CorpComms Magazine

Private equity financiers are upping their spending on branding, according to a new survey produced by BackBay and Pitchbook.

The study found that 99 per cent of those questioned view a private equity firm's brand as directly linked to a firm's success. When questioned in 2009 in a previous BackBay study, 93 per cent of the same audience held that view.

Fund of funds groups think branding is more important than other members of the private equity industry.

More than half of the survey's respondents said they had increased their investment in their marketing materials and website in the last 12 months. A similar proportion (54 per cent) would be continuing to increase investment in this area over the coming year.

Social media still appears to be a sticking point for many firms, ­ only seven per cent of those questioned claim to regularly make use of the likes of Twitter, Facebook, LinkedIn or YouTube to enhance their brand.

Just over a quarter of survey respondents said their firm was using social media in some way. Despite some reluctance, though, it would seem that greater use of social media by private equity firms remains likely. Nearly one third of those questioned said that while they did not use social media currently they would like to in the future.

The study surveyed 256 private equity professionals, limited partners, investment bankers, intermediaries, lawyers and consultants serving the private equity industry in the US and Europe concerning their attitude and approach to branding.

Graham Hearns, director of marketing and communications at private equity firm The Riverside Company, said: 'The industry has evolved from a model solely based on deal doing to one where a strong brand is absolutely essential.'

share me: del.icio.us | digg | reddit | Tweet