There has been a shift from in-person engagement to digital interaction for most buying journeys – such as buying a car, an item of clothing, or office furniture. Even big-ticket purchases like property involve a digital component, as the purchaser conducts desk research and independent browsing usually alongside the in-person services of a real estate agent. 

It is less about whether there is a digital component, but more about a sliding scale of how big a role digital interaction plays. Hedge funds looking to raise capital have traditionally focused on in-person activities, with minimal digital engagement. This slider for this buying journey is on the move. 

Take events as an example. The hedge fund industry has long used events to raise capital. Typically the agenda is highly compelling, with a great lineup of industry professionals and celebrities. The location is attractive – for example, the largest events of this type take place in Miami. The entertainment is top-notch, from live performances by A-list artists to drinks events on luxury yachts. 

This lures the investors who attend for free on the basis that they accept a set number of meetings with fund managers. This in turn attracts the fund managers, who pay handsomely for the opportunity to meet with investors. This setup has worked well for years. 

In recent years though, these events have expanded far beyond the three days for which people are on site. Fund managers work proactively to set up meetings with their preferred investors weeks in advance of the event, and continue to engage the funds they met with – as well as those they missed – for months after. 

The original value of an event was to meet investors face-to-face, and this remains core to the offering. But why limit the ROI to just this? Using digital platforms and fund marketing solutions, hedge fund managers can use the event to fill their funnel, populate their CRM, and start conversations. Even if this doesn’t result in a meeting on-site, technology lets the fund manager connect with the investor, nurture them, track their engagement, and meet when the time is right. 

Hedge funds looking to fundraise in 2024 and beyond would be wise to embrace this. Signing up to attend a cap intro event is expensive, and to get the most back, they need to be ready to engage investors before, during and after the event. This will require a digital presence and strategic use of digital platforms. 

In our recent white paper, we discuss how fund managers can connect with investors digitally. The options for hedge funds have expanded significantly in recent years, and the market has not yet felt the full impact of this. Investors’ expectations and the technology available will continue to play leapfrog, each driving the other forward. Hedge funds want to ride this wave and not be left behind. For more information, check out the white paper now.