The primary difference between IR roles at corporate issuers and funds lies in their focus: corporate IR professionals concentrate on maintaining investor relations and regulatory compliance, while IR professionals at funds are focused on fundraising and maintaining investor relationships.
T
he role of an investor relations (IR) professional is mul- tifaceted and varies significantly depending on the type of company and its stage in the lifecycle. Understanding
these nuances is crucial for anyone considering a career in this dynamic field. For early-stage companies, the focus of an IR professional is
largely on securing funding from venture capitalists and angel investors. Tis involves articulating the company’s vision, track record, funding needs, and planned use of funds. At this stage, the IR role is pivotal in establishing the financial foundation necessary for growth and development. In contrast, IR professionals at public companies face a different
set of challenges. While their responsibilities include those of the aforementioned IR professionals, their role also includes ensuring compliance with Regulation Fair Disclosure (Reg FD) and manag- ing the quarterly earnings and reporting cycle. Te bounds for data disclosure are more stringent, requiring meticulous attention to detail. Additionally, they must navigate the complexities of working with sell-side analysts, balancing trans- parency with strategic communication and managing guidance. Te primary counterparts who these professionals communicate with are fund managers and sell side analysts.
The IR Role at Funds Te IR role diverges even further when it comes to IR professionals working for a fund, whether it be a private equity firm, hedge fund or asset manager. Here, the primary focus is on fundraising for the fund itself. While there are similarities across these roles, such as the need for strong communication skills and financial acumen, the day-to-day activities and strategic priorities can differ greatly, and this role has elements that liken it to a traditional sales role. Tis exploration of the diverse roles within investor relations
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highlights the unique challenges and opportunities each position offers. Whether you are looking to secure capital for an innovative startup, navigate the regulatory landscape of a public company, or drive fundraising efforts for a fund, a career in investor relations in any of these avenues can leverage a similar skill set while offering a variety of experiences. Understanding these differences can help professionals make
informed decisions about potential career shifts within these ex- citing and ever-evolving fields. Tis article explores the nuances between the IR role for a public company and the IR role for a fund. Before we can draw on the similarities, let’s outline some of the differences, which are stark. Jeffrey Goldberger, Managing Partner at KCSA Strategic Com-
munications, a consulting firm with an investor relations arm, defined the two functions as “night and day, not even comparable.” He emphasized, “As an IRO, you wear a lot of hats. You do every- thing from receiving inbound inquiries for institutions to drafting a press release, to working on messaging for a non-deal roadshow.” While the hats you wear as an IR professional at an issuer may
be different than as a fund IR professional, fund IR professionals also have no shortage of hats. A fund IR professional’s hats range from being a content creator, to an event coordinator, to a financial analyst, to a sales and marketing guru, and more. Figure 1 on the next page explores some of these distinctions. Te backgrounds of IR professionals for corporate issuers and funds often differ, while they both leverage financial acumen and strong interpersonal skills. Te IR role for a fund often requires robust sales skills while an IR role for a corporate issuer may require sell-side experience. Friederike Edelmann, Vice President, Investor Relations & Cor-
porate Sustainability at Central Garden & Pet, had a background in marketing and communications and a background in finance, accounting, and legal which helped her segue from marketing into IR. While she believes, “No day is like the other,” she spends most of her days “staying informed about products, peers, customers and regulations, as well as servicing internal stakeholders with relevant news.” She believes her favorite part of IR is “you hardly ever know what the day will bring. We may acquire a company or dispose of a part of the business. Being flexible and getting access into all these parts of the business is one of my favorite parts of the role.” Te primary difference between IR roles at corporate issuers and funds lies in their focus: corporate IR professionals concentrate on maintaining investor relations and regulatory compliance, while IR professionals at funds are focused on fundraising and maintaining investor relationships. Te career paths for each role can diverge significantly, with
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