In the world of raising capital from RIAs, success doesn't happen overnight. It’s about playing the long game. Building relationships, refining your approach, and delivering value consistently.
As someone who has spent over 30 years in this industry, I’ve seen what works and what doesn’t. Consistency, above all else, is what separates those who make it from those who don’t.
At Dakota, we know this firsthand. Since 2006, we've been calling on RIAs and have raised over $35 billion by following a disciplined, consistent strategy.
In this article, we’ll dive into five essential strategies for successfully raising capital from RIAs. By the end, you’ll have a clear understanding of how to consistently build strong, long-term relationships with RIAs to achieve fundraising success.
1. Schwab and Fidelity won’t help you distribute
Schwab and Fidelity alone won’t get you in front of RIAs. While many RIAs use these custodial platforms to manage their client accounts, simply having your product listed there doesn’t mean they’ll choose it. These platforms are massive, with countless products vying for attention, and your offering can easily get lost in the crowd without direct outreach and relationship-building.
Access through these custodians is important, but it’s only part of the equation. To truly stand out, you need to actively engage RIAs and build relationships beyond just being available on their preferred platform.
2. RIA Due Diligence Analysts are as sophisticated as any institutional investor
Yes, RIA analysts are just as sophisticated as those in other channels. A common misconception is to view the RIA industry as “retail,” which we believe is a big mistake.
In general, due diligence analysts at RIAs are often just as knowledgeable, if not more so, particularly when it comes to evaluating and selecting managers. Most analysts are CFAs with years of experience. Given their ability to invest in almost anything, they are exposed to a handful of investment opportunities, which only deepens their expertise.
Additionally, there’s a lot of significant overlap in talent across different areas of finance. In any given city, analysts frequently move between RIAs, consultants, foundations, endowments, and family offices. Meaning the RIA analyst you're meeting with may have just come from a consultant or endowment, bringing a wealth of sophisticated experience with them.
You need to actively market to RIAs, build relationships, and offer compelling value propositions directly to them. This requires personal outreach, networking at conferences, direct communication, and perhaps leveraging your own distribution team.
3. RIA ETF exposures are a good start, but not close to the solution
While ETFs are a core component in many RIA portfolios, relying on them exclusively falls short of addressing the full spectrum of investment needs. You still need to be out in the fields making calls.
RIAs often turn to ETFs for their liquidity, low fees, and broad market exposure, making them a practical building block for many client portfolios. They’re an efficient way to gain passive exposure to markets and specific sectors, which is why they’re frequently used as part of a foundational strategy.
However, ETFs alone don’t fully meet the diverse goals that RIAs and their clients are aiming to achieve. RIAs often need more tailored solutions - whether it’s through alternative investments, active management, or custom products - that go beyond what ETFs can offer.
4. Cold email outreach should be your primary sales tactic
Cold email outreach should be a cornerstone of your sales strategy when targeting RIAs. Despite their packed schedules, RIAs are constantly on the lookout for new and innovative strategies that can help them retain clients and attract new ones.
RIA due diligence analysts, in particular, are often stretched thin, especially compared to their counterparts at banks, broker-dealers, or pension funds. With only about 20% of their time dedicated to researching new investment strategies, their bandwidth for discovery is limited.
This is where investment sales professionals come in. RIAs rely on sales outreach to bring fresh ideas to their attention. In fact, many RIAs will tell you that they first learned about a strategy because a salesperson reached out via a cold email or call.
So, while they may not have time for endless meetings, RIAs do want to hear from you. They view sales professionals as an extension of their research team, providing access to strategies they might not otherwise have the time to uncover on their own.
5. Guts, resolve, persistence is what it takes to have success with RIAs
Successfully engaging RIAs in today's competitive landscape takes more than just a strong product. It requires guts, resolve, and persistence to build relationships in a field where advisors are selective and often inundated with offers. These three traits combined form a resilient mindset capable of overcoming even the toughest hurdles.
Guts
Reaching out to RIAs can be daunting, but having the courage to make that call or send that email is crucial. Confidence in the value you offer and a willingness to face rejection sets you apart.
Resolve
RIAs often have established relationships and may resist new offerings. Staying focused, adapting your approach, and showing a deep understanding of their business is key to breaking through.
Persistence
Success with RIAs takes time. Building trust requires consistent follow-up and delivering value at every touchpoint, ensuring you stay on their radar as a reliable partner.
By combining the guts to make the first move, the resolve to stay focused, and the persistence to keep the relationship growing, you increase your chances of standing out and building long-term relationships with RIAs.
Dakota Marketplace for RIAs
Dakota is a financial, software, data and media company based in Philadelphia, PA. Dakota’s flagship product, Dakota Marketplace, is a database of Limited Partners (LPs), General Partners (GPs), Private Companies and Public Companies used by thousands of fundraising, deal, and investment teams worldwide to raise capital, source deals, track peers, and access comprehensive data, all in one global platform.
With the implementation of a filterable Form ADV Database, Dakota Marketplace offers fast access to Form ADV data, eliminating the need to wade through cumbersome government websites. The platform provides essential insights, including:
Detailed advisory business descriptions
- AUM breakdown by client type
- Custodian relationships and corresponding business volumes
- Ownership information
- Private fund reporting, and more
From our extensive database of over 22.000 RIAs, we’ve curated a list of over 5,979 wealth manager RIAs who are with Schwab and Fidelity. Of these, 361 are actively creating feeder funds. Unlike RIAs tied to broker-dealers like LPL or Wells Fargo, Schwab and Fidelity RIAs face fewer restrictions when allocating to alternatives, making them prime candidates for outreach.
Beyond sales efficiency, feeder funds streamline operations for alternative managers by reducing administrative burdens. Instead of managing multiple small accounts, you deal with a single LP, the feeder fund, leading to a more efficient and smoother investment process.
The value of Dakota Marketplace is clear: it not only gives you access to over 22,000 RIAs, but also enables you to focus on the most strategic opportunities… those actively using feeder funds and supported by accurate, real-time Form ADV data making your sales efforts more efficient and targeted.
To learn more about Dakota Marketplace for RIAs, book a demo today!
