How to Attract Elite Marketing Talent: Insights for Private Equity and Credit
The demand for experienced marketing and IR professionals in private credit and private equity has already outpaced supply – and the challenge is growing. Allocations to private markets continue to accelerate and new firms and strategies are adding to the competition for talent.
Consider this: According to Preqin, there were 1,080 private debt funds globally by the third quarter of 2023, compared to just 100 in 2011; private equity managers are already managing more than $8 trillion today and private credit is expected to account for $2.8 trillion by 2028.
The struggle is real, but there are ways to improve your odds…
CREATING ROLES THAT ATTRACT THE BEST
Elite candidates may not even consider themselves “on the market”—top performers are often well looked after at their current firms and it will take an exceptional offer to make them consider a move.
It’s not just about offering competitive pay—elite candidates already have that:
Long-term incentives like carried interest or (rarer and, therefore, better) GP equity, can be incredibly compelling and provide the added benefit of tying a coveted hire more tightly to your firm.
Expanding a role’s scope can also make it more attractive. Some may have an interest in capital markets work or syndication. Showing that you can help a candidate scratch that itch is a great way to get their attention.
Providing a seat at the highest table is also a factor for some. There is a strong rationale for IR heads to audit the IC, beyond the status it confers. When marketers can present the technical details of transactions well, they impress LPs and reduce the number of inquiries investment staff must handle.
Flexibility is another important factor. While it is once again the norm for investment professionals to be working at the office, rather than at home, does it have to be the same for capital raisers, who are on the road for much of the time anyway? Some of the most successful placements I’ve worked on involved remote or hybrid arrangements. In one case, a global head of marketing and IR worked out of San Francisco, despite the firm being headquartered in New York. It worked because both sides were willing to prioritize fit over logistics.
These are some of the most important general considerations but the context is key and our advice is always guided by the current situation and business objectives of our client.
SETTING UP FOR SUCCESS
Of course, landing the candidate you want is not the final step—it’s just the start—and you need to always be thinking about what comes next. I’ve seen a situation where a managing partner unilaterally hired a regional IR lead without involving (or informing) the global head. It was actually a great candidate but it undermined and unsettled the candidate’s boss. Another mistake I’ve seen that creates a bad impression is involving peers or even juniors in the selection process. On the surface, this might seem like a great way to be inclusive, but there are risks. How will the candidate feel if they are grilled about their track record and suitability by people that may be far less experienced than them and who would ultimately report to them? Some will take it in their stride but many others will feel disrespected.
BROADENING YOUR SEARCH PARAMETERS
Clients sometimes have unrealistic expectations about the caliber of candidate they will be able to attract with the offer they are prepared to make. In this competitive market, there are no unicorns: Elite candidates command elite packages and star performers will not work for peanuts. Once you’ve realized you can’t afford A-Rod, how do you adapt your strategy?
This is where what I call “athlete hires” come in—candidates with strong, transferable skills who may not have direct experience in your niche but possess the adaptability, drive, and foundational expertise to succeed. Especially if there is someone in your marketing team to mentor them, the right individual can quickly learn the nuances of your specific strategy and, given time, will build the productive investor relationships you need.
While this approach requires a willingness to invest in training and development, it often pays dividends by cultivating loyal, high-performing team members. By focusing on potential rather than a perfect match, firms can fill critical roles without compromising on long-term results.
The alternative is bringing in someone with less overall experience, but a decent track record in your strategy. Again, there is risk (will they be able to step up?) but, properly managed, this approach can yield excellent results.
Finally, it is worth remembering that good people sometimes get stuck with bad products. A candidate may appear to be on a dry spell, but the reality could be that they just had a product that nobody wanted. Look beyond the numbers to see if there is an overlooked talent waiting for a chance to excel.
FINAL THOUGHT
The competition for investor capital—and the people that can attract it—is only increasing. The firms that win will be the ones that truly appreciate this and invest in their talent strategy, accordingly.