Private Equity Fund Marketing

Educational Strategy to Private Equity Fund Marketing

The following is a part of our guide to private equity fund marketing tactics that we are building. These are strategies that fund managers should investigate further while working to raise capital for their funds. Before taking any of these actions please consult with your compliance and legal counsel for confirmation that you are able to use these methods to market your specific fund.  If you're interested in contacting potential private equity investors, why not look into the Private Equity Investor Directory?

An Educational Marketing Approach

In a survey of institutional investors, the high majority said that they are unwilling to invest in something that they do not understand. Therefore your job in marketing your fund is explaining the fundamental aspects of the fund. Your chances of successfully marketing your fund will rise significantly if you take a more educational and easy-to-understand approach.

One way to out-market your competitors is by moving away from the secretive approach, wherein, some fund managers purposely position their fund to appear "black box" and top secret. Instead, you could market your fund as a more open, transparent alternative. Explaining your investment process and strategy in a straight-forward way removes some of the shroud around alternative assets. With impending regulation over the private equity industry it makes sense to embrace transparency and it lays a solid foundation for a future general-limited partner relationship.

While your explanation can be simple, this does not mean that you or your fund are simple. You can still note that your fund uses advanced methods or models for managing its investments. This is a crucial point in simplifying your fund marketing technique: do not undervalue your company giving the investor the impression that you are behind the curve. If the investor wants to know more, most institutional and individual private equity investors are experienced enough to ask for more details which you can gradually offer. The trick in doing this right is striking a balance between providing enough detail and real meat that an institutional investor or consultant will gain some granularity without completely overwhelming the investors or wealth managers who may be less versed in common private equity fund portfolio management techniques.

If you're interested in connecting with a pool of thousands of potential private equity investors, check out the Private Equity Investor Directory.


Tags: private equity marketing, private equity fund marketing, private equity marketing materials, private equity fund marketing, marketing your fund, how to market a private equity fund

Link to This Resource: Private Equity Fund Marketing

http://privateequityblogger.com/2009/07/private-equity-fund-marketing.html