There are many, multiplying benefits for hedge fund managers, in using a CRM to raise and retain capital for their funds. Whether the CRM in question is as basic as a spreadsheet, or something more sophisticated, every stage of the fund marketing process can be impacted positively, with the correct adoption.

Today, we explore 5 of the principal reasons and benefits for fund managers upgrading their approach to customer data management.

What is a CRM?

In layman’s terms, CRM (stands for customer relationship management) is software that is used to manage client relationships, store prospect information and track opportunities. They are useful for many businesses because they allow them to keep in touch with their clients, document their needs, and provide the best possible service at scale.

Technically, a CRM can be as basic as a homemade spreadsheet, however when mentioned in this article, we will be talking about a more sophisticated software system, usually cloud-based, that helps manage that information.

Add a contact in your hedge fund's CRM


1. Manage all communication and historical interaction

Zoom. LinkedIn, email, even face-to-face. There are now a never-ending amount of ways that people ‘meet’ with each other in 2022, and for growing hedge funds it’s never been more important to track every opportunity, never dropping the ball.

A CRM, when implemented correctly, provides a historical context for every interaction with your client, network and potential investors. It records all the methods of communication that you have used with the contact and stores them in a chronological order, enabling you to manage long sales cycles, nurture relationships and ultimately close more deals.

2. Centralised database – one singular, true source of truth

Sticking to the theme of historical data and orderly organisation, your CRM can be the singular source of truth you are looking for – if implemented in the right manner.

Why is this useful? A centralised database can help fund marketers and salespeople in many ways. For example, it enables complex teams to have a single point of reference for all their data. Going a step further and using a cloud-based CRM will mean that everyone in the company has the ability to maintain data in real time, with each individual updating to a centralised location, reducing the chances of anything such as email addresses and phone numbers becoming out of date or getting lost.

3. Automation of daily tasks – saving you time

The automation of data entry and other client relations tasks is one of the many benefits that a CRM can provide for your company. With a hedge fund specific system, you will be able to automate repetitive tasks and save yourself and your team hundreds of hours per year.

CRM software has been around for a while, but it is only recently that it has become an essential building block for successful fund managers and across the asset management industry. Hedge funds are now starting to realise how automation can help them make their business more efficient.

Create tasks in FundPortal CRM


4. Segmentation

Data segmentation is a powerful technique that has become increasingly popular in the past few years. It helps marketers to better understand their customers and make more informed decisions about the messaging and timing, crucial to managing different prospect profiles.

With more data on your contacts, you can segment potential investors and tailor messaging to their preferences. Fund marketing campaigns are no longer myth, they can be a beautifully segmented reality.

Segmentation can be done on various levels. For example, it can be done by geographic region, by AUM, by investment strategy or even by psychographics. It can also be done by customer lifetime value or by engagement metrics such how many times an investor views your monthly performance updates. 

The benefits of data segmentation are numerous: it provides insights into customer behaviour and attitudes leading to better targeting of campaigns and perhaps most importantly, it helps fund managers identify which prospects are interested in which funds and where they should focus their time.

5. Facilitation of team communication

In a more distributed world, communication tools are needed now more than ever to help teams collaborate. A good CRM can share every note, update and deal with team members, enabling them to work together seamlessly.


A dedicated CRM is now a fundamental necessity for any fund manager that wants to stay connected and grow their business securely. It helps in managing all the customer data that is collected and it also provides a means of communication between the team members, helping them work more efficiently.

Every fund manager that deals with marketing their fund in 2022 and beyond, should unequivocally, 100% be using some form of CRM technology. 

As the industry continues to look for mature and specific fund marketing solutions, why not use the CRM built for fund managers, FundPortal by Edgefolio.

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