Private equity professionals say that the need for a strong brand has increased amid growing competition in the industry according to a new joint study by SuperReturn, the world’s leading private equity conference series, and BackBay Communications, a public relations, marketing and branding consultancy that specialises in working with private markets firms.

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BOSTON & LONDON – BackBay Communications, a leading public relations and integrated marketing firm focused on the financial services sector, today announced it has been named Best PR & Communications Agency in Europe by Private Equity Wire. BackBay accepted the award last night at the Private Equity Wire European Awards 2023 Gala event at the Reform Club in London.

The Private Equity Wire European Awards recognize excellence among private equity fund managers and service providers in Europe across a wide range of categories. Nominated service providers are based on a widespread survey of more than 100 GPs and other key industry participants. Voting for the awards is conducted via an online poll of the entire Private Equity Wire userbase, where participants are asked to make their choice among the shortlisted firms in each category.

“It is an honor to win this prestigious award,” said Bill Haynes, BackBay Founder & CEO. “Since our founding in 2005, we have been focused on serving the private equity industry and we have been fortunate to partner with so many exceptional private markets firms to help with communications initiatives that are critical to their success, supporting fundraising, deal sourcing, hiring and portfolio company growth. Thank you to Private Equity Wire, our clients and all who voted for us.”

BackBay Communications has worked with over 120 private markets clients since its founding in 2005. In 2022, BackBay promoted 132 deal announcements on behalf of private equity clients. BackBay has been ranked a top 10 public relations agency for private equity deal announcements in The Deal’s Power Rankings for the last 15 consecutive quarters. The firm was recognized by The Drawdown Awards in 2022 as Private Equity Marketing & Communications Firm of the Year. BackBay is ranked the #1 Boston-based financial services PR firm by O’Dwyer’s.

BackBay is comprised of four industry-focused groups, which in addition to Private Equity include Asset Management, Fintech, and Impact Investing & ESG. BackBay has significant experience and expertise in each of these financial services industries.

For more information on BackBay’s private equity experience and communications offerings please visit: https://www.backbaycommunications.com/private-equity/.

About BackBay Communications
BackBay Communications is an integrated public relations, content marketing, and digital agency focused on the financial services sector including private markets, asset and wealth management, financial technology, and Impact investing / ESG. BackBay works with clients to help them build their brands and drive new business. BackBay has offices in Boston and London and global agency partner relationships. For more information, please visit www.BackBayCommunications.com.

Contact
Jen Dowd Zeilman
BackBay Communications
Jen.Zeilman@backbaycommunications.com

In fall of 2017, our joint survey with capital markets financial data software company Pitchbook revealed that 70% of private equity firms believe that a strong brand is very important. This was seen to be of increasing importance in the last two years due to increased activity and competition in the space, where a strong brand is seen to be critical in fundraising, sourcing deals and recruiting.

To learn more about brand building in private equity, including the attributes that contribute to a strong brand, the business benefits and challenges, as well as best practices, please click on the link below.

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In collaboration with the capital markets financial data software company, Pitchbook, our joint survey in 2014 revealed 98% of respondents agreed that a strong brand was important, but they often neglected brand building activities such as social media – with only 12% of private equity firms reported to be active on social media.

To better understand the key audiences, activities and firm characteristics that 250+ private equity professionals believe to be most effective in building a strong brand, please click on the link below.

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As international investors look to snap up ‘undervalued’ UK assets, private equity firms look to brand visibility and storytelling to give them the edge

The recent attempted takeover of Activision Blizzard by Microsoft, which was blocked by the UK’s Competition Markets Authority, was the most visible evidence of a trend taking place across the business ecosystem: U.S. interest in UK businesses. And it’s not just corporates eyeing up UK businesses. According to the law firm Mayer Brown, U.S. private equity firms acquired 35% more UK businesses last year compared to 2021/22.

Valuations for UK companies have been regarded as low for some time, particularly in comparison to those in Europe and the US. A recent analysis conducted for the Evening Standard found that the UK’s top 100 companies would be worth nearly £500 billion more if they were listed on the New York Stock Exchange. Some trace this back to the Brexit referendum in 2016 which caused a long period of uncertainty as new arrangements with the EU were thrashed out and as international investors waited to see how the situation played out.

