506(b) Private placement

Navigating the Marketing Maze of Private Placement Offerings 

Launching a private placement offering, especially under Rule 506(b), presents a unique set of challenges for alternative investment sponsors. The intricacies of compliance regulations often create a sense of limitation, leading many to believe that marketing their product is next to impossible. However, the reality is far from it. Despite the constraints, there are numerous compliant and creative strategies to market your offering effectively. Here’s how you can turn these challenges into opportunities for meaningful engagement with advisors and accredited investors. 

Understanding Your Audience 

At the heart of any successful marketing strategy is a deep understanding of your audience. For private placements, this means accredited investors and the advisors who serve them. Remember, in the world of 506(b) offerings, the end investor is typically one step removed. Focus on communicating with advisors who have direct relationships with potential investors, to leverage these connections and introduce your offering in a compliant manner. 

The Power of an Offering Brochure 

A well-crafted offering brochure is an indispensable tool in your marketing arsenal. It serves as a comprehensive introduction to your investment philosophy, the details of your offering, and the unique value proposition of your firm. This document allows advisors and investors to understand the essence of what you’re offering, making it easier for them to assess its alignment with their investment goals and philosophies. At firms with a more conservative compliance stance, we’ve even seen the “offering” taken out of the offering brochure to simply provide background on the firm, its track record, and investment philosophy to help engage advisors.  

Leveraging Fact Sheets and Educational Emails 

Fact sheets are another essential piece of the puzzle, providing a snapshot of your offering’s terms and investment process. Fact sheets should distill complex information into an easily digestible format, facilitating a clearer understanding of how to engage with your offering. While the essence is providing the “facts,” your fact sheet should also highlight your firm’s story and track record.  

Beyond the specifics of your product, educational emails offer a broader platform to connect with your audience. By focusing on the asset class, industry trends, demand drivers, and the story behind your offering, you can engage advisors and investors on a more fundamental level. This approach not only educates them about the market you’re operating in but also positions your firm as a thought leader in the space. 

The Art of Compliant Creativity 

The key to marketing a 506(b) offering lies in navigating the compliance landscape with creativity. It’s about understanding the rules of engagement and then finding innovative ways to communicate your value proposition within those boundaries. This might mean developing content that educates rather than directly sells, or leveraging existing relationships in a manner that respects the regulations governing private placements. 

Marketing Intent: Your Guide Through the Maze 

Feeling overwhelmed by the compliance complexities of marketing your private placement offering? Marketing Intent specializes in helping alternative investment sponsors craft and execute marketing strategies that are not only compliant but also compelling – for all kinds of offerings, including 506(b) and 506(c) offerings. Our expertise lies in understanding the unique challenges of the alternative investment space and translating that into effective marketing solutions. 

Whether you’re struggling to articulate your investment philosophy, differentiate your firm, or simply get the word out about your offering, our team is here to help. We can assist in writing and designing offering brochures, fact sheets, and educational email campaigns that resonate with your target audience while navigating the regulatory landscape with confidence. 

If you’re ready to explore the possibilities of creative and compliant marketing for your private placement offering, reach out to Marketing Intent. Together, we can turn the maze of regulations into a roadmap for success. 

506(b) 506(c) Private placement

Why Hire a Marketing Firm for a 506(b)? 

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.

Marketing Intent is skilled at helping firms offering 506(b) offerings market in collaboration with compliance and legal teams…and helping asset managers gain the brand awareness that starts sales conversations. Contact us to learn more about how we can help your firm.  

506(b) 506(c) Private placement

Alternative Investments: From Friends & Family to Reg D Private Placements

Let’s talk about ways to help your offering stand out with financial advisors, how to sync your sales and marketing efforts and how your PPM can help develop advisors’ trust.

Simplicity and a Good Story

Standing out among the growing number of alternative investment offerings can be difficult. We see many firms dive deep into the jargon of their asset classes to try to explain investment offerings to advisors. And their eyes glaze over.  Simplicity and a good story is the key to helping advisors quickly grasp what you’re doing and why.

For example:

  • Industrial buildings = Amazon packages
  • Farmland = the need for food
  • Residential = solving the housing crisis

Sync Marketing & Sales

Once you have your simple story down, it’s time to make sure that your marketing and sales efforts are synced up. I know this can be a sensitive topic for people, because of the battle that marketing and sales can have. 

It is really important for us to re-think marketing and sales and how they can help each other be successful with a feedback loop. Whether it’s sales getting feedback on what’s resonating with advisors, what a common objection is, or how something should be explained, marketing can help answer those questions for advisors and help engage them for the sales team. 

This can often result in more warm leads and conversations that lead to capital being raised. 

Use Your PPM to Build Trust

Once those conversations start leading to capital raising, the next most important thing to do is develop trust with advisors. We don’t often think of the PPM as being a marketing tool, but it needs to be updated continually. Especially depending on how rigid your law firm is on what you can say with or without it being updated in the PPM. For example, if you’ve acquired properties and you haven’t updated your PPM, you may not be able to discuss them with advisors. That looks like a communication gap from their standpoint, versus you being proactive and letting them know what’s happening with your offering. 

Updating your PPM can provide advisors with what they need to give their clients updates –and to continue to present your offering and raise capital for it. Get ahead of the curve and think about how you can regularly update your PPM so you can get updates out to advisors and continue to develop their trust.

To recap…

  • Simplify your sales story. Think about your asset class and what it means to advisors and how it translates –to sync up your marketing and sales efforts, because it is really important for them to have open communication and have a feedback loop. 
  • Plan for your PPM to be updated regularly. This enables you to get information out to advisors quickly, which helps develop trust.


If you need help maximizing your marketing to raise capital, contact Marketing Intent. We have deep experience in the financial services and the alternative investments space.