Effective reputation management in the digital landscape
PRIVATE EQUITY
N7 CONSULTING GROUP
Monday, 9 September 13
•!Between 2004 to 2006, employment of PE increased to 1.2m (8% of private sector);
•!The Financial Crisis in 2007 was a tu...
Private Equity:
Reputation Management Regulations
According to the regulations imposed by the
BVCA, Private Equity Funds m...
Private Equity:
Importance of Reputation
Stephen	
  McGree,	
  
Execu(ve	
  Director	
  
‘’I	
  shouldn’t	
  have	
  to	
 ...
Private Equity:
Current Stance of Reputation
30%
48%
23%
Journalists Opinion
Poor
Fair
Good
Excellent
Source: BackBay Comm...
Reputation Management:
Main Issues
In crisis situations, PE
do not ready for dialog
with customers and
immediate reaction....
Reputation Management:
Role of Digital Media in PE funds
86%
of investors
say
Online sources such as
social networks and
b...
Digital Reputation Benchmark
Monday, 9 September 13
Benchmarking:
PE Funds
The Digital Marketing Benchmark identifies the digital activities of the following 15 funds:
Monday,...
Benchmarking:
Impact of channels on reputation
20%
25%
27%
28%
Communications activity (28%): number and
frequency of pres...
Benchmarking:
Results Brief
2.9/5
average score
The Private Equity
industry on the whole
scores only moderately in
terms o...
Strategy Recommendations
Monday, 9 September 13
Digital Reputation Strategy
Branding
Personal
Relations
Consumer
Education
"lear articulation of firm
strategy, goals, posi...
Channels andTools
Social Media
Website and
Communication
Activity
Search
•!Use website as the main
touchpoint and provide
...
•!Website: Use a variety of content to educate and promote transparency: case studies,
educational content, press releases...
ThankYou!
Monday, 9 September 13
Upcoming SlideShare
Loading in …5
×

Private Equity: Digital Reputation Management

520 views

Published on

Published in: Economy & Finance, Business
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
520
On SlideShare
0
From Embeds
0
Number of Embeds
13
Actions
Shares
0
Downloads
11
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Private Equity: Digital Reputation Management

