Q&A with Mark Tower, Head of Business Development & IR at Asset Management One USA

By Ed Rowley, November 2024

Mark Tower is a senior institutional sales and marketing professional with over 20 years of experience in the alternative investment industry. Mark joined Asset Management One USA Inc. (AMO USA) in September 2023 as Executive Director, Head of Business Development & Investor Relations. AMO USA is the US affiliate of Asset Management One, a global asset manager with $451 billion in AUM as of June 30, 2024.

Prior to joining AMO USA, Mark was Director of North American Business Development at Lyxor Asset Management Inc. where he was focused on developing and maintaining client relationships across all verticals in the United States and Canada from December 2015 until September 2023. Since 2004 he has also built and grown institutional sales for UBP Asset Management, Rock Maple Funds and Muirfield Capital Management.

Mark, thank you for taking the time to share your insights. Tell us about your current firm.

Asset Management One is a global asset management company based in Japan. It was established in October 2016 through the business integration of DIAM Asset Management, Mizuho Trust & Banking’s asset management department, Mizuho Asset Management and Shinko Asset Management.

Asset Management One’s US affiliate, AMO USA, manages $7.5 billion on a discretionary basis and $16.3 billion on a non-discretionary basis as of September 30, 2024. AMO USA has several investment functions including Quantitative Investment Strategies, Equity Investments and Fixed Income Investments.

What are some of the main things you’re focusing on right now?

Despite being a large organization, we are virtually unknown in the North American institutional marketplace. Therefore, my first priority is to raise awareness of AMO USA and our capabilities.

Two years ago we hired a new CIO for quantitative strategies, Dr. Anne-Sophie van Royen, to join our quant team in New York that had already been working together for many years. This was part of the legacy Mizuho Alternative Investment business. We launched our first dedicated quant strategy for the North American institutional marketplace in March and we believe it could be attractive to partners in the space.

What kinds of trends or opportunities are you seeing among investor segments or fund types?

Customization is the biggest trend we’ve seen over the past few years. Allocators do not want to be sold a product. They want to partner with firms who understand their goals and can collaborate with them to help customize a solution that fits best. This can be in the form of separate accounts, funds of one, or dedicated managed accounts.  

Allocators are also looking to simplify their lift by doing more with fewer partners. So any asset management firm that can help them achieve these goals could be in a better position versus selling a single fund offering.

What’s one of the biggest challenges related to raising capital and serving investors?

The biggest challenge for me, or anyone in this role, is being able to properly and efficiently get your message to the institutional marketplace and being accessible to institutional investors. This involves outreach via phone (less so these days) and email, roadshows and conferences. However, this is all a delicate balance of activity while also ensuring that you’re keeping in compliance with marketing rules.

What methods are working best to reach new investors?

There is no special sauce here. You need to read the industry publications, have a high-quality database, network with peers, collaborate with cap intro teams, and travel.

The last one is the most important – travel, travel, travel. Travel to events, travel to see high probability prospects, secure anchor meetings in a geography and build out a trip from there. Have multiple trips/cities being planned at once. Nothing replaces the in-person connection. Don’t get too comfortable working from home and blasting out emails. We are in New York, so I try and come in as much as possible for breakfast, lunch, coffee, cocktails, etc. with my network.

What products or services are most valuable in your role?

You need to have a quality CRM and investor database. These days many of these services can be integrated with each other, which will make your life easier and your business more efficient. I also prefer database companies that are engineered for salespeople and help provide content (webinars, podcasts, searches, news feeds, events, etc.) to help provide a more well-rounded user experience.

I also like to work with partners that can help us expand our messaging and visibility. This includes capital introduction teams, industry associations and focused conference organizations.

What are some of the things you've learned during your career?

Be patient, timing is everything. Also, you need to be authentic. A good salesperson can’t make up for a poor product or bad timing. However, a bad salesperson can lose you business. Don’t oversell or be too aggressive. Be helpful to the client, don’t just push a product. Help them with other searches or initiatives they are working on. Actually care about building a relationship, not a transaction.

What other trends or changes do you see happening?

I’m seeing a lot more demand for customization and separate accounts. That used to be only for the very large pension or sovereign wealth funds but now that has trickled down to smaller institutional investors and across verticals.