The media often portrays private equity sponsors as buyers that are focused on cutting costs as selling assets, much like they did 15 years ago. What’s missing are success stories about how firms have grown companies.
Private equity groups often flood the market with press releases about new deals, fund closings, and portfolio company acquisitions, causing these stories to get lost.
To be certain, sharing news about these developments is important for keeping key stakeholders informed. However, the approach is shortsighted when it comes to reputation management. Most PE firms these days employ an excellent resource for supporting their industry image: operating partners who generally remain out of the public eye.
PE firms regularly employ ex-corporate chieftains to work with portfolio company management teams, but they often under-utilize these human capital assets for public relations. Therefore, firms should view their business acumen, experience, and sector expertise as another arrow in the strategic communications quiver. After all, your people are the best representation of your brand.
Here are a few ways firms can proactively leverage these executives to support reputation management and tell private equity success stories.
DRIVE INDUSTRY VISIBILITY & ORIGINATION EFFORTS
For many PE firms, the ability to attract capital and source deals is dependent on how well known they are within an industry. Telling success stories is a great way to boost the reputation of your firm.
Firms can leverage executives with expertise in a certain sector to share their perspective on key trends and developments with trade media reporters. This helps to boost the firm’s visibility among investment bankers covering the sector. Name recognition is key.
These discussions with reporters can drive a consistent flow of media opportunities where the firm can have a prominent voice. Earned media coverage is an opportunity to get someone else to vouch for your story. It’s also a great way to get your brand out there in a cost-effective way. The more people hear about your brand, the more likely they are to engage with your firm.
SUPPORT INVESTOR COMMUNICATIONS
There is no one better to tell your story than operating partners who work closely with portfolio company management. Operating partners are well-positioned to tell a story about how the business has grown under the private equity firm’s ownership. They can provide good insights to readers about what a firm has done to build a company, and position the firm as a grower of businesses.
Investors are looking more closely at how general partners are creating value at portfolio companies and adhering to ESG practices. Operating partners are in a good position to share news of socially responsible investment practices. They can serve as spokespeople in media interviews to highlight achievements within a portfolio company. These insights become articles that IR professionals can share with investors at an annual meeting or posting in a virtual data room to support their fundraising activities.
Image via Pixabay