  1. 1. Effective reputation management in the digital landscape PRIVATE EQUITY N7 CONSULTING GROUP Monday, 9 September 13
  2. 2. •!Between 2004 to 2006, employment of PE increased to 1.2m (8% of private sector); •!The Financial Crisis in 2007 was a turning point for the PE industry: - PE received a lot of negative attention due to the failure to explain what it does; - PE managers have given the industry the image of ‘job-destroying vultures’; - PE funds also received negative publicity of abusing tax loopholes. Private Equity: Industry Overview Monday, 9 September 13
  3. 3. Private Equity: Reputation Management Regulations According to the regulations imposed by the BVCA, Private Equity Funds must: •!Disclose their ownership structures, investment approaches and portfolio; •!Regularly provide data to the BVCA and the EVCA; •!Effectively communicate with employees in timely manner during periods of strategic change. •!Disclose the financials and activities of portfolio companies, including: annual report, accounts, and a quarterly summary of the major developments. Monday, 9 September 13
  4. 4. Private Equity: Importance of Reputation Stephen  McGree,   Execu(ve  Director   ‘’I  shouldn’t  have  to  spend   so  much  (me  ‘selling’  private   equity  to  business  owners.   For certain companies, private equity is clearly the best solution”. Chris/ne  Croissant,   Managing  Director ‘’Reputa(on  helps  see  more   transac(ons,  win  more  deals,   garner  more  investors,  aCract   and  retain  excellent  employees,   and  broaden  its  pool  of       partner  lenders’’. Mark  Jones,   Partner ‘’Firm’s  reputa(on  can  be  a   key  reason  that  a  firm  gets  to   see  a  deal  in  the  first  place,is   selected  to  come  meet   management,  and  is   chosen  by  the  seller’’. Monday, 9 September 13
  5. 5. Private Equity: Current Stance of Reputation 30% 48% 23% Journalists Opinion Poor Fair Good Excellent Source: BackBay Communications, 2013 •!Journalists: No journalists believe that PE firms are excellent communicators; 23% believe their communication is poor; •!Investors: The overall opinion PE firm is low compared with other industries. The key issue is the manger’s lack of integrity around the deal process. Hellman & Friedman Advent International Berkshire Partners CVC Carlyle Apollo EQT Blackstone Bain Capital Bridgepoint Cinven Apax TPG Permira KKR 3i -50 -37.5 -25 -12.5 0 12.5 25 37.5 Investors Opinion Source: Gracechurch Consulting, 2013 Monday, 9 September 13
  6. 6. Reputation Management: Main Issues In crisis situations, PE do not ready for dialog with customers and immediate reaction. PE funds are unable to publish timely news on buyouts and exits. Timeliness Transparency PE funds do not clearly convey their fund’s approach, investment criteria, objectives etc. Expertise PE do not develop and publicize industry insights and trends regularly. Team PE funds do not show investors the integrity of the management team. Crisis Readiness Monday, 9 September 13
  7. 7. Reputation Management: Role of Digital Media in PE funds 86% of investors say Online sources such as social networks and blogs have become more important since 2012. 24% of investors use Social media to engage with private equity funds. 30% of investors have Accounts on Twitter and 12% make investment decision after reading Twitter. Company blogs regularly and 24% make investment after reading a blog. 52% of investors read -13% growth rate The importance of news release for reputation has declined since 2011. Golz J et al (2012) Monday, 9 September 13
  8. 8. Digital Reputation Benchmark Monday, 9 September 13
  9. 9. Benchmarking: PE Funds The Digital Marketing Benchmark identifies the digital activities of the following 15 funds: Monday, 9 September 13
  10. 10. Benchmarking: Impact of channels on reputation 20% 25% 27% 28% Communications activity (28%): number and frequency of press releases, additional touchpoints and presence of media contacts; Website (27%): presence of unique content, the level of transparency and multi-devices access; Social Media Visibility (25%): number of SM profiles and audience size, frequency of content, engagement rate and coherence of communications; Search (20%): correlation between search queries and SEO optimization. The channels and activities in consideration are: * Respective weights are achieved from the combined opinion of digital marketing and Private Equity Experts, 2013 Monday, 9 September 13
  11. 11. Benchmarking: Results Brief 2.9/5 average score The Private Equity industry on the whole scores only moderately in terms of digital reputation management. The Blackstone Group is the leader in terms of digital reputation (DRS: 3.762), with the use of all social media such as Facebook, LinkedIn, Twitter and, in particular, Youtube. All content are consistent and relevant. Most PE funds are currently utilising blogs, newsletters, reports and brochures to Engage with customers. However, funds often neglect to optimise their search activities, and do not use PPC. *The full benchmarking report is confidential to my client and will not be freely available at this stage. Monday, 9 September 13
  12. 12. Strategy Recommendations Monday, 9 September 13
  13. 13. Digital Reputation Strategy Branding Personal Relations Consumer Education "lear articulation of firm strategy, goals, positioning, investing approach, returns, team and investee portfolio. Personal communication with key partners: LP, investment banks and advisors, lenders etc. Demystify private equity via multimedia case studies and other educational content. Monday, 9 September 13
  14. 14. Channels andTools Social Media Website and Communication Activity Search •!Use website as the main touchpoint and provide transparent content; •!Uphold strong communin. activities and optimise content for newsletters, RSS feeds and mobile devices. •!Use a variety of different social media channels; •!Consistent content on social media and website; •!Use interactive content to engage and educate key target audiences. •!Implement SEO by general industry and brand keywords to increase traffic; •!Implement SEO by sectors’ keywords and use PPC to attract the attention of investors. 55% 25% 20% Monday, 9 September 13
  15. 15. •!Website: Use a variety of content to educate and promote transparency: case studies, educational content, press releases, brochures reports etc.; •!Social Media: Content should be consistent with communication, but provides engaging experience: industry news, forecasts, and interviews with team members. Content and Engagement Monday, 9 September 13
  16. 16. ThankYou! Monday, 9 September 13

×