Investor Relationship Management - Acquiring Additional Funding

Investor relationship management is an important aspect of the investment management process because it can expand an investor portfolio. The management of relationships gives an investment manager access to additional capital resources from their clients in order to increase the yield for a client’s portfolio.

Investor Relationship Management

The investor relationship management (IRM) concept includes the building of trust relationships and establishing a personal connection with the client in order to meet their needs on a one-to-one basis. This connection is at the foundation of IRM and means that the client’s implicit trust in the investment manager removes many of the barriers that prevent the manager from effectively investing assets on the client’s behalf.

Using IRM to Acquire Additional Capital

Once the trust relationship has been established, the investment manager uses IRM to guide investment decisions and acquire what additional capital may be needed to meet investment goals and objectives. Decisions to invest or make available additional funding are guided not by what is expected of the manager but on what the investment manager has done for the client based on IRM. Having established a good investor relationship and effectively managing it allows the investment management to provide the best service for the client that is not complicated by mistrust or a reliance on constant questioning and second-guessing.

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