But it was the volatility that resulted from having three prime ministers in as many months and the turmoil created by the Truss government’s “mini-budget” which sent Sterling spiralling to near parity with the Dollar that really caught the eye of buyers across the Atlantic. Not only were UK companies cheap, but the pound was cheap too, which led to Ares’ Blair Jacobson to tell the FT that “everything in the UK is on sale”. It may not have been a frenzy, but it certainly renewed interest in UK corporates, which has persisted into this year. The relative stability and calm that’s returned to UK politics in recent months has given international investors greater confidence in the UK.

In terms of US private equity interest in the UK, there have been several notable acquisitions in recent months including BlackRock’s investment in mini golf restaurant chain Puttshack and Energy Capital Partners’ acquisition of Biffa, the waste management company, while there are a number take-private deals of UK plcs in the works at the moment, including Providence Equity’s acquisition of Hyve.

But buying a UK company is easier said than done – as Microsoft found out… For them, the issue came at the last hurdle, but for many private equity firms, particularly those outside of the UK, it’s finding the opportunities and getting a foot in the door in the first place. There’s been a spate of US private equity firms opening offices in the UK in recent months to capitalise on the deal-making opportunities – Thoma Bravo, Great Hill Partners and One Rock have all opened offices here in the last 12 months and Apollo last month moved to new London premises as part of its “expanded regional hub”.

That approach may make sense for the big brand names, but for smaller firms that lack the recognition – and resources – of a Carlyle, Blackstone or Apollo, tapping the market presents more of a challenge. BackBay recently teamed up with SuperReturn to survey private equity firms – the results of which will be released at SuperReturn International in June – and we were surprised to find that generating awareness among CEOs for deal sourcing purposes was the most commonly referenced reason for private equity firms to build their brands, coming in ahead of fundraising/LP awareness.

With private equity firms sitting on record levels of dry powder and amid a slowing fundraising environment, putting capital to work is as important as it’s ever been. In a highly competitive deal-making environment, brand recognition and understanding is a key ingredient in the process. It won’t get a deal done, but it might start a conversation.

In addition to publicising deals, exits and fundraises, we’re increasingly finding that our private equity clients are looking for new ways to tell their stories. Whether it’s through case studies, providing a deep dive into the deals they’ve done and their value creation approach, better utilising LinkedIn as a thought leadership platform, developing thought leadership articles, videos and other content on the sector and geographic trends they’re seeing, or developing profiles on team members, there’s a greater focus on projecting what the company stands for and why they are a good long-term partner to drive growth, beyond purely communicating the financials.

And they’re embracing a wider range of channels too. Social media, video and podcasts are increasingly sitting alongside traditional website content and media relations as part of the mix as firms look to take their message to a broader audience that consumes information in different ways.

As private equity becomes a bigger part of the financial system and a bigger part of everyone’s lives, the importance of brand recognition and storytelling will only become more important.

This article originally appeared in WealthManagement.com.

While the markets may be acting as if everything is getting back to normal, wealth advisors know that most investors haven’t gotten over the pandemic yet, at least not psychologically.

To be sure, with the S&P 500 and MSCI EAFE indexes back at all-time highs, many portfolios have fully recovered — and then some — from the market lows of March 2020. Yet even as Covid restrictions are lifting and businesses are opening back up, there are plenty of signs that the fear and stress triggered by the pandemic and ensuing economic downturn have yet to subside.

This is manifesting in a variety of forms. In some cases, it is leading to an aversion to risk-taking. More than half of high net worth investors believe “de-risking their portfolios” will be a top priority over the next 12 to 18 months, according to a recent survey by BDO. In other cases, investors aren’t as trusting of the markets as they once were. A survey of affluent investors by FactSet released in April found that 85% only want to invest in companies they know and trust going forward. Overall, nearly 60% of affluent investors believe their wealth planning strategies will need to be altered as their priorities, sensibilities, and situations have changed.

