Five “Good” Reasons NOT to Have a Good Pitch Book

by | Nov 9, 2016 | Alternative Investments

If you manage a hedge fund or private equity fund, or some other type of boutique investment offering, you may have decided not to put too much time, effort or money into creating your pitch book. If so, that’s probably because you have some of the following thoughts in common with many of your peers…

reason1You think of your pitch book as just another “cost of doing business” rather than as a business-building tool.

But, think about it this way. Although a good pitch book is not a magic wand for signing up investors, it is a key link in your marketing chain. In practice, a strong book can help you gain-and-maintain the interest of investors whom you might otherwise lose early on with a mediocre or poor pitch book. This ability to maintain the interest of investors can ultimately help you win over more of them and add to your bottom line.


reason2You believe that creating a pitch book is all about presenting your story better.

Actually, that’s somewhat backwards. In reality, developing a pitch book is an opportunity for stepping back and creating a better story — one that’s more compelling and memorable and will help you stand out from your competition. Put another way: it’s an opportunity to present your firm and strategy in a way that’s easy to understand, but hard to forget.


reason3You’ve been convinced that what you need above all is a strong brand identity.

There’s a lot of talk these days in the alternatives space about branding — what it is and how important it is. But much of the commentary seems to treat small hedge and private equity funds as if they were major national enterprises on the order of Coca Cola or Nike. The reality is that, as a boutique manager, you can attain all the branding you need in your market by:

  • Demonstrating that you have an effective, differentiated and replicable investment strategy, plus the skills and infrastructure to consistently execute it well.
  • Providing investment insight that conveys thought leadership.
  • Running a tight ship, with plentiful transparency, proper compliance, and reputable service providers.
  • Looking and acting appropriately professional while you’re making your case.

And as time goes by, you’ll be able to further build your brand by continuing to do what you’ve said you’ll do and producing positive results.


reason4You think that your pitch book should be all about you, your firm and your offering.

The truth is, your pitch book should also be about your target investors, the issues they face, and how investing with you might help them address their investment goals.


reason5You feel that it’s a good idea to write and design your own pitch book.

Although no one understands your business better than you, marketing it in a way that resonates with prospects (who most likely have little or no idea about what you do) typically requires large doses of objectivity. That’s why even very large companies with the resources to do their own marketing usually engage outside agencies. They understand that, just like legal and accounting services, marketing services entail a necessary expenditure. And it’s the one expenditure aimed directly at increasing business and enhancing the bottom line.

 *   *   *   *   *
When all is said and done, there really aren’t any good reasons not to have a good pitch book.