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Private Equity Investor Relations Specialists

History

According to the National Investor Relations Institute, investor relations is a “strategic management responsibility that integrates finance, communication, marketing, and securities law compliance to enable the most effective two-way communication between a company, the financial community, and other constituencies, which ultimately contributes to a company's securities achieving fair valuation.”

Once considered mere marketing or public relations specialists, the responsibilities of investor relations specialists have greatly expanded as a result of the financial crisis in the late 2000s. Financial markets are more complicated and riskier than they were in the past, and potential and current investors in PE funds increasingly request more information about the degree of exposure, risks, and potential return on their investments. Private equity managing partners have also recognized the competitive advantage of having a dedicated investor relations team that is continuously involved with investors—whether raising funds or not. “The increasing demands from limited partners for information and the need to put a compelling story together to fund raise successfully means that there has been increasing demand for people to join investor relations teams,” according to Private Equity Recruitment, a PE recruiter.