Considerations for Marketing Private Equity Funds
The ability of a private equity fund’s manager to obtain capital commitments from investors is critical to the fund’s success. Unlike hedge funds which provide managers with the ability to reinvest non-withdrawing investors’ investment proceeds, private equity funds have relatively limited reinvestment ability and generally must distribute investment proceeds to its investors. Therefore, in order to keep making new investments, private equity fund managers must create and finance new funds every few years, which then requires new promotional materials for each new fund.