Reverse solicitation refers to the situation where an investor approaches a fund manager without the manager having marketed their product or service to the investor.
I should add that this should not be regarded as a ‘marketing strategy’. While it is possible for a fund manager to accept investments through reverse solicitation, it carries a heightened risk.
To avoid any potential legal issues, it is essential for fund managers to document the investor's approach and prove that there was no prior marketing or contact. It is advisable to exercise utmost caution when using reverse solicitation, and it is recommended to limit it to only those investors who genuinely approach the fund manager.