From increased competition to evolving expectations from investors to upcoming SEC reform, private equity firms are facing more challenges than ever.
Add marketing to the mix, and things only get more complicated.
For firms looking to market private equity funds to institutions and high-net-worth individuals (HNWIs), the trick becomes developing a targeted approach that will showcase what sets your fund apart, generate leads, and bring new investors into the fold.
Not sure how to get started? Here are our best tips for marketing private equity funds.
6 Tips for Marketing Private Equity Funds
1. Rely on the Strength of Your Reputation
In private equity, your firm’s reputation is paramount. So make it shine.
Do you have significant expertise in a specific industry? Show it off! A track record to be proud of? Highlight it! (Just make sure you’re doing so in compliance with SEC marketing rules on advertising performance data.)
Institutional investors and HNWIs aren’t in a rush. They’re deliberate, discerning, and want to invest with someone with a sterling reputation and a proven ability to get results.
2. Meet Investors on Their Own Turf
There’s absolutely a place for digital business development tactics like cold emails, content marketing, and even reaching out to potential clients on LinkedIn.
But where you can, meeting investors in person, organically, can yield powerful results.
It might take some sleuthing. Where do your biggest targets convene? Do they frequent chamber of commerce events, industry-specific conferences or networking events for professional associations? If so, you should be there, too.
When you’re able to meet potential investors in their natural habitat, it becomes easier to build meaningful business relationships.
3. Ask Current Clients to Make the Introductions
Word-of-mouth marketing works — and high-net-worth clients are no exception.
Every business is better with a referral program, including private equity firms. By asking your current clients if they have anyone they’d be willing to recommend the fund to, you’re generating leads that you might not otherwise have access to.
But remember: You don’t necessarily want just anyone to invest in your fund, and neither do the affluent investors you already work with. Thus, ensure to include a qualifying statement when soliciting current clients for outside recommendations. For example: “If you know anyone you’d personally feel comfortable doing business with …”
4. Develop In-Depth Thought Leadership Content
White papers, case studies, research reports and blogs can all help showcase your firm’s insight and expertise. These thought leadership pieces establish you as an expert in your field, signal that you have your finger on the pulse of the industry(ies) you invest in, and demonstrate why they can trust your fund to make prudent, profitable decisions.
Share your thought leadership content far and wide – on your website and social media pages, in relevant industry publications, or even as a guest post on another business’s website to help you reach potential investors.
5. Use a Personalized Approach
Each investor is going to have their own goals, preferences, and risk tolerance. While prospective clients for a particular fund might have similar characteristics, they probably won’t all fit into the exact same mold.
Instead, take the time to understand what each potential client is looking for on an individual basis and tailor your pitch accordingly. When you take the time to listen to what they have to say, you’ll be better suited to give them exactly what they need.
6. Nurture Leads
Some clients can take years to come to a boil. So once you’ve generate leads, nurture them by educating them.
That doesn’t just mean providing an ongoing stream of information about their fund — it means providing value through financial wisdom. Explore a range of topics — the psychology of investing, or how to properly utilize debt, or applying marathon training tactics to a business mindset.
When it comes to marketing to institutional and HNW clients, you have to be ready to play the long game.
Set Your Funds Up for Success!
In the private equity industry, challenges are everywhere. Marketing doesn’t have to be one of them! When you adopt these tried and true strategies, institutions and HNWIs will sit up and take notice.
As Cleveland’s premiere financial services marketing agency, Mischa Communications has the skills to market your private equity firm (and some awards to prove it). How can we help?