Our thinking Quick reads A Christmas Caroline
 
Fundraising, investor relations and marketing
December 2021
3 min read

A Christmas Caroline

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As is the tradition for this time of year, at Christmas, our resident poet, Daniel Daines, has written and performed a festive poem.

Watch the Christmas Carol-themed video below:

This short Christmas tale describes Steve’s lack of progress with pursuing a relationship with Caroline, with his biggest hinderance boiling done to one thing. Communication.

It echoes problems we often see with how GPs communicate with LPs, many of whom fail to understand what LPs are really looking for in a fund manager.

When we spoke to a sample of GPs at the beginning of this year, as part of our online presence and branding research, over two thirds said they thought LPs only really care about historic performance. Our research, however, showed that LPs want to get to know the people behind the performance.

Investors are increasingly tracking GPs’ across digital platforms. Why? Over half of the LPs we surveyed think social media is a good way to get to know the personality of a fund manager. They are looking for more than just performance.

So why aren’t GPs letting their personality shine through in their marketing materials? After all, it would make them more appealing to LPs – which is the whole point of the materials…

Over 90% of fund managers already think they are doing everything they can to present their firm in an engaging and clear way,

They are a little like Steve from our poem.

As our Christmas ghost says:

“So much progress, but you regress to express that cherish in your chest”

The reality is that more than 8 in 10 investors wish fund managers would put more effort into making their materials more engaging and easier to read.

To achieve this, you need to go beyond historical performance and technical information. Instead, you should paint a clear picture of who you are, and what value you can bring, focusing on the aspects that no one else is able to say (truthfully).

Here, differentiation is key. Our research showed that nearly three-quarters of GPs believe that their firm has a recognisable brand and voice, but a similar percentage of LPs said that most fund managers look and sound the same.

The takeaway? What you present to the market should focus on areas of uniqueness, demonstrating how partnering with your firm can provide value that other managers are unable to access. This will help you to stand out from the crowd and embody a brand and voice that is distinctive.

In our poem, Steve had known Caroline for a long time, but their relationship didn’t transcend until he opened up; and that’s our advice to fund managers to think about for next year. Open up and communicate with investors, showing them who you truly are. Maybe you won’t fall in love, but you will build stronger, long-lasting relationships with your investors.

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