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Private fund BD and IR professionals spend 25% of their working week on unplanned interactions with LPs

Business development and investor relations professionals at private funds are spending one quarter of their working weeks on unplanned interactions with limited partners (LPs), according to new research by Backstop Solutions.

The cloud-based productivity suite provider’s 2022 Alternative Investment Manager Productivity Survey of Investor Relations and Business Development Professionals highlights how unpredictable days and non-core tasks are impacting BD and IR professionals who are already strapped for time.

The study surveyed 103 BD/IR professionals from alternative asset management firms conducted from May 29 to June 29, 2022, with respondents coming from key segments such as private equity, hedge funds, venture capital, real estate, multi-strategy, private debt, and infrastructure/real assets managers.
According to the survey, unplanned LP interactions consume a significant portion of a BD/IR professional’s time, with the average respondent spending 35 hours each week interacting with LPs – more than one-third of that time being unplanned (13 hours). In other words, one quarter of respondents’ work weeks is likely to be taken up with impromptu and unanticipated meetings with investors.
When BD/IR professionals were asked how many hours they think they work on average, the result was 52. But when asked to add up the individual tasks that occupy their weeks, the total came out to 58, meaning that they may be working more than they think they are.
Some 62% of BD/IR professionals surveyed participate in both capital raising and retention. While technology is key to both roles, only 55% of BD/IR professionals are satisfied or very satisfied with their tech solutions, with nearly 80% feeling “there must be a better way of doing this” on a daily basis.
A total of 58% BD/IR professionals believe capital raising is more challenging in the current economic environment. Spending time on strategic responsibilities is more important than ever for BD/IR professionals, given the current market conditions.

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