Brand Strength Becoming Increasingly Important for Sourcing PE Deal Flow
February 11, 2014
Private equity professionals say developing a strong brand is increasingly important when it comes to investing in companies and hiring employees, according to a new study by BackBay Communications, a strategic financial services branding, marketing and public relations firm, and PitchBook.
The study, Private Equity Brand Equity III, surveyed 290 private equity general partners, limited partners, funds-of-funds, advisors and consultants serving the private equity industry in the U.S. and Europe concerning their attitude and approach to branding. It found that there was near unanimity (98%) about the importance for private equity firms to have a strong brand. 92% said a strong brand helps private equity firms source deals, with a similar proportion saying it helps them raise new funds. Four in five (81%) also said a strong private equity brand helps attract and retain talent.
A growing recognition of the value of a strong brand is being reflected in the budgets of private equity firms and others working within the industry. In the next 12 months, 56% are planning to invest more in their marketing materials and website, 44% to invest more in investor relations, and 34% to invest more in public relations.
The study also revealed that the private equity community is starting to embrace social media. One-in-three firms now has a social media presence to enhance their brand.
To see the full findings from the study and to learn more about private equity branding, click here for the white paper.