Why Hire A Marketing Firm For A 506(B)? 

July 10, 2023 | Marketing Intent

Some firms offering 506(b) private placements wonder why they would hire a marketing firm. While a 506(b) can be very limited on how you can market the offering, there are a number of ways you can stay in front of financial advisors with compliant marketing, and market your firm and expertise. 

We Collaborate with Compliance and Legal Teams  

At Marketing Intent, we collaborate with your compliance and legal teams to understand what they are comfortable with in marketing your 506(b). While there are (many!) rules to guide us, comfort levels range as do the “whys” behind a compliance or legal team’s stance on a marketing approach or messaging. Understanding the compliance/legal perspective and any sticking points helps us set the stage for a marketing campaign or materials that are going to make it through the compliance review process and become a reality.  

Start from the Ground Up 

While there are many limitations on marketing a 506(b) itself, you still have much to market and talk about with advisors. Many firms offering private placements are smaller and may not have brand recognition within financial advisors. That is priority #1. You must build trust with advisors. Raise brand awareness by attending conferences and sending pre- and post-conference emails and sharing posts on social media. No mention of your offering – just your firm, your asset class and key differentiators. 

Asset Class and Offering Type 

Next up is your asset class. How can you make sure advisors know what you invest in? You want them to think Firm Name = Asset Class. Describe your asset class in terms that are easy to understand and grasp. What lifestyle trends affect demand for your asset class – bring those to light. Then think about your offering type…what education can you provide advisors on how that structure works and how it benefits clients? While advisors are analytical, they still need education – and they still have the same 8-second attention span as the rest of us…so keep it jargon-free and short.