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There are many restrictions on private equity fund advertising and marketing. Private equity firms do not contact average, non-accredited investors to invest with their funds. While this means private equity firms will not take out TV or radio commercials, there are many more gray areas where many private equity firms are now self-promoting or more subtly establishing their branding. To gain access to the contact details for thousands of private equity investors check out the Private Equity Investor Database. I never provide financial advice on PrivateEquityBlogger.com and this is surely not a recommended or list of ―safe‖ ways to market your fund. No matter what you hear from a consultant or at a conference always check with your own compliance officer or legal counsel before taking any action. Here is a list of ways in which funds are currently marketing their strategies:
• Websites – Many funds have websites describing their firm and investment
strategy/focus. Some go as far as to explain what their strategy is in detail along with their current assets under management and who is on their portfolio management team. These websites may cost between $1,000 and $25,000 to create and generally $30- 500/month to maintain. A few private equity managers or mid level employees even run blogs.
• Public Relations Professionals – Many private equity firms actively engage public
relations firms to help increase the number of quotes or in-story mentions their firm’s executives get placed within mainstream media outlets. These consultants may work on some one-off crisis management projects for a premium but generally prefer $2-
12k/month retainers instead.
• Book Publishing – One of the many ways which private equity managers are
promoting their businesses is through publishing books on the topic of private equity or business more generally. These books may be on industry trends, portfolio
management theories or one’s experience in the industry. Many professionals within the wealth management space are hungry to learn more about private equity and books which bridge the gap between what can be learned within editorial articles versus an educational book. Some niche publishers will publish books by private equity managers but most avoid publishing anyone who doesn’t have a marketing network or a real ―media brand‖ behind their name which has been built up for several years. Due to this fact some private equity managers self-publish their own books through programs such as Lulu.com.
• Conferences – One of the ways in which private equity managers market themselves
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could discuss marketing and sales, private equity in general or be on niche subjects related to what the firm invests in such as technology or alternative energy. This
strategy can be highly effective because it can support and serve as a direct marketing arm for the strategies mentioned above. Most speaking engagements do not pay, but many firms will at least cover your expenses and display your logo and name
prominently at the event. Broker dealer conferences can also be productive events for hedge fund managers to attend. If you can gain a distribution agreement with HNW- focused broker-dealer and obtain a speaking engagement or booth at their event it can be a great way to get your foot in the door with some new face-to-face relationships with HNW advisors with the specific broker-deal group holding the conference.
• External Consultants – While not technically advertising, thousands of firms choose
to use the help of external consultants to help market their private equity funds. These consultants could be experts within raising capital within a specific channel, creating marketing materials or creating a marketing message. Those consultants who take on whole or partial responsibility for raising assets on behalf of the private equity manager are often referred to as third party marketers.
• Television Interviews - It is becoming increasingly more common for private equity
partners to appear on CNBC, Bloomberg or Fox Business to provide commentary. This is a powerful way to reach a broad audience and establish your brand. A capable public relations firm will be able to get you interviews and opportunities to comment on the financial talk of the day. With more and more viewers shifting to online resources, there are a great number of online media outlets like the Deal which regularly interview
private equity managers.
Database - Another way to boost your brand recognition and market yourself to private
equity investors is to make sure that your firm is included in private equity directories and databases like the Private Equity Directory
Naturally, it is important to complete thorough due diligence upon any groups which you ask to represent you in the market for both effectiveness and compliance reasons. Do not simply sign-up with someone to represent your firm simply because they promise that they can raise the assets which you have been looking to raise.
There are many other ways to market and grow your private equity fund which are not related to advertising or traditional marketing but most of these fall under more
traditional means or external consultants.