In this type of environment, how can advisors reassure disquieted clients in the second half of the year with their messaging and communications?

Acknowledge what we’ve been through. While behavioral finance experts warn us not to fixate too much on the recent past to avoid the trap of recency bias, history teaches us not to ignore the lingering after-effects of true Black Swan events. The Great Depression and the global financial panic changed investor attitudes for years and reset goals, and the pandemic is likely to do the same.

In other words, this is not the time to revert to the communications strategy of 2019. Instead, be willing to acknowledge the impact of the pandemic and your clients’ anxieties in client communications and thought leadership.

Talk about values in addition to value. For many investors, the pandemic exposed inequities in the economy and the healthcare system. For others, it offered a glimpse of the type of devastation that climate change could trigger. As Vikram Gandhi, who developed and teaches Harvard Business School’s first course on impact investing, recently wrote: “Think of the magnitude of destruction, over and above the catastrophic effects of 2020, if coasts begin to disappear, fertile lands go barren, and if millions are displaced? Then consider that there are no vaccines to contain rising sea levels or tame extreme weather events like flooding, hurricanes, and wildfires.”

Not surprisingly, 72% of affluent investors say they now want to learn more about responsible investing, according to the FactSet survey. And a separate survey by the consulting firm Capgemini found that investors who already embrace sustainable investing want to commit a greater percentage of their portfolios to these strategies after the pandemic. To help them do that, advisors need to communicate their willingness and ability to reflect client values into their wealth plans.

More than that, advisors need to communicate on a much more personal level than ever before to convey their empathy and interest in truly understanding their clients’ beliefs and principles. While embracing the personal seems more like life planning than wealth planning, that’s actually one of the biggest takeaways of the pandemic — that our physical and financial health and psychological and spiritual well-being are all inexorably linked.

Paul J. Lim is Vice President and Head of the Asset Management and Impact Investing group at BackBay Communications, an integrated public relations, content marketing, and branding firm focused on asset managers, fintech, impact investing and private equity clients.

As more private investment firms turn to content and digital marketing, the bar for authenticity is being raised.

As part of a panel at Private Equity International’s recent Investor Relations & Marketing Forum this past September, delegates were surveyed and asked to identify the biggest obstacle currently standing the way of an effective digital marketing and content strategy. Unsurprisingly, compliance concerns and available resources stood out as the two biggest hurdles. What was revealing, however, was the enduring perception that the most important target audiences – namely limited partners (LPs) and business owners – are perceived to be inaccessible by general partners (GPs).

If there are two essential factors in reaching either limited partners or business owners, though, across the panel everyone agreed that it comes down to authenticity and a point of view.

Speaking on the panel were some of the biggest names in the business when it comes to conceiving digital marketing strategies and creating content, including Devin Banerjee, CFA, Senior Financial Services Editor at LinkedIn; Kathleen Richmond, Director at Serent Capital; and Andrea Williams, a managing director and head of corporate communications and branding at Oaktree Capital Management.

In looking at the survey, the fact that nearly one in five sees LPs and business owners as being impenetrable speaks to the relative nascency of digital marketing within private equity. But the survey also reveals a glaring blind spot in terms of how firms are trying to reach and influence two constituencies so vital to raising capital and sourcing deals. While the panel addressed strategies around compliance, processes, technology, and services core to an efficient content-marketing program, it was the discussion around reaching these specific audiences that can have the biggest impact on raising and deploying capital.

One observation from the panel was that across the board, everyone is witnessing material increases in the number of peers producing thought leadership, the volume of content pieces being created, the frequency at which they’re publishing it, and in the number of channels and mediums being utilized.

However, this influx of thought leadership – in large part triggered by the challenges to network and schedule meetings during the pandemic — makes it all the more imperative that GPs tailor their message to the specific audience being targeted and produce material that delivers a distinct point of view. It’s not that LPs or business owners are impenetrable, but their respective filters are far more discriminating than other constituencies.

