PE funds hire in investor relations professionals

Private equity funds are said to be increasingly eager to employ investor relations professionals.

"Investor relations is a hot topic," says Guy Townsend, managing director of private equity-focused search firm Walker Hamill. "Investors have got smarter and more demanding, and at the same time fund raising has become a more sophisticated art form - you need to be much slicker now in how you go about doing it."

Townsend says an increasing number of funds now employ dedicated investor relations professionals charged with raising money, liaising with investors and general marketing duties. "Pulling a few investment partners off their day to day work just isn't good enough any more," he says.

The rising status of investor relations pros is reflected in the likes of Philip Bassett, head of marketing and investor liaison at Permira. Bassett was promoted to partner two years ago, despite not having risen through the investment ranks - traditionally a prerequisite for promotion.

Townsend says pay for investor relations professionals can be distinctly healthy, particularly during the fund raising period. "Most funds have a head of investor relations and two helpers," he says. "Helpers can expect to earn a base salary of anything from 60,000 to 120,000, plus carried interest and a bonus. In a normal year, the bonus might be anything from 25% to 50% of base salary, but in a fund raising year it's likely to be anything from 100% to 500%."

Investor relations professionals at PE funds typically have a background in accountancy, corporate finance, PR, or investor relations, says Townsend.