Are your portfolio managers too busy handling assets to set aside time to sell? Is performance down, and the need to make sure funds are being sold ever-growing? If you answered yes to either of these questions, it is time to hire a wholesaler.

There are two primary circumstances where it could be wise to hire a wholesaler.

Your People Have Reached Capacity

First, say your firm has reached peak operating capacity. All of your team members are working hard and everything is running smoothly. At that point, you look to the next step in your firm’s future: growth . But how can a firm hope to grow when all of its portfolio managers are forced to split their time between managing and selling assets?           

If it seems like every sales proposal requires all hands on deck, then it’s likely that neither the task of selling nor that of managing are receiving the attention they deserve. The solution could be hiring a wholesaler: in employing individuals specifically responsible for selling your fund to various channels, your firm can direct energy into moving larger volumes of assets while allowing managers to focus exclusively on handling their portfolios.

Dedicated Resources

The second circumstance is one in which your firm isn’t performing as well as it could be. As in the first scenario, it seems there just isn’t enough time in the day to get everything done. However, since performance is down, you understand that you need to be selling your fund more proactively—“not getting everything done” is simply not an option. This would be a good time to consider hiring a wholesaler. Then, your firm can devote its other resources to managing assets and trying to improve performance while the wholesaler proactively sells your fund to advisors and broker dealers.

In both cases, the purpose of hiring a wholesaler is to employ individuals who will work expressly toward the end of selling your fund. If your current team of employees can manage the task of selling without having to suspend, delay or relinquish any of their other duties, it is probably unnecessary to take this extra step.

For over 20 years we have advised companies on decisions that influence AUM growth. Check out our case studies.