Expanding Private Equity Networks

By combining digital technologies and addressable market data, firms can connect with new investors, portfolio companies, talent + advisers

Relationships and timing are key ingredients of private equity success, yet many managers are missing opportunities to grow their networks and deepen stakeholder engagement using digital tools and targeted data.

Optimal coverage requires a comprehensive approach and this can be supplemented through digital channels.

Using content, digital technologies and addressable market data, it is possible to put a measurable framework in place, that supports market coverage and originates new opportunities. When these frameworks are operated correctly, they also build influence and digital authority in the chosen sectors and market segments. 

PRECISE TARGETING

These frameworks require precise targeting, with PPC (pay-per-click) distribution and measurement. Volume of traffic is not an appropriate success metric, it should even be avoided, so it is essential to rank all your prospects and continually refine them. Traffic from the wrong organisations and people creates unwanted noise which can be difficult to cut through. The quality of individuals and opportunities is the only thing that matters, so this is what should be monitored and benchmarked. The more you refine your audience, the more sophisticated your communications can become, speaking directly to LPs or management teams in a language that resonates.

Here are a few examples of audiences you can build connections with digitally:

INVESTORS 

Map out your existing and potentially new LPs so you can deliver them content, entirely adherent to the regulatory framework, that reflects your experience and performance drivers while reinforcing your key investment themes. You can separate institutions out into categories- pensions funds, sovereign wealth funds, insurance companies, family offices etc and tailor your messaging.

PORTFOLIO COMPANIES

Distribute content periodically to the management teams of your addressable market. Rotate the content to cover the use of capital, strategy, sector, investment stage and size. Showcase your most successful investments and exits to demonstrate how you operate and where you add value.

TALENT

The best houses are always looking to attract the best talent, either to join the firm or to connect to the network and support growth. Finding new quality advocates and ambassadors can transform your perception and improve outcomes for processes and investments.

ADVISERS 

Build closer ties with more individuals from across the organisations that can refer opportunities to you. Broadening your adviser network helps you hear about processes earlier and more often. Reinforce the type of deals you are looking for and excel at. Some advisers may also be able to support the portfolio as it grows.

The coronavirus has transformed the way investors and GPs think about travel and meetings. Personal contact remains crucial, but thoughtful use of digital tools, to form new relationships has become a key differentiator. Digital frameworks enable firms to cover more ground and connect with fresh opportunities earlier.

All this combines to validate an approach that supplements the work being done on a daily basis by investor relations and investment teams. Connecting your teams to more people and organisations from across their addressable market compliments their efforts with practical, functional support that makes the boat go faster.

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