Throughout 2009 we experienced a visible increase in the demand for IR professionals, fund raisers and placement agents. Our clients were keen to strengthen their IR teams and bring the right people and skills on board to manage the tougher and more demanding investor landscape.
For many GPs the IR 
team carries a wide range of responsibilities from fund raising to reporting as well as PR and marketing. These wide ranging elements of the role demand an almost endless list of skills; from extensive contacts and networks and great communication skills to high levels of attention to detail and accuracy. Thorough understanding of the industry and investors demands, ability to write reports to tight deadlines, preparing PPMs and marketing documents, delivering smooth running road-shows and high quality investor meetings … Oh and if they have liaised with PR agencies, can write a great press release and get the managing partner in to see a few Middle East families – well that would be great too! and the list goes on…
But there are really two distinctive functions we see within IR teams and before deciding to recruit, it is important to understand which you really need. Do you need to focus on existing investors? Or do you need to raise new funds? Or is it both? Can one person do it all? Generally the skills required for these two important tasks are different and you may need to decide which is your priority.
To manage existing relations, you need to look for someone with strong communication skills particularly written skills who is also numerate and can understand the investment process. They will spend a lot of time producing and updating reports and presentations. These candidates generally have excellent project management skills, are detail oriented and accurate. They may come from client services, marketing or RFP teams within asset managers, financial PR firms, project management teams at a placement agent or other IR teams.
When it comes to fund raisers, well the key is the deepness and relevance of their network, their understanding of the product and their flexibility to travel and/or be on the road most of the time. In addition to in-house fund raisers, we generally find these people in placement agents, institutional sales teams within banks and asset managers and sometimes private bankers.
And, they have to be someone you trust, want to work with and are happy spending hours in an airport lounge with. You will probably spend more time with the lead members of this team than with any individual on your investment team.
Today more than ever an IR team has become a core asset. Successful teams are more structured, reporting more detailed and contact with investors more regular. Funds are hiring more experienced fund raisers, people with a distinctive track record and network fully relevant to their strategy. In 2009, over 20% of PER placements were IR professionals from associates to principals, and signs indicate that the trend will continue well into 2010.
If you feel your IR or fund raising team needs reinforcement or you are building one for the first time, don’t hesitate to give us a call.
Debbie Eidelman - PER
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