Building the rolodex

For an industry built on long-lasting relationships, making a strong impression with new contacts is key. Accordingly, we asked a range of private fund professionals, as well as placement agents and academics, about their networking strategies. Below is a summary of their responses:

Meet the ‘right’ people 

At industry conferences and similar networking events, many like to shake as many hands as possible and distribute their business cards freely. But GPs tell us this isn’t always the best approach. Networking isn’t a numbers game, and relationships should follow the “quality over quantity” rule. Relevancy and genuine interest in another’s field of expertise or profession should guide new relationships, sources stress. “It is better to have five people willing to help you out than it is to have 500 that simply know your name,” remarks one GP. 

Work the room 

On the other hand, too much time shouldn’t be devoted to any one person. For instance, senior dealmakers like to unleash their junior dealmakers at networking events to build their rolodex and absorb the intricacies of private equity social etiquette. But many GPs tell us their younger colleagues tend to find one person and latch onto them for the entire event. “They’d rather keep an exhausted conversation going than awkwardly bumble around looking for a new face,” says one GP. To avoid this problem, sources say it’s proven helpful to ask the first person you meet who they know and to request them to make introductions. Another approach offered is to work the room with a friend or colleague, which can make approaching new people feel less intimidating, says Lynne Sarikas, director of Northeastern University’s MBA Career Center.

Plan in advance 

When in networking mode, it’s easy to fall into the trap of asking lazy, generic questions, sources warn. “Think of the last industry conference you went to and what you spoke about? Probably not too interesting,” says one GP asked about networking pitfalls. Some GPs even tell us they like to think of ice-breaker questions before mingling. A captivating panel discussion can be fodder for lively conversation. And if targeting someone specific, some even pull out their smartphone and research the person’s bio and firm before approaching in order to better facilitate a conversation.

Be yourself 

A word of caution to the wise: “If you talk like you have a PhD in macroeconomics when you don’t, you will get caught out,” muses the first GP. Alex Dymock, director at Seneca Investment Management, says he fell afoul of this particular mistake early on in his career. “I was talking to someone who asked why I wanted to get in to fund management and finance and I said it was to have knowledge on a whole range of subjects, like Indonesian agriculture and Brazilian currencies and at that point my knowledge was thin. So he asked me what the Real closed at the day before; I had no idea and he caught me out. Not a good impression.”

Put a name to each face 

Many people rush through the mechanics of introducing themselves without properly listening to what the other person may be saying, sources add. That can make it easy to miss (or not remember) a person’s name. GPs like to hear their own name repeated back to them, which can personalize the conversation, says Saikas. “Doing so makes the other person feel more comfortable, like you really know him and he knows you.”

Have other networking strategies to share? If so, email pfm associate editor Thomas Duffell at Thomas.d@peimedia.com