Investor Relations

20INVESTOR RELATIONS1.4 PRIVATE EQUITY INVESTORRELATIONSThe stock market is far from being the only way to raise capital to build orgrow businesses. In this respect, private equity firms have always providedcompanies with alternative financing sources. These firms are raising fundsfrom investors (limited partners or “LPs”) who require just as much attentionas do portfolio managers investing in a listed company. The rapid expansionof the private equity market is generating heightened competition forcapital, thus prompting firms to develop proper Investor Relations programsin-house or outsource to specialized service providers.Their primary goals are tocreate visibility in the market, through effective media relations;develop the fund’s positioning and strategy;create marketing materials;market the fund to potential LPs;prequalify potential investors;process all documentation for investor transactions into funds;build and manage relationships between fund raisings with current andpotential LPs;track the fund’s performance and benchmark it against competitors;hold annual investor meetings;produce and distribute investor reporting.1.5 DEBT INVESTOR RELATIONSIssuers in the state-owned sectors and listed companies alike tap the internationalcapital markets by raising debt. For the latter, credit conditions may,at times, make it even cheaper than equity.