Emerging managers often face the challenge of growing their businesses on limited budgets, and Dakota’s Emerging Manager Growth Show is designed specifically to help. Hosted by Dakota’s CEO and Founder, Gui Costin, the show offers practical advice on how managers can do more with less.
Each episode focuses on a different institutional channel such as RIAs, pension funds, family offices, banks and broker-dealers or consultants, and provides actionable tips on scaling, best practices, and navigating industry trends. The goal is to equip emerging managers with the tools needed to thrive in a competitive landscape.
The Emerging Manager Growth Show focused on the RIA space, with Gui Costin and Tim Dolan sharing their insights on why this segment is particularly promising for emerging managers. They discussed the unique characteristics of RIAs, common misconceptions, and practical strategies for breaking into this competitive space. With shorter sales cycles and a growing appetite for differentiated strategies, RIAs present a golden opportunity for managers looking to make their mark.
In this article, we will cover the key takeaways from the Emerging Manager Growth Show. By the end of this, you’ll have actionable tips to help you navigate the RIA space and grow your business.
Key Takeaways
1. RIAs Are a High-Potential Channel
RIAs are known for their ability to move quickly, making them an ideal target for emerging managers. Unlike consultants or public pension funds, which often have multi-year sales cycles, RIAs can evaluate and allocate to strategies within a few months.
What makes RIAs unique?
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Sophisticated and nimble: Many RIAs have highly skilled investment committees that can evaluate innovative strategies quickly.
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Focus on differentiation: To stay competitive, RIAs seek out unique investment ideas to set themselves apart from their peers.
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Appetite for diverse strategies: RIAs allocate across various structures, including mutual funds, ETFs, separately managed accounts, and private alternatives like interval funds or limited partnerships.
2. Common Myths About RIAs
Gui and Tim addressed several misconceptions that may prevent emerging managers from effectively targeting the RIA channel:
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Myth: RIAs don’t need emerging managers. On the contrary, RIAs rely on innovative strategies to differentiate their offerings. Your outreach isn’t an annoyance—it’s an opportunity for them to expand their catalog of investment ideas.
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Myth: Focus only on large RIAs. Smaller RIAs, while managing less capital individually, often have high growth potential and can provide valuable introductions to larger networks.
3. Cold Outreach: The Backbone of RIA Engagement
As with any channel, cold outreach remains critical for breaking into the RIA space. Gui and Tim highlighted the importance of consistent email campaigns and thoughtful scheduling to maximize effectiveness.
Cold outreach tips:
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City scheduling: Target metro areas systematically, focusing on the largest RIAs in each market before working your way down the list.
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Craft clear emails: Use concise subject lines, a brief description of your strategy, and a specific call to action (e.g., “Can you meet on February 14 at 11 AM?”).
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Focus on volume and quality: Aim for 15–25 targeted emails per day, ensuring each message is relevant and personalized.
4. Leveraging Technology for Efficiency
Emerging managers often operate with limited resources, making technology an essential tool for scaling efforts. Gui emphasized the importance of using CRM systems to track meetings, follow-ups, and opportunities.
Benefits of a CRM:
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Track past activity and manage follow-ups.
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Run pipeline reports to identify high-priority opportunities.
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Ensure all conversations and meeting notes are documented for rapid recall.
Webinars are an impactful way for emerging managers to build trust, share insights, and engage multiple stakeholders simultaneously. These events also provide content that can be repurposed for follow-up emails, blogs, and marketing materials.
To maximize meeting productivity, Gui and Tim recommend asking two critical questions before leaving the room:
Two critical questions to ask during RIA meetings:
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“Does this strategy fit within your asset allocation program?”
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“Can you meet the final close on [specific date]?”
Your Path to RIA Channel Success
The Emerging Manager Growth Show provides a roadmap for engaging with RIAs effectively. By embracing cold outreach, leveraging CRM tools, and targeting the right RIAs, emerging managers can build meaningful relationships and achieve fundraising success. Gui and Tim’s advice underscores the importance of persistence, preparation, and focus in navigating this dynamic channel.
Whether you’re new to the RIA space or refining your approach, the strategies shared in this episode are designed to help you do more with less and position your firm for growth.
