Jensen Partners — Q2 2022 Newsletter
In previous newsletters, we've discussed the growing importance of specialization across the marketing function. It wasn't enough for marketers to just have the right investor relationships — they also needed to understand and communicate the ins and outs of a particular investment strategy.
This trend towards specialization has only accelerated as the alternative investment industry has grown in scope and scale. Whereas many alts firms used to focus on a specific strategy and structure — say a growth equity strategy in a PE structure or a distressed credit strategy in a hedge fund structure — today's alts giants have a growing menu of options available for investors as they move towards a one-stop-shop model. The increased demand for marketing specialists among insurance firms and investment consultants in recent months is further evidence of this development.
On the insurance front, several big PE firms have been buying up insurers to help boost their assets and diversify their investor base. Just in the past couple of years, Apollo Global Management announced an $11 billion merger with Athene Holding Ltd., Blackstone agreed to acquire Allstate Life Insurance Co. for $3 billion, and KKR bought a 60% stake in Global Atlantic for more than $4 billion. Now each of these PE firms is committed to growing their insurance businesses, which means finding insurance solutions specialists with a direct line to the CIOs at the insurance firms. Many of these specialists have either come directly from an insurance firm or have learned the technical skill set required to raise assets from insurance firms. We are still in the early days of the 'insurance marketing specialist,' but given the size of recent transactions, we anticipate this will become a big part of the hiring market in the months and years ahead.
On the investment consultant front, we have observed a stark increase in the number of alts firms now hiring for 'consultant relations' roles where the marketer would be responsible for liaising with investment consultants rather than investors directly. It's no secret the immense influence that investment consultants can have as gatekeepers between investors and fund managers, especially in the U.S. and Europe. Many institutional investors rely on these consultants for due diligence on the sprawling universe of funds and managers, with some investors outsourcing their allocation decisions to these consultants entirely. Recognizing this trend, many alts firms have responded by hiring marketers who can help improve their relationships with these consultants and thereby attract more investor capital. Some of these marketers are being recruited directly from the consultants they would be expected to work with, while other marketers are transitioning from move investor-focused roles. Like with the 'insurance marketing specialist,' this is still an evolving part of the talent market as alts firms compete to reconfigure their marketing operation to meet the current realities of fundraising.
We will continue to track and report on each of these trends in the alternative investment landscape in future newsletters. In the meantime, here are a few of the other highlights from our Q2 newsletter:
- We tracked 845 moves in the quarter, a modest decrease from Q1 but an increase of nearly 50% compared to last year's period.
- More than half of these moves were recorded as diverse, with 327 female marketing professionals and 109 male BIPOC professionals switching roles in Q2.
- There also continues to be strong demand for DEI-focused mandates. In fact, 17 of the 35 active searches the Jensen Partners team is working on focus on recruiting candidates from underrepresented backgrounds.
Please feel free to get in touch with any questions about our data or industry observations. We'd love to chat!
Sincerely,
Sasha Jensen
News Corner
Here is a selection of recent articles and studies about hiring, marketing and fundraising in the alternative investment industry:
Institutional Investor: Asset Management Compensation Takes a Hit — And Headcount Could Be Next
Institutional Investor: In a Crowded Fundraising Environment, Buyout Funds Are Squeezing Out Growth Equity
Institutional Investor: Nonprofits Are Flocking to OCIOs at a Higher Rate Than Ever
New Private Markets: Impact 30: New faces in the upper echelons of impact
New Private Markets: When it comes to DEI, investors are right to choose carrot over stick
Pensions & Investments: Alts managers plunge into ESG transformation
Pensions & Investments: Fundraising for private equity, real estate slowing dramatically — Preqin reports
Pensions & Investments: Managers finding tougher fundraising environment
PitchBook: Global Markets Snapshot
PitchBook: PE fundraising capital on pace for record year despite wavering global markets
PitchBook: Q&A: Fundraising adviser explores debt capital-raising trends in 2022
Private Equity International: Crowded fundraising backdrop sees 40% decline in funds closed
Private Equity International: Fundraising sees $122bn drop in the first half of 2022
Private Equity International: It's showtime for financial services specialists
Private Equity International: Fundraising Frenzy: Mass zombification unlikely, but alarm bells are ringing
Private Equity International: Fundraising Frenzy: Talent and resources feel the crunch
Private Equity International: Fundraising Frenzy: Today's environment could drive GPs toward alternative capital sources
Private Equity International: Fundraising Frenzy: Why 2023 won't be any less manic for PE fundraising
Private Equity International: Why LPs must prioritise talent management
Q2 Data Highlights
Here are a few of the most interesting data points from Q2 2022:
❖ In Q2 2022, we tracked 845 moves, a 16.58% decrease from Q1 2022 and a 48.25% increase from the 570 moves in Q2 2021. Although there has been a 16.58% decrease, this is the tenth straight quarter that hiring activity has surpassed 400 moves.
