APs on our platform represent all types of asset managers and companies in all asset classes and industries across a wide range of capital market activities.
We are an open architecture platform that allows our APs to directly negotiate market-driven commercial constructs with companies they represent. Our APs also leverage the Stonehaven team’s insights from 20+ years running our platform supporting mandates across all asset classes.
We attempt to match companies interested in hiring an AP on the platform by leveraging our extensive knowledge of each of our AP’s capabilities and interest in potential new mandates, as well as style fit and capacity availability. Each company on our platform has a lead AP that runs the mandate and coordinates the involvement of any other APs participating on the mandate. Companies must agree to commercial terms with the lead AP, and the AP can initiate working on the engagement once contracting and due diligence has been completed. After the mandate has been onboarded by the lead AP, participating APs can dialogue with the lead AP, agree on economics, implement a cross marketing agreement, and begin assisting in the distribution efforts based on the account coverage approved by the lead AP and the company.
Stonehaven plays an integral role in assisting APs structure and negotiate referral agreements with clients, leveraging extensive experience navigating the negotiations process over scores of agreements. APs start the mandate contracting process by completing a workflow in NEXUS that helps define the terms, and then our General Counsel’s team customizes the contract for the AP to preview and approve before presenting to the client. Stonehaven works intensively with external counsel to ensure that foundational language in our library of template agreements is comprehensive, fair, and reflects insights into current regulatory frameworks. APs retain ownership of decision making on commercial terms, and Stonehaven ensures that all compliance and other terms are addressed accordingly. This results in a significant reduction in legal expenses for our APs while strengthening the legal integrity and consistency of our revenue sharing agreements across this platform. This demonstrates an institutional approach to each prospective client while helping to mitigate commercial and regulatory risks inherent to maintaining a broad spectrum of contract formats and provisions.
Stonehaven’s dedicated mandate management team conducts comprehensive upfront and ongoing due diligence on all clients on the platform. Our diligence process is highly dynamic based on the type of mandate, and we embrace technology and workflows to efficiently manage the process. Clients must meet high institutional standards, properly present their information, and have a strong reputation in the marketplace.
The composition of a given sales group is dependent on the wants and desires of each company. All mandates have a lead AP, who acts as the primary point of contact between the company on one hand and Stonehaven and/or other APs on the other. The lead AP and company control the scope of the mandate, either limiting distribution activities to the lead AP only or opening the mandate to a broader group to expand reach. In all cases, the company only needs to maintain a single tri-party contract agreement between themselves, Stonehaven and the lead AP.
Stonehaven’s dedicated mandate management team conducts comprehensive upfront and ongoing due diligence on all clients on the platform. Our diligence process is highly dynamic based on the type of mandate, and we embrace technology and workflows to efficiently manage the process. Clients must meet high institutional standards, properly present their information, and have a strong reputation in the marketplace. As a broker-dealer, we also need to approve all marketing materials according to FINRA guidance.
We enable APs to provide pipeline, sales activity and transaction reporting leveraging our NEXUS technology platform. APs can filter their data based on any criteria and send it on any frequency they choose. Soon we also plan to launch a Client Portal which will enable real-time transparency into pipeline, sales activity and transaction data while also providing many other tools to streamline workflows.