Hedge Fund Alert – Fintech Grows Marketer Network

in-the-news

2020-05-12

May 06, 2020. A company that helps third-party marketers connect with investors and network among themselves is growing rapidly. In the first quarter, New York-based Stonehaven added five small marketing shops that raise capital for alternative managers. It expects to add 5-12 more affiliates in the second quarter despite the upheaval wrought by the coronavirus pandemic. By the end of 2021, Stonehaven anticipates doubling the aggregate number of marketing contractors in its network, to about 100. The company also works extensively with investment bankers offering co-investment opportunities. While its affiliates are independent, Stonehaven takes cuts of their revenues in exchange for access to its online platform, known as Nexus, along with other services including licensing and document management. One of Stonehaven’s pitches is that Nexus allows its affiliates to cross-market with one another at a time when fund-raising has slowed for many hedge funds whose strategies are out of favor. Stonehaven boasts of at least 60 such cross-marketing relationships.

  • “It’s difficult for marketers to source new mandates now because everything is moving so fast and you can’t meet people in person,” founder David Frank said. “As a result, mandates are primarily being sourced through pre-existing relationships.”

Frank, a former investment banker, founded Stonehaven in 2001 as a capital-raising firm. It later evolved into a platform for marketing firms. Nexus includes a database of about 20,000 institutional investors and wealthy individuals, along with some 100,000 points of contact for those investors. The database is designed for “crowdsourcing,” allowing affiliates to collaborate on investor data.

  • “A lot of what we’re doing is building a community,” Frank said. “It’s not just technology.”

Among the affiliates who raise capital for hedge funds: 360 One Firm and Adara Capital, both based in New York; Black Pearl Advisors of Tampa; and Blue Water Strategy of Old Greenwich, Conn.

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About Stonehaven, LLC

Stonehaven is an industry leading global placement agent focused on hedge funds, private equity, real estate, venture capital, private placements, and long‐only strategies. Stonehaven’s platform serves as a nexus between select investment opportunities and the institutional investment community with a talented capital raising team and robust infrastructure. The Firm’s dynamic structure fosters an ever‐ evolving stable of distinctive managers to match the demand across the diverse investor community. Founded in 2001 by CEO David Frank, the Firm is entirely management owned, giving it complete independence to continue pursuing its entrepreneurial approach while maintaining the highest ethical and regulatory standards.

Dec 22, 2021

Jeffrey Appel, Founder & Managing Partner of JDA Funds Management Inc., Joins Stonehaven's Affiliate Platform

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Nov 24, 2021

Chris Yager CPA Joins as Stonehaven’s CFO and Partner

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Nov 22, 2021

Richard Conn Jr., Founder & Managing Partner of Eurasia Capital Group, Joins Stonehaven’s Affiliate Platform

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Nov 22, 2021

Cody Shannon, Managing Partner at Cody James Capital LLC, Joins Stonehaven Affiliate Platform

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Nov 15, 2021

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Nov 01, 2021

Brian Gaffney Joins as Stonehaven’s Head of Due Diligence, Mandate Management, and Partner

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Oct 01, 2021

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LATEST NEWS
  • Dec 22, 2021

    Jeffrey Appel, Founder & Managing Partner of JDA Funds Management Inc., Joins Stonehaven's Affiliate Platform

    read more
  • Nov 24, 2021

    Chris Yager CPA Joins as Stonehaven’s CFO and Partner

    read more
  • Nov 22, 2021

    Richard Conn Jr., Founder & Managing Partner of Eurasia Capital Group, Joins Stonehaven’s Affiliate Platform

    read more
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