❖ The biggest movers and shakers for Q2 included: Private Equity firms (184 moves), Multi-Asset (149 moves), Credit (119 moves), and Hedge Funds (121 moves). These are also the four sectors that generated the most hiring activity in Q4 2021 and Q1 2022 as well: Private Equity firms (145 moves in Q4 2021 and 241 moves in Q1 2022), Multi-Asset firms (134 in Q4 2021 and 214 in Q1 2022), Credit (83 in Q4 2021 and 168 in Q1 2022), and Hedge Funds (71 in Q4 2021 and 138 Q1 2022).
❖ Unlike in Q1 2022, we observe that the number of hires decreased for the majority of the firms in Q2 2022 when compared to Q1 2022: Multi-Asset, which had 149 moves (or -65 from Q1, a 30.37% decrease), followed by Private Equity with 184 moves (or -57 from Q1, a 23.65% decrease), Credit with 119 moves (-49, a 29.17% decrease), Hedge Funds with 121 moves (-17, a 12.32% decrease), Secondaries with 33 moves (-5, 13.16% decrease), and Wealth Management with 59 moves (-1, a 1.67% decrease). The two sectors that experienced an increase were Infrastructure, which had 31 moves (+11, or a 55.00% increase), and Private Fund Group, with 86 moves (+11, or 14.67% increase). Of the two more niche sectors, Fund of Funds had not experienced a change in hiring since Q1, whereas FinTech/Venture Capital experienced a decrease of 2 new hires, compared to 4 hires in Q1 2022.
❖ However, when compared to Q2 2021, the majority of the sectors experienced a boon in hiring. According to our data Infrastructure is leading the way with a 287.50% increase (or +23 moves from Q2 2021), followed by Credit +250.00% (or +85), Real Estate +178.95% (or +34), Private Equity +71.96% (or +77), Hedge Fund +40.70% (or +35), Private Fund Group +32.31% (or +21), and Wealth Management +20.41% (or +10). Our data shows that only the following three sectors witnessed a slump compared to Q2 2021, with Fund of Funds experiencing a 100.00% decrease (or -14), followed by Multi-Asset with a 2.61% decrease (or -4). As with previous quarters, we continue to also track hiring activity in the more niche sectors of the alternative investment space. In this category, the number of hires decreased for FinTech/Venture Capital by 33.33% (or -1), whereas it increased for Secondaries by 17.86% (or +5).
❖ Compared to Q1 2022, we observed a significant slump in marketing hires across all the regions we track. Specifically, in the second quarter of 2022, NORAM had 536 moves (or -94 moves, a 14.92% decrease), the UK had 159 moves (-25, a 13.59% decrease), APAC had 72 moves (-7, an 8.86% decrease), the rest of Europe had 71 moves (-43, a 37.72% decrease), and MENA had 2 moves (-4, or 66.67% decrease).
Data on Diversity
With diversity continuing to be a top-of-mind issue for alternative investment firms, we take a deep dive using Jensen Partners’ Jensen DiversityMetrics™ data visualization technology to see how well the alternative investment industry is improving diversity among the ranks of marketers.
❖ In Q2 2022, we tracked 436 diverse moves (327 female candidates and 109 male BIPOC candidates), representing 51.60% of all marketing moves in the quarter, a 1.57% decrease from Q1 2022 and a 7.34% increase from Q2 2021 for which we tracked 274 diverse moves (213 female candidates + 61 male BIPOC candidates) representing 48.07% of all marketing moves in the quarter.
❖ From a gender perspective, female moves in Q2 represent 38.70% of all hires, down from 43.34% we recorded for Q1 2022 and 37.37% for Q2 2021. We also observed that, unlike in Q1 2022, both female and male moves decreased in Q2 2022. When compared to male moves, female moves decreased by 25.51% from Q1 2022, whereas male moves decreased by only 9.76% from Q1 2022. However, when compared to Q2 2021, we observe that female moves increased by 53.52%, whereas male moves increased by only 45.10%.