For instance, one point discussed was that LPs in particular want predictability when it comes to content. One of the panelists noted preference for a consistent cadence in the distribution of commentary to institutional investors and a “serialized” approach in the topics addressed. LPs, they noted, are also very particular in terms of the content they engage with. Broad themes, offering indistinguishable views on a topic that everyone has a view on, will fall on deaf ears. More discrete subject matter – such as trends specific to a region within Europe for European investors or how a specific strategy might complement a broader alternatives allocation – tend to resonate better and are generally more actionable.

At BackBay, we’ve helped clients develop commentary with one specific prospect in mind, covering a client need unique to a very small subset of the institutional investor universe, even if it outwardly appears like any other top-of-the-funnel content piece. The perspective, then, enables the distribution team to have a more constructive dialogue with key contacts. It can be further pushed out through social media channels, boosted via sponsored campaigns to pinpoint employees at the institution; and published live on the website, where it’s discoverable to similar prospects facing analogous challenges.

But content marketing, one of the panelists observed, should support efforts at every stage of the sales funnel. They noted that their goal initially was to reinforce sourcing efforts geared toward existing prospects, but as their digital marketing program gained momentum, they saw significant traction in inbound inquiries from business leaders and other circles of influence. Post-COVID, the role of content to support existing relationships and maintain a presence among the LPs and business leaders within a firm’s network, also can’t be overstated.

Another theme that came out of the discussion was the power of today’s digital marketing platforms to automate campaigns, track activity at every step of the “client” journey, and optimize outreach through available data. Moreover, social media channels continue to evolve to facilitate more sophisticated content strategies. LinkedIn, for instance, has rolled out LinkedIn Live (to stream videos in real time), LinkedIn Newsletter (with push, in-app, and email notifications that reinforce the reach), and developed better integration with third-party tools, such as Hubspot or Salesforce.

If there are two essential factors in reaching either limited partners or business owners, though, across the panel everyone agreed that it comes down to authenticity and a point of view. The best content isn’t promotional. And advertisements – digital or otherwise – are a far better venue through which to humble brag. The best content, instead, informs and provides a perspective that limited partners and business owners aren’t privy to in their own day-to-day dealings. And authenticity – free from self-promotion – is what resonates with the hardest-to-reach audiences.

It wasn’t discussed on the panel, but authenticity requires a certain amount of vulnerability. Examples can be found in any one of Howard Marks’ memos, but in his most recent commentary, to cite just one example, he admitted he couldn’t make any sense of the GDP numbers. So he took the question another expert who outlined the byzantine – and not-at-all intuitive – path to get to the 32.9% decline recorded in Q2.

Most other distressed debt fund managers would just point to the headline number without any introspection and report that a wave of bankruptcies would be forthcoming. But in divulging what he doesn’t know, and then taking his readers along for the ride as he seeks out the truth and a better understanding, Marks conveys his intellectual curiosity, provides cues around his thoughtfulness and discretion, and entertains his audience much in the same manner as a Malcolm Gladwell or Michael Lewis. Brené Brown would certainly approve, as do Mark’s peers and business partners, who certainly don’t view him as any less of an expert because he didn’t understand something.

So the idea that LPs and business owners are impenetrable really is a myth. The catch is that one thought piece alone won’t break through, especially if the topic addressed doesn’t stand out in a competitive landscape in which everyone has an opinion about the latest Fed actions, economic data, or government policy. It requires a strategy, alignment with the rest of the organization (including compliance), and a champion who relishes the idea of creating content and is willing to explore ideas left untouched by their peers.

New research from BackBay Communications and Osney Media reveals a projected increase in compliance expenditure and regulatory burden for asset managers over the next five years. The latest report in the TSAM series released at The Summit for Asset Management (TSAM) in New York today, explores the evolving role of compliance, regulation and its implications for the future of the asset management industry.

The majority of respondents (68%) anticipate that a greater proportion of their organization’s financial resources will be dedicated to compliance in the coming years. Furthermore, more than one third of asset managers (36%) believe that their firm’s compliance budget will account for more than five percent of revenues within the next five years. This increase in compliance investment is likely to be driven by the increasing regulatory burden of new regulations, such as MiFID II. Although an EU regulation, four in five (80%) of respondent organizations – over half of which were North American headquartered – claim to have been impacted to some extent. Indeed, one in four (25%) of those surveyed said that MiFID II presents a significant challenge for their business, while 15% said it had negatively impacted their competitiveness. The vast majority of respondents believe that more regulation is on its way with 85% saying they believe the regulatory burden will increase over the next five years.

