A brand like no other

The carousel of fund managers entering and leaving limited partners’ offices all claiming to be “differentiated” from the competition may not be as unique as they think. Consider the phrase JAMMBO (an unflattering nickname used in the US for “just another mid-market buyout shop”) when reflecting on your brand. 

That was one of the key takeaways at a recent panel discussion on branding hosted by BackBay Communications, a PR firm, and Axial, a networking service provider. And it seems their branding message is being well received by the private equity ecosystem. 

At the event BackBay provided preliminary highlights from a survey of 290 professionals from GPs, LPs and other industry professionals about the importance of branding. What they found is that 65 percent of respondents believe having a strong brand is “very important” to a private equity firm’s success. One-third of respondents said branding was at least “somewhat important” for GPs. 

Survey respondents said a strong brand is most valuable in increasing visibility with investors, dealmakers and job seekers – three advantages PE Manager explored in a previous comment letter that argued GPs should proactively engage the media and create more distinct logos, among other considerations, as part of their branding strategy. At the event, we picked up a few more novel tips detailed below: 

Don’t sound like a commercial on-stage: Many GPs use conferences and industry events to enhance their brand on-stage. It’s an effective (and inexpensive) way to broadcast the firm’s message to a wide audience, but be careful not to be overt in your brand building. Delegates or members of the press come to hear thought leadership and expertise, not a 45-second spiel on the firm or its market niche – the audience will see right through it. 

Brand the firm, not the rainmaker: Some firms make the mistake of relying too heavily on a few “key men” to separate themselves from the competition, multiple attendees speaking with PEM at the event agreed. A small group of deal professionals too wedded to the firm’s name in the minds of investors will be a disadvantage at the time of succession planning. Greater exposure of junior-level professionals during annual conferences, for example, can result in LPs associating the firm’s brand more with the next generation of rainmakers. 

Avoid strong comparisons: When thinking about building the firm’s brand, a gut instinct is to see how others have done it. But that can be a mistake, according to one public relations specialist in attendance. Reviewing the work of others can lead to a replication in strategy (whether consciously or not). Firms that copycat too much end up building a status quo, the very opposite of distinguishing yourself. The PR said a better strategy is to consult outside stakeholders (i.e., placement agents, investors, bankers) to understand the firm’s current brand and build what you want to achieve from there. 

LPs, dealmakers and graduates often rely on word of mouth when searching fund managers. Make sure your shop isn’t JAMMBO, or risk losing out.