is collected before investors can access deal flow via the platform. This ensures that the process of distributing deals to investors is robustly managed from day one and mitigates against the risk of human error. 

In addition, Delio Core generates a digital audit trail to capture real-time evidence of compliance with regulatory requirements, providing extra peace of mind and eliminating the need for manual tracking of regulatory milestones.

Presenting deals as part of a holistic brand experience

It was very important for our client to build recognition of their brand and deliver a seamless client experience, especially when it comes to individuals who may not be regular investors. 

As Delio Core can be completely white-labelled, the platform seamlessly incorporates their brand identity and provides investors with a slick and intuitive digital experience. The platform serves as the primary channel of communication between the placement agent and their investors, operating as a 24/7 shop window for their latest investment opportunities. 

The result

Through their Delio-powered platform, the placement agent has been able to engage more effectively with a previously untapped pool of investors, which historically were not a priority. This has generated additional revenue streams, with very little expense and without the need to increase their headcount.

Within months of deploying our technology, the firm is already projecting that they will generate an additional £2m in revenue through a combination of factors, including improved client engagement, better promotion of fund information, and data insights being more readily available. 

Want to find out how we can do the same for your firm? Get in touch to arrange a demo.