BarCap’s Study Shows Marketing and Communications Spending Up

February 9th, 2010
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Contributed by: Lawrie Chandler, Alternative Decisions
Barclays Capital has published a study showing more investment in marketing and communications by hedge funds. The Report noted that managers see a heightened need for dedicated relationship-building with investors and more due diligence before any commitment of new funds. Key trends include additions to marketing personnel and better asset-gathering techniques.

Marketing and IR are now important functions for alternative fund managers. Additionally, sales processes are changing. The old ways are now old-fashioned.

Barclays’ “Raising the Game” asset-gathering best practices at hedge funds makes an interesting read. Improving marketing and its use lie at the centre of a changing model of asset raising.

Andrea Gentilini, Head of Strategic Consulting in Barclays Capital Prime Services division notes: “The dramatic changes in the hedge fund landscape caused by the market dislocations have forced managers to be more strategic in their asset raising practices and brand management. Managers can no longer let returns sell themselves - today’s investors want more communication, more due diligence and more transparency. Funds that focus on this have clearly been recognized by investors.”

Investment in marketing and Investor Relations personnel

Head-counts at small- and mid-sized alternative investment managers look set to increase proportionately more than at the largest firms. There is a clear trend of investing in new caliber of marketing and IR people. Traditional Rolodexes of contacts have become less important as managers seek individuals who can manage multiple leads and follow through to secure assets. Growing IR and marketing functions shows the importance these areas are now having in alternative investment management firms.

The chart shows the current and target size of IR/marketing departments across different sizes of alternative investment groups.

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Barclays Capital
Related People: Bob Diamond
Related Entities: Barclays Private Equity; C12 Capital Management LP; Barclays Capital Proprietary Trading
Related Article Tags: Multi-Strategy, Long Short, Equity, Debt and Global Macro Hedge Fund News; Hedge Fund Resources and Featured Partner News

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