❖ In terms of racial ethnicity, we continue to see that Caucasians continue to make up the vast bulk of all marketing moves – 75.27% in Q2 2022, representing a 5.87% decrease from 79.96% in Q1 2022 and a 5.50% decrease from 79.65% in Q2 2021. Similar to Q1 2022, where we observed a boon in marketing hire activities across all ethnicities, in Q2 2022, we note that marketing moves increased across the majority of ethnicities, with the exception of Caucasian and South Asian hires. Similarly, compared to Q2 2021, we note that marketing moves increased across all ethnicities. Hispanic moves experienced the highest increase when compared to Q2 2021 by 350.00% (or 36 moves, +28 from Q2 2021). The increase in Hispanic hires is followed by Middle Eastern hires with 24 moves (or +14 moves, +140.00%), East Asian with 95 moves (or +40 , a +72.73% increase), Caucasian with 636 moves (or +182, +40.09%), Black with 26 moves (or +7, +36.84%), and South Asian with 17 moves (or +3 , +21.43%).
❖ Last year, we noted that the number of Black marketing professionals hired as a percentage of all hires decreased by about 12% from the pre-protest period (Q4 2019-Q2 2020) to the post-protest period (Q3 2020-Q1 2021), with Black professionals remaining a minority across the alternative investment industry with just 3.1% of all hires in Q1 2021. In 2021, we observed a continuation of this negative trend, with Black professionals representing only 3.10% of all hires. Similarly, in Q2 2022, we observe that the number of Black marketing professionals hired as a percentage of all hires did not improve, representing only 3.08%. However, when compared to previous quarters, we note an increase of 4.00% from Q1 2022 and a 36.84% increase from Q2 2021.
Jensen Partners' New Product Offering: DEI Market Mapping
We work directly with senior investment professionals and senior marketers to identify, attract, and hire the industry’s most accomplished diverse professionals.
Over the last decade, we have built a dataset that includes verified demographic data for more than 25,000 investment and distribution professionals from across the industry, including 8,000 who self-identify as having a diverse background across more than 100,000 positions.
We harness that data to support the build-out of diverse investment and marketing teams.
Current Mandates
See below for a partial selection of current mandates. Contact us at info@jensen-partners.com to learn more about each search.
HIRING: $1.2B North American Real Estate Fund
ROLE: Head of Capital Raising
LOCATION: Los Angeles / Beverly Hills
DESCRIPTION: Our client is one of the leading West Coast-based real estate fund’s looking to add a Head of Capital Raising. The successful candidate will have an embedded Real Estate product knowledge and an in-depth knowledge of sourcing capital throughout North America via Institutional, UHNW, Family Office and RIA channels. There is additional scope for taking on a broader leadership function within the firm.
HIRING: Global Private Fund Group
ROLE: Mid-to-Senior level Project Manager
LOCATION: London
DESCRIPTION: Our client is a leading global private fund group providing fund placement, secondary advisory, and GP capital advisory services to leading fund managers and investors. They are looking to add a Mid-to-Senior level Project Manager to assist with executing private equity, infrastructure and/ or private credit fundraising mandates. The successful will have in-depth knowledge across private markets and the diligence to run a fundraising process from start to finish. The role would also include sourcing and originating new areas of business.
HIRING: $1.3B AUM Secondaries Fund
ROLE: Head of Capital Raising
LOCATION: NYC
DESCRIPTION: Our client is a leading private equity-aligned secondaries fund looking to add a Head of Capital Raising for North America. The successful candidate will have deep relationships across the institutional spectrum, an embedded private markets capital raising track record and ideally have specific knowledge of the secondaries market.
HIRING: $16B AUM Global Hedge Fund
ROLE: Director, Marketing & Investor Relations
LOCATION: London
DESCRIPTION: Our client is a leading macro hedge fund looking to add a senior-level marketing and investor relations specialist to assist with global capital raising initiatives. The successful candidate will work for an established hedge fund and have a proven track record of sourcing capital from international institutional investors. They need to be a self-starter, commercially astute with excellent academic credentials.
