A grand stand

Let’s be honest — private equity general partners are not always great on stage. The good news is, they don’t have to be. GPs are judged by their internal rate of return, not on whether they can warm up a crowd. Yet private equity remains a relationship-driven business and conferences offer an invaluable opportunity to meet new people and raise the profile of the team among thought leaders.
So how can firms make the most out of their conference appearances?
In short, it’s the quality of people that make any event worth participating in. Firms should determine what role conferences should play in their broader marketing strategy, and what exactly their target audience is, whether limited partners or industry CEOs. GPs should vet the conference organizers to ensure the stature and content of the program are worth a partner’s time.
The most effective conference appearances cultivate relationships and leave impressions with people a firm might not otherwise reach.
Of course, making that impression involves speaking on a topic with a distinct view and of genuine value to the audience. Conference attendees are particularly averse to sales pitches from the podium.
“Too often GPs think about the forum as opposed to thinking about the audience it might reach and the objective of speaking,” says John Higgins, a long time communications adviser to the industry, and currently a partner at the global search consultancy, CT Partners. “Everybody wants to appear at [private equity industry conference] Super Return. I don’t know why. It’s just a marketing jamboree for peers and service providers. If you want to raise capital, talk to LPs. If you want to source deals, talk to sellers and so on.”
Some firms are quite sensitive in this respect. One private equity conference organizer explains that unless there are confirmed LPs or industry CEOs attending, many GPs pass on the opportunity to speak.
David Hoffman of the New York-based Charterhouse Group, looks for events that would raise the firm’s profile in the corporate world. “With our model, where we look for the jockey before the horse. It’s crucial to get out there and speak to as many managers as possible,” says Hoffman. “We’re looking to speak in front of the executives with fresh deal or sector ideas.” Hoffman will also look for chances to touch base with his peers outside of the Northeast, where there may be fresh perspective. “It’s all about reaching an audience we wouldn’t have in our exiting networks,” says Hoffman.
In determining the value of a given event, Charles van Horne, managing director at New York fund of funds Abbott Capital, prefers conferences hosted by organizations with a separate media arm. “This offers the chance for wider exposure as their publications will likely cover the event,” says van Horne. Another marketing executive warns that poor-quality conference often reveal themselves in advance by having cliché topics for panels, or relying on the invited partner to recommend other peers to speak. “You want to ensure that the event is attracting plenty of firms of equal stature,” says van Horne. That said, it is possible to concentrate too much on the content or speakers of an event. Even if Stephen Schwarzman isn’t giving the keynote, and even if the opening panel is entitled “What’s hot in private equity now?” the conference may still be worth the partners’ time. “Even mediocre forums can present an opportunity to reach your target audience,” says Higgins. He suggests putting out a press release announcing the appearance and posting the speech online afterwards. “And of course- you should work the room, both before and after your presentation,” says Higgins. “Give yourself the time to mingle with the participants as that one key contact might be in the crowd.”
Regardless of the stature of the conference, the presentation should offer a unique perspective and feature intelligence valuable to the crowd. “Don’t agree to speak unless you’ve got a powerful message,” warns Higgins.
Abbott Capital makes it a priority to choose panels that allow the partners to share some interesting stories and a strong opinion. “As a fund of funds we like talking about where we can add value, like alignment of interest, given that we work on both sides of the LP/GP divide,” says van Horne.
The best test may be a version of the golden rule, where partners put themselves in the shoes of their audience. “I certainly know I don’t want to sit for a speech while a peer simply touts their latest exit and explains their investment criteria,” says Hoffman. There may be a time and place for that pitch, but most industry observers agree it’s not on the conference stage.