Stanton’s senior leaders, Tom Faust and Charlyn Lusk, sit down to discuss key trends in the private capital industry and shed light on how to communicate during times of uncertainty.
How do you recommend your clients communicate during times of lower transaction volume? Has the depressed deal environment impacted how you support them?
Charlyn: As macroeconomic factors, such as tariff implications and higher borrowing costs pervade, there’s a tendency among some private equity fund managers to inwardly focus their attention and reduce engagement with key external stakeholders. However, we counsel clients to remain active and stay in front of key audiences during times of lower transaction volume. Sharing perspectives on the issues investors and deal sources are concerned about can help drive deal flow and generate investor interest.
Tom: I agree with Charlyn; we believe that during periods of lower transaction volume is precisely the time to strengthen brand awareness and proactively engage with media who are seeking insights. Difficult market environments are a time when a firm can stand out among peers by offering unique commentary and points of view.
For a growing and increasingly competitive market asset class like secondaries, what advice would you give to help a firm generate positive attention?
Tom: There’s been a major change in the acceptance of continuation fund secondaries deals among institutional investors, and media are hungry to hear from such firms. But if you are saying the same thing as everyone else, you just blend into the background. Take the time to articulate a distinct point of view in compelling language and ensure it is consistently used in everything from interviews to your website, marketing emails and communications to investors.
Charlyn: In addition to reviewing messaging, we always advise our clients to publicize their wins. GPs who successfully complete CV transactions often issue a press release announcing their completion of a GP-led deal. This includes the name of the secondaries firm that participated—but little more than that. Such releases present an opportunity for secondaries firms to insert messaging emphasizing their experience, expertise and resources to structure and finance these complex transactions, and firms should lean in to secure a stronger presence in these materials that are widely read by the media who should be covering them.
What is an area of opportunity that more firms should be taking advantage of?
Tom: The big differentiator for firms now—and for the past few years—has been value creation. Media and LPs value it highly but firms either do not like to talk about how they do it or only do so when a deal is completed and successful. The more firms can demonstrate what they do day-in and day-out to make portfolio companies stronger and more sustainable, the more positive attention they will get. Part of that is showing how you overcome obstacles when things do not go quite according to the investment blueprint.
Charlyn: Firms should look at every external facing asset and communication as a storytelling opportunity, whether it is a website, press release, blog post, white papers, surveys, sponsored content, a podcast, a webinar, digital content, etc. It is helpful to work with a thought provoking, creative, industry savvy external party to help frame a firm’s differentiating characteristics and tease out the examples that illustrate and showcase and bring to life how a firm does what it does to create value.