The global third party marketing (TPM) landscape shows the industry is responding to the changing needs of clients and markets with more relevant strategies and robust business models, according to Insight Discovery's second annual research study on TPM companies based in the UK, Europe and Asia.

A growing number of investment management companies are using TPMs- 206 TPM firms exist across both EMEA and APAC (51 in the UK, 108 EU, 30 APAC and 17 Middle East).

In a challenging investment environment for traditional asset managers, the focus of TPM firms is on building relevant, resilient and higher quality offerings, the report said, with greater regulatory certainty also increasingly important. 

In total, 70 market practitioners completed the survey for the report ‘Making third party marketing more mainstream', which was16 more than in 2021. 

Plus, the coverage now includes Asia Pacific, to add to responses from the UK, Continental Europe, South Africa and the Middle East. Within EMEA and APAC there are now over 200 firms, a significant increase compared to three years ago.

Key takeaways of survey and report:    
•    206 Third Party Marketing (TPM) firms operate in both EMEA and APAC (51 in UK, 108 EU, 30 APAC and 17* Middle East)
•    56% of TPM firms have between three and five investment management clients, with 33% servicing six or more clients
•    83% of TPM firms represent investment managers in multiple jurisdictions
•    Multi-family offices, single-family offices and pension funds are priority channels for TPM firms
•    24% of TPM firms believe their own reputation is a key differentiating factor to make them successful in this current environment
•    For 33% of TPM firms, reputation of an investment management company is also the most important consideration when they look to represent a client
•    50% of TPM firms are regulated in the countries where they market the investment strategies and/or funds of their clients, with 26% regulated in at least some of these markets 
•    49% of TPM firms have a retainer-plus-success fees model

"The momentum behind the evolution of TPM seems to be gaining ground globally," said, Stuart Alexander, UK chief executive at GemCap, a Platinum partner of the research. "When looking at the wider investment landscape, it is no surprise that appetite for and acceptance of this model is growing."

In particular, the greater efficiency of the TPM approach to engaging asset owners, along with a need for greater comfort among asset managers about who they partner with, is leading to TPM players being more diverse, well-resourced and better regulated.

"TPM firms appear to consider it more important to be regulated where they promote the investment strategies or funds of their clients," said Jeremy Albrecht, managing director, head of continental Europe, UK and Ireland, client coverage, at RBC Investor & Treasury Services, another Platinum partner.

In addition, although depth and size of network remain key drivers to help a TPM firm stand out, a solid reputation is significantly more important than 12 months ago, according to the inaugural survey. 

Further, no longer do the majority have a transaction mindset, plus there is more appetite to represent investment managers across asset classes. 

"Ultimately, based on the latest research findings, the TPM model is adapting to today's investment challenges," added Nigel Sillitoe, CEO and founder of Insight Discovery, the consulting firm which conducted the exclusive research.

This second annual survey again aims to provide actionable insights based on the trends, developments and characteristics of the TPM landscape.

The Gold Partners for this research project include: Active Fund Placement; Capital Strategies Partners; First Forte Consultancy; Garnell; and More Global Markets.