“The regulatory landscape for asset management has been in constant flux since the financial crisis began a decade ago,” said James Hatwell, Content Producer at Osney Media. “As such, it is no surprise that many of our survey respondents believe compliance costs will continue to rise in the coming years. As new technologies begin to take center stage, firms are presented with both opportunities for cost-savings and additional compliance challenges. It will be interesting to see which firms can make the most of these emerging platforms.”

Additional findings from the report include:

• When it comes to MiFID II, one in four (25%) feel that it represents a significant challenge to their business. A slightly smaller pool (15%) believe that is has negatively impacted the competitiveness of their business.
• 76% have automated or outsourced at least some compliance functions.
• Over half of those polled (58%) intend to outsource or automate more compliance functions in the next five years.
• Of the emerging technologies presented, 30% believe robotic process automation (RPA) and machine learning/AI will have the biggest impact on the compliance function of their organizations.
• One in four (26%) do not believe technology will dramatically alter the compliance function.
• Speaking of emerging platforms, firms that use social media to communicate with clients reported most often using LinkedIn (65%) and Twitter (52%) to do so.

Bill Haynes, CEO and founder of BackBay Communications, the financial services marketing and communications consultancy that conducted the research, said: “With the advent of regulations like GDPR and MiFID II, it’s become clear that many firms are still unsure of how to best meet the ever-changing regulatory standard and what technology’s role should be. These uncertainties also present great opportunities for asset managers to proactively put the processes in place to make the most of what these new technologies and platforms have to offer in terms of client service and engagement. Although it poses a challenge for asset managers, this survey and others like it provide valuable insights to track the change.”

To access the full report, visit https://www.tsam.net/insights/asset-managers-expect-compliance-expenditure-and-regulatory-burden-to-increase-over-next-five-years/.

Survey Methodology:
BackBay Communications and Osney Media conducted an online survey of senior decision-makers at asset management companies between 17th May and 5th June 2018. The survey was completed by 36 respondents from across all areas of operations with over half (61%) having responsibility for risk management, client reporting or compliance. Companies ranged in size from boutiques with less than $1 billion assets under management (AUM) to global firms with an AUM of over $1 trillion.

About OsneyMedia
Osney Media is a provider of world class learning and networking events. Specialising within Financial Services, it hosts The Summit for Asset Management (TSAM) – a global series of conferences taking place in New York, Boston, London and Hong Kong. TSAM brings together stakeholders from across asset management and the wider buy-side community, in addition to the industry’s leading service and solution providers. Catered for professionals across the value-chain of the business, TSAM co-locates six conferences focused on: Technology & Operations; Data Management; Marketing & Sales Communications; Client Reporting & Communications; Performance & Risk; Regulations & Compliance.

In addition to these events, Osney Media host two key industry groups: The Performance & Risk Association (PRA) and Ops50.

For more information, please contact us at info@osneymedia.com or call the main switchboard on +44(0) 207 336 4600.

About BackBay Communications
BackBay Communications is a strategic branding, marketing and public relations firm focused on the financial services sector including financial technology companies, asset managers, investment advisors and private equity firms. BackBay takes a brand-centric approach to developing messaging and building integrated communications programs.

BackBay offers a unique combination of content and creativity. BackBay’s services include public relations, branding, website development, marketing materials, videos, advertising and social media. BackBay is highly regarded for its thought leadership initiatives and relationships with the major business media. With offices in Boston, London and New York, and international agency partnerships, BackBay serves financial and professional services companies around the world.

Contacts

BackBay Communications
Hayley Reissfelder, +1-617-391-0764
hayley.reissfelder@backbaycommunications.com

BackBay Communications
Ryan Will, +1-617-391-0795
ryan.will@backbaycommunications.com