One thing I tell private equity firms is this: shorten your fundraising cycle. Exemplary communication and performance are two ways to do so, and smart marketing is another necessary approach. Take advantage of private equity marketing to build your brand and shorten the fundraising cycle. That way, you can draw investors to you, instead of expending valuable resources tracking them down.
Numbers tell the story of brand importance. A 2014 study by BackBay Communications surveyed nearly 300 people in the private equity field. The results? 98 percent affirmed that branding is a must. Branding helps private equity firms initiate deals, raise funds and recruit the brightest talent, each of which contributes to shortening the fundraising cycle. After all, what tends to be the biggest obstacle to successful fundraising? Uncertainty – whether about trust, if returns will be sufficient or where investments are going.
Private equity marketing is a branding strategy that establishes firms as authoritative and credible. I recommend that private equity firms make their websites accessible and update them often instead of waiting every two to three years to revisit brand identity when leadership changes. The tools are there for digital marketing. Customer relationship management software (CRM) helps private equity firms assess and target specific audiences and use metrics to track which efforts are more successful than others. CRM is also capable of matching investors and potential funding opportunities. Investors really appreciate being able to investigate prospects, many of which they can visit during a business trip.
The ideal website for a private equity firm is clear and concise about the firm’s approaches, its structure and the unique assets it offers in an increasingly crowded private equity market. It’s necessary for the websites to include investor portals that provide investors with immediate access to their data while safeguarding it. A well-designed website, along with CRM, frees up the time of private equity managers to do what they do best. Fewer minutes are needed to cast a net for potential investors and for routine, administrative tasks.
One of the greatest benefits of digital marketing is its global scale. We’re able to easily and efficiently expand our pool of potential investors so that it encompasses the world. Not only that, our websites and branding make it easy for investors who identify with our philosophies to find us. We must earn their business by continuing to be intelligent, creative and informative.