When it comes to private equity fundraising software, potential clients often start the conversation by inquiring, “How can I better target investors for my private equity fundraising?” That’s a common question but one that doesn’t have an easy answer.
It’s no surprise that GP-LP communications have quickly risen to the top of the priority list as far as fundraising goes. That shift in priorities has occurred primarily because these days, when fund managers have to reach a broader audience while prospecting, efficient and effective communication is a must. And improved targeting is the key.
But to appreciate today’s advanced targeting techniques, you have to understand private equity’s history in this area.
How Firms Operated Before Private Equity Fundraising Software
In the past, fund managers relied on highly manual processes to get their work done. Often, they used Excel spreadsheets or similar tools in conjunction with an email program of some kind to do a passable job of capturing contact information, tracking prospects’ activity, and communicating with them during fundraising.
Notice the use of “in conjunction with” rather than “integrated with.” That lack of connectivity was one of many significant failings of this approach.
This method wasn’t ideal, and it definitely wasn’t scalable. It allowed fund managers to get by at the time, but with today’s increased “need for speed” in an increasingly competitive industry, they are realizing that there has to be a better way.
There is, of course. Technology has improved dramatically over what was available just 5-10 years ago. Tools like our advanced CRM patform for private equity, are helping progressive firms operate more efficiently and scale their operations effortlessly.
Tools To Target Investors
As for prospect targeting specifically, Altvia Correspond Market Edition solves this major fundraising challenge. Market Edition is an email communication tool that is fully integrated with our platform.
Using the solution, fund managers can leverage their entire network and easily identify which prospects to target for their next fundraising cycle. No patchwork outreach. No “swivel chair automation.” Everything they need is in one system that serves as what we call a single source of truth.
For instance, let’s say your firm wants to announce their latest fundraise. Market Edition allows you to easily create contact “smart lists” directly from your records based on virtually any criteria of your choosing, including contact type or role, and contact location.
You can also use filters to do things like find fundraising prospects that passed on the previous fund but requested that you follow up with them during the next fundraise.
In short, you can easily identify the right prospects for your fundraising and quickly send an email blast that arrives to each recipient fully personalized.
It’s a great way to start this type of engagement, or any interaction, including things like planning a roadshow.
Targeting and Timing Are Everything
At the end of the day, fundraising is about connecting with the right people at the right time. Private equity fundraising software empowers you to do exactly that.
Plus, being highly targeted in your outreach means that you don’t bother people who wouldn’t be interested in a particular offering. That leaves them much more receptive to communications about funds that do interest them.