2023 was a challenging year for investor relations (IR) fundraising efforts, with threats to capital consolidation in the market and a structural shift to secondaries. Despite this, fundraising is expected to pick up in 2024 as interest rate curves flatten and new pools of capital enter through the private wealth segment.
According to Preqin’s report, The Future of Alternatives in 2027, fundraising is expected to reach an astounding $1.6 trillion by 2027, and will likely continue to pick up in coming years. The private wealth market — which consists of organizations like family offices, wealth managers, and private banks — is expected to take a bigger portion of that fundraising statistic.
The growth of the private wealth market and its impact on business is becoming more and more apparent. For example, market leader Blackstone reported 10 years ago that none of its assets under management (AUM) were from private wealth. Now, however, 20% of its AUM comes from private wealth.
To keep up with the market, your IR team needs to implement streamlined IR fundraising efforts using strategic data. In this article, we’ll detail findings from our recent webinar, Fundraising in 2024: Harnessing investor insights through DealCloud DataCortex and Preqin. We’ll also highlight how the Preqin integration within DealCloud DataCortex allows your IR professionals to move more efficiently towards their fundraising goals.
Automate cumbersome data entry
When it comes to IR fundraising efforts, your IR professionals have no time to waste on manual data entry. With DealCloud DataCortex, your professionals can leverage DealCloud’s flexible API to supplement and enrich their proprietary data with third-party market data — all directly in your firm’s relationship and pipeline management system.
DealCloud further supports IR teams by building strategic partnerships with companies like Preqin that empower financial professionals who invest in or allocate to alternatives. IR teams can now search through and leverage Preqin’s essential data and insights directly within their DealCloud lender dashboards. This wholly eliminates the need to switch screens or manually upload data, so dealmakers can work more efficiently.
By leveraging the DealCloud and Preqin integration, your IR professionals can automatically enrich and validate your firm’s proprietary data and reduce administrative burden. Your professionals can also:
- Gain a deeper understanding of institutional investor appetites
- Uncover fundraising trends and niche opportunities
- Strengthen your marketing pipelines
- Leverage enhanced limited partner discovery and tracking
- Access exclusive investor insights
- Streamline your due diligence processes
Alex Bajdechi, Client Development Director at DealCloud, discusses the collaboration between DealCloud DataCortex and Preqin
Enrich new and existing relationships
Private equity investment teams continually revisit existing lender networks in pursuit of the best rates for financing on their investments. But many teams fail to realize that their best avenues already exist within their firm’s network.
Through the DealCloud and Preqin integration, your IR team can easily populate its DealCloud lender dashboards with Preqin data, including:
- Curated investor profiles
- Investment criteria and allocations
- Firm information
- Updated contact details
Bringing these insights to the fingertips of investors lets your team curate its approach using real-time data and actionable data. For example, if Preqin’s data shows that a top-performing general partner (GP) is going to be raising their next fund in the first quarter of 2024, you can set a reminder within DealCloud to reach out to the GP at the most optimal time for a successful conversation.
Timely, actionable insights like these let your professionals reconnect with existing relationships in highly opportune, goal-oriented ways. Consequently, organizations can accelerate their investment decision-making and strengthen their relationship-building.
Learn more about leveraging the Preqin integration within DealCloud’s lender coverage dashboard
Implement third-party data integrations at your firm
IR teams need modern, streamlined pipeline and relationship management systems that house proprietary and third-party data. Without these systems, your professionals will struggle to optimize IR fundraising efforts at your firm.
“Around 4 years ago, we moved to DealCloud across the investment and investor relations teams, with the latter spearheading the use of greater data to build better connections with investors. The IR team uses it to monitor our existing and prospect relationships, build and develop our pipeline across all live fundraising processes, launch and organize our investor events, and manage our co-investments jointly led by the IR and deal teams.
It is helpful to have a ‘single source of truth’ in this way, because it provides the transparency for business decisions to be made, [helps us] coordinate efforts more efficiently, and allows us to be more effective with how we use the time of our investment professionals for fundraising purposes.”
Watch the recording of our recent webinar to learn more about how DealCloud and Preqin can support your IR professionals:
Fundraising in 2024: Harnessing investor insights through DealCloud DataCortex and Preqin.