Dakota Funds Group was founded in 2006 and provides outsourced sales and marketing to investment management firms. In industry parlance, we are a third party marketer. However, that term can mean a lot of different things to a lot of different people. While we live in the world of third party marketing, we are far cry from just a hired gun.
Our seven person sales team and three person marketing, client service and support team act as if we are part of each firm we work for with providing transparency with detailed processes and procedures we follow. This approach has resulted in our team raising ~$20 billion for 15 different investment strategies since our founding.
The problem we see in the marketplace is that raising capital for any investment strategy is hard. It’s hard because it’s competitive. Strategies need to be sold (not bought) so it’s time consuming and investors are spread out all over the country. It’s an inefficient process, not to mention the growth of passive investing and its effect on fees across the industry.
The additional problem is hiring for and then and executing a sales plan is expensive and fraught with risk. Are the expectations of the firm and the sales people aligned? Do the sales people really know what they are doing? Do the sales people have the relationships and understanding of the marketplace? Can the sales people deal with the long sales cycles? Will the sales team provide transparency for the leaders of a firm into the sales process?
We have created a solution to solve many of the problems stated above. We have an existing, proven sales team; we have over 500 clients and our team has between 60-80 meetings a week. This eliminates sales execution risk and reduces the time it takes to get a strategy into marketplace. We have a detailed sales process that is documented, transparent and easy for our clients to understand and follow. When working with Dakota, sales and marketing is not the black box it normally is for leaders of investment firms.
We have deep relationships in the Private Bank, Broker Dealer, RIA/MFO and institutional consultant channels. While we are a third party marketer, we have taken a different approach than others and look much more like an extension of your firm where we provide greater transparency into the sales process and we have the results to prove it.
”By knowing the right people to put me in front of, Dakota has created an incredible asset. They have those long-standing relationships that we as a money manager need.”
~ Alan Breed, Portfolio Manager for Edgewood Management (Client since 2006)
Channels We Cover: We focus on four primary channels of distribution
Large RIAs who custody primarily at Schwab and Fidelity. We have over 865 close and connected relationships and we have 261 RIAs invested in one of our Partners strategies. We have 26 RIA firms invested in two or more of our strategies. The RIA channel is a highly discretionary channel, making it ideal for small mutual funds with short track records.
Banks and IBDs
We focus on the home office where teams of due diligence professionals evaluate and create select lists and models using mutual funds and separate accounts. We have our partners funds on 23 select lists and 14 models.
We focus on Morgan Stanley, UBS and Merrill Lynch’s top Financial Advisor teams, home-office due diligence teams and institutional consultants. We do not wholesale to the broad financial advisors as we believe the economics don’t make sense for no-load mutual funds.
For a number of our Clients, we cover all the institutional consultants and their outsourced CIO platforms who use mutual funds to create portfolios for their clients.
Penn Square Real Estate Group, a private equity FoF firm, is co-founded by Gui Costin
Edgewood Management becomes a client
Gui Costin sells his interest in Penn Square and forms Dakota Funds Group, retaining Edgewood as his first client
Current CAO, Tracy Rogers and President, Dan DiDomenico are among his first employees
In October, the Edgewood Growth Fund reaches $1B in AUM
In December, Hamlin Capital Management partners with Dakota to market its Equity Income Strategy
Tim Dolan join Dakota's Sales Team
In November, Thomson Horstmann & Bryant parters with Dakota to market its Micro Cap Strategy
Dakota builds out its sales and marketing platform to support more Clients
In February KKR partners with Dakota to market their Corporate Opportunities Fund and Alternative High Yield Fund
In March, Hamlin launches it's High Dividend Equity Fund
Borealis partners with Dakota to raise $350M for its private infrastructure strategy
Current CIO, Chris O'Grady joins Dakota
In February, the Edgewood Growth Fund reaches $2B in AUM
In December, Otter Creek Advisors partners with Dakota to launch its Long/Short Opportunity Fund
In June, City National Rochdale ("CNR") partners with Dakota to market its Emerging Markets Fund, which launched in December 2011
In October, the CNR's Emerging Markets Fund reaches $300 million in AUM
Andrew O'Shea and Ryan Creighton join Dakota's sales team
In February, the Edgewood Growth Fund reaches $3B in AUM
In February, Kellner Capital Management partners with Dakota to market its Merger Arbitrage strategy
In March, KKR reaches $60M AUM and closes their two open-ended Mutual Funds
Otter Creek Long/Short Opportunity Fund reaches $95M AUM in its first year
In September, CNR's Emerging Markets Fund reaches $600M in AUM
In April, the Edgewood Growth Fund reaches $4B in AUM
In May, Guinness Atkinson Asset Management partners with Dakota to market its London-based Global Innovators and Dividend Builder funds
In October, the Edgewood Growth Fund reaches $5B in AUM
Otter Creek Long/Short Opportunity Fund reaches $195M in AUM in its second year
In May, CNR's Emerging Markets Fund reaches $800M in AUM
In January, Reality Shares, Inc. partners with Dakota to market its dividend focused ETF strategies
In July, the Edgewood Growth Fund reaches $6B in AUM
In August, Shenkman Capital partners with Dakota to market their Short Duration Bond and Floating Rate Loan Strategies
In September, Weiss Multi-Strategy Advisors becomes a Dakota Client
CNR's Emerging Markets Fund reaches $1B in AUM
Dakota has raised $13.2 billion for its 12 partners
In March, Friess Associates partners with Dakota to market its Small Cap Growth strategy
In June, Levin Capital Strategies becomes a Dakota Client
In July, Cramer Rosenthal McGlynn becomes a Dakota Client