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Clear story-telling to boost fundraising prospects

As competition for investor funds continues to sharpen, private equity firms need to focus on their messaging and communication to stay close to their clients. Stephen Fishleigh, Managing Director, London at BackBay Communications outlines the primary considerations for managers to maintain their competitive edge…

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As competition for investor funds continues to sharpen, private equity firms need to focus on their messaging and communication to stay close to their clients. Stephen Fishleigh, Managing Director, London at BackBay Communications outlines the primary considerations for managers to maintain their competitive edge…

Can you outline the industry trends which have been driving growth and development within your firm over the past year?

Fundraising and dealmaking slowed in 2022 and this has contributed to what is already a highly competitive market with a lot of firms looking to raise capital from a finite pool of investors where differentiation and branding is becoming increasingly important. We’ve had more and more firms coming to us to examine their positioning, refine their messaging and ensure that it is consistently communicated. This has led some to build out digital marketing and social media programmes for the first time, or take a more proactive approach to interactions with the media, identifying emerging industry trends and sharing their perspectives, to enhance their brand and tell their stories.

The other thing is the growth of technology service providers for private equity firms. We’re working with a growing number of technology providers and consultants in the space, who are keen to tap our industry understanding and connections to enhance their visibility and build credibility. 

Are there upcoming regulatory updates which could affect your business and that of your clients?

We’re seeing greater scrutiny of private equity by the regulators and a focus on transparency. This is being driven by a range of factors and is manifested in all sorts of ways – from AIFMD to SFDR – but it all amounts to GPs needing to think more carefully and be more exact with their communications. We aren’t compliance or legal experts, but we work with our clients and their counsels to ensure communications are compliant and effective. 

Beyond that, the introduction of the Long Term Asset Fund (LTAF) in the UK and the pretty extensive revamp of the ELTIF in Europe could be significant as they promise to make private assets available to a wider pool of investors. Not only does this democratisation create a huge opportunity for private markets firms to grow their assets, but there’s a big job to be done on the communications side to reach entirely new audiences of individual investors and their advisors.

And things are moving quickly; just last week we saw Schroders Capital launch the first LTAF. It’ll be fascinating to see how this develops.

Do you see the industry changing fundamentally over the course of the medium to long term? Are there any trends which have been given over-inflated importance?

We don’t see the industry fundamentally changing. The private markets are well proven and at their core it’s a pretty straightforward model, but there’s always innovation and so it’ll be interesting to see how the market develops. 

One area that’ll have a profound impact on how the industry develops is technology and digitisation. From the use of Al and ML in deal sourcing to liquidity management and operational efficiencies, the impact of technology on all aspects of the investment lifecycle shouldn’t be underestimated. 

Can you list three key learnings you are passing on to clients in the current environment?

Focus on your messaging. Think about the story you want to tell, who you want to tell it to and how best to tell it. Be consistent and clear in telling it.

Differentiate. Building on the above, focus on the values and attributes that set you apart. It could be strategic, cultural or operational, but being able to articulate what sets you apart could give you the edge. 

Communicate. This doesn’t necessarily mean publicly, although it will almost certainly be part of the picture. But make sure you stay in close communications with your key stakeholders. In a challenging market it’s doubly important.


Stephen Fishleigh, Managing Director, London, BackBay Communications – Stephen heads up BackBay’s London office, developing and implementing strategic communications programmes across all of BackBay’s focus areas of private equity, impact investing, wealth and asset management and fintech with a particular emphasis on the UK and Europe. He has over two decades of public and media relations, corporate communications, and marketing and market research experience within financial services.
 

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