Old-school salespeople may rely on gut instinct when sussing out prospects, but we now live in a big world where it is not always practical for a small team (or even one individual) to keep up a rapport with thousands of potential clients. “Many hedge funds do not think enough about their communications strategy but there is a whole science behind building long term relationships,” says Alok Misra, CEO at Navatar, the investor relations platform used by alternative asset managers. Marketing and investor relations teams need to categorise contacts into an investor intelligence centre; use targeted segmentation to prioritise schedules for making contact; keep abreast of allocator news, changing staff and strategy preferences, and use all of this and historical allocation patterns to inform outreach, while also maintaining controls on the security of confidential data and documents. They may need to do all of this ‘24/7’, anywhere on the planet.
Categorising investors: How to build your very own LP intelligence centre
KAP Group co-founder and CEO, Jennifer Aleman Hutter, advises fund managers on communications and marketing, and was a placement agent in her former job at Credit Suisse. “It is not cost effective for all managers to build an internal IR team right away. Outsourcing the IR function can free up time for the team to focus on investing,” says Hutter. That said, many KAP clients do have an in-house IR function that dovetails with support from KAP Group.