Context Jensen: Marketing Hires In Alts Industry Reaches Record In Third Quarter

Oct 12 2017 | 10:53pm ET

Alternative asset management firms hired fundraising and distribution professionals at a record pace in the third quarter, according to data tracked by industry executive search company and corporate advisor Context Jensen.

Total capital-raising moves reached an all-time high of 336 in the third quarter, up by more than a third from the previous high of 251 moves in Q2 and Q1, the company said. 

Overall, alternative marketing moves in the third quarter increased by 45.5% from Q3 2016 and by 141.9% from Q3 2015. 

The increased hiring activity was visible across several segments of the alternative asset industry, the data showed. Private Equity (84 moves), Hedge Funds (81 moves) and Multi-Asset Managers (75 moves) led the way, while Private Credit saw the biggest spike – up 81% quarter-over-quarter with 38 marketing moves. 

Other observations:

  • For the year to date, Context Jensen has tracked 838 marketing moves = +32.8% over the same time period in 2016 and +82.3% from 2015.
  • For the first time since the company began tracking marketing moves, private equity was most active sector. 
  • Two categories – Multi-Asset Managers and Private Credit – collectively accounted for 33.6% of all marketing moves in the quarter and 24.8% YTD.
  • Placement agents have emerged as one of the most popular sources for marketing talent, with an all-time high of 45 moves in the quarter.
  • Among hedge fund strategies, Equity is again the most popular with 25 moves, followed closely by Credit (15 moves) and CTAs (14 moves). 
  • Fund-of-Funds had their slowest quarter ever with just 1 move, suggesting that many FoF managers have moved to a multi-asset model that removes the double layer of fees.

“Alternative asset managers are maturing their distribution platforms at a fast pace,” said Sasha Jensen, Founder & CEO of Context Jensen Partners, in a statement. “The hiring we’ve seen over the last quarter speaks volumes about the next phase of asset raising sophistication.”

Context Jensen’s quarterly newsletter quarterly newsletter provides data and insights on the current fundraising environment for alternative investment managers, including hedge funds, private equity firms, multi-asset managers, real estate managers and third-party marketing firms. The publication is based on a proprietary big data recruitment model to mapping out the distribution platforms for more than 950 alternative asset management firms. 

Founded in 2011, New York-based Context Jensen Partners is an executive search firm exclusively dedicated to sourcing strategic capital raisers across the entire alternative asset management industry. The company joined forces with Context Capital Partners, an alternatives specialist with subsidiaries active in hedge funds, liquid alternatives mutual funds, private equity and industry events, in 2015. 

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