We are a creative integrated marketing consultancy specialising in 4 business areas: Business Services, Financial Services, Automotive Aftermarket and Recruitment Advertising. These blogs tell of some of our experiences working in these business areas.
14 August 2013
As a communications agency specialising in asset management marketing, differentiation is something that interests us intensely. With over 5,000 private equity firms (GPs) in Central America and the UK, how can GPs stand out?
On the way up, GPs can be differentiated by funds under management. For example, when Advent International became the 10th largest private equity firm worldwide having closed a new global buyout fund and dedicated Latin America, Central America and CEE funds, it was a milestone for them. It said as much about the success of management and the pace and direction of travel, as it did about the attractiveness of the asset class and appetite among investors (LPs). Certainly, we had a lot to leverage when creating a global ad campaign.
Arguably LPs examining the top 10 global GPs by funds under management will have a tougher time differentiating between the fund managers and justifying to investment committees why they favour one over another.
Here are some differentiators that all GPs can strive for:
Consistent deal origination and LP marketing management that does more than follow the fund cycle and is of a high standard.
Reputation among financial intermediaries
Benchmark qualitative research and carefully considered reciprocity.
Openness of names of participating LPs
It is possible to identify which LPs are investing where, so GPs should be prepared to publish these details where investors have no objection.
Certainty of close of investment quickly
Demonstrable evidence of investment focus, investment process and integrity of deal team.
Operate like a strategic buyer
Responsible board participation, sensitive fiduciary and operating policy: think long term.
Openness and tone of voice
Private equity is, by nature, private. However, how deal and operating teams communicate externally and the values they aspire to doesn't have to be buried or hidden.
Outsource administration and non core functions
It is what LPs want.
Chris Abraham leads AEPadvertising.com. One of the most experienced alternative asset marketing specialists in Europe working on local and global mandates.