The marketing role within a private equity firm is a bit more constrained than other financial institutions such as investment banks or mutual fund companies. For one, private equity investors must be accredited investors, meaning they must meet certain thresholds for income ($200,000+ per year or net worth of $1 million or more), or be institutions.
Second, the main focus of marketing for private equity involves assisting the principals in raising new capital, and keeping current investors informed about the progress of the fund (investor relations).
Nevertheless, someone with an interest in finance and a strong background in marketing can find jobs at private equity firms. Marketing professionals help the firm manage their external image and attract capital through public relations activities, websites, articles, investor communications, and actively promoting the firm to influencers and intermediaries through events and networking. These marketing programs are designed to increase awareness of the firm and generate qualified deal flow.
PE marketing professionals will often be actively involved in the fundraising process. They must have experience and a comfort level in prospecting among high net worth investors and institutional decision-makers and making presentations. Most firms looking for marketing help will want someone with experience in the industry, along with a well-developed network of contacts among potential investors, family office executives and foundation investors.
Next time, we’ll look at the marketing role within venture capital firms.
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