As investors demand more transparency and better terms,
asset managers are pouring money into internal fundraising
staff to better raise and keep capital.
Last year, alternative investment firms hired 20 percent
more marketing staff compared to 2015, according to new data
from Context Jensen
Partners, an alternatives-focused recruitment firm
specializing in capital raising executives. Real estate
managers showed the sharpest increase in hires, with marketing
talent soaring 239 percent, while private equity firms
increased such hires by 71 percent.
A number of firms have heretofore used third-party
private fund groups to raise capital, says CEO Sasha
Jensen. While that model will always be in place,
its going more out of fashion and individual funds are
hiring asset raisers in-house who have deep relationships with
This shift has been driven in part by investors, who are
requesting more information and more frequent communication
from fund managers. According to Jensen, managers need internal
marketing talent who can both fundraise and maintain on-going
communication with investors about a funds
Were seeing demand for an articulate, technical
marketing professional who can tackle these conversations with
investors from an investment analyst perspective rather than a
marketing perspective, she says.
The trend is most notable among real estate and private
equity firms as theyve seen an influx of capital in the
last few years, according to Jensen. While hedge funds, the
largest group tracked by the recruitment firm, accounted for
nearly half of the total hires last year, the number was down
from 2015. Because of the fee issue and all the other
uncertainty, there has been a pause on hiring in that
sector, Jensen says.
In total, the recruiter tracked 819 new hires in the U.S.
and the U.K., up from 681 in 2015. The bulk 613
occurred in the U.S., as American firms increased hiring by 63
percent. Still, British firms experienced slightly higher
year-over-year growth of 70 percent, driven by a record high of
92 appointments in the first quarter of 2016.