HIRING: Real Assets focused Private Fund’s Group
ROLE: Head of DACH Distribution
LOCATION: Frankfurt/ Munich / Zurich or London
DESCRIPTION: Our client is one of the leading independent fundraising and advisory services for private market strategies, focusing on infrastructure, real assets, and private credit, often with a sustainable focus. They are looking to add a senior-level DACH Fundraising specialist. The successful candidate will run the distribution strategy and all fundraising initiatives throughout the DACH region with scope for broader European coverage. They will need to be a self-starter, relationship-focused, and able to draw on a defined institutional investor network. The preference is for this hire to be in Europe.
HIRING: Global Private Fund Group
ROLE: Vice President / Director Project Manager
LOCATION: New York
DESCRIPTION: Our client is a leading global private fund group focused exclusively on capital raising across a wide variety of alternative asset classes, which include buyout, distressed strategies, real estate, credit/mezzanine, energy/infrastructure and co-investments. They are looking to add a mid-level project manager and origination specialist to assist with running multiple fundraising mandates. The successful candidate will be highly commercial, methodical, and able to articulate complex information and coordinate global fundraising initiatives.
HIRING: Private Fund Group
ROLE: Vice President, Sales
LOCATION: New York, NY
DESCRIPTION: Our client is seeking an individual to focus on primary fundraising within the Firm's Private Funds Group, with a partial focus on the Northeastern region of the US. This person will raise capital from institutional investors on behalf of our clients' alternative investment manager clients.
HIRING: $38B AUM Hedge Fund
ROLE: North America, Institutional Client Development & Consultant Relations
LOCATION: New York, NY
DESCRIPTION: Our client is seeking a professional who will be responsible for several critical functions within the Client Partnership Group space. In particular, an essential part of the success of this position will be to develop and deepen relationships with investment consultants and North American institutional investors through ongoing visits, calls, and proactive communications in close collaboration with the Firm's investment professionals. This will require interaction and integration with the Firm's global investment team to develop a complete understanding of our clients' solutions. The successful candidate will be expected to be integral to the Client Partnership Group in New York.
HIRING: $51B AUM Credit Firm
ROLE: Managing Director, "Global Head of Consultant Relations"
LOCATION: New York, NY
DESCRIPTION: Our client is seeking to hire a Managing Director, Global Head of Consultant Relations for its Client Partnership Group in New York. This integral role will have responsibility for facilitating connectivity and business development with current and prospective partners. This role reports to the Global Head of the Client Partnership Group and sits on the Firm's Client Operating Committee. This individual will own the Firm's consultant relationships by growing existing relationships and converting prospective consultant partners. This individual will need to navigate between research consultants strategically, field consultants and the client to optimize coverage and drive an overall strategic plan for the Firm's coverage model and individual strategic plans for each strategy to ensure strong uptake and "pull through" across the Firm's investment capabilities.
HIRING: $75B AUM Private Equity & Credit Firm
ROLE: Managing Director, West Coast Distribution
LOCATION: Los Angeles, CA or San Francisco, CA
DESCRIPTION: Our client is seeking a senior-level fundraiser to lead coverage of the Western region of the US across the spectrum of Institutional investors and investment consultants while maintaining and growing existing investor relationships in the region. This individual will work strategically with the heads of business development to craft a strategic plan for coverage and consistent growth in the region.
HIRING: Private Fund Group
ROLE: Primary Fundraising
LOCATION: New York, NY
DESCRIPTION: Our client is seeking a senior-level primary fundraiser to market sponsor funds to the institutional investor community. As part of the Private Funds Advisory team, this individual will need extensive experience accessing private institutional capital on behalf of sponsors across various fund types. The team's capabilities are fully integrated with our client's global platform, ensuring their clients' broadest possible marketing efforts. Combined with the Firm's leading financial sponsor franchise, sector expertise and M&A capabilities, our client delivers a range of strategic, customized solutions to their clients across a wide range of strategies, including buyout, growth, real assets, special situations and sector-specific strategies.
HIRING: Private Fund Group
ROLE: Secondary Advisory
LOCATION: New York, NY
DESCRIPTION: Our client is seeking a senior-level secondary advisory individual to join their Private Funds Advisory team. Our client's Secondary Advisory group is mandated by institutional investors seeking liquidity from alternative investments or alternative investment managers seeking to recapitalize or restructure an existing investment vehicle. Our client advises their clients about the preparation of materials, financial position of alternative investment portfolios, sale or recapitalization process and other items.
This individual will be the day-to-day leader of transactions and pitch processes working with other professionals to originate new business opportunities (through their investor, general partner, and personal networks) and execute client assignments.
Award Cabinet
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