Words: Simon Watkins
Private asset marketers must leverage their understanding of the customer to flourish in a post-pandemic economic environment.
Sustainability, long-term investment, and the power of storytelling are the keys to successful private asset marketing, the audience at Financial Promoter Live! heard this week.
Speakers at the conference session on private markets – “No More Easy Wins” – agreed the landscape was tougher than for the previous 15 years.
Stephen White, head of marketing at boutique investment group Redwheel, said fund raising has become harder, citing research from McKinsey that showed fund raising was down 22% in 2023. But he said the asset class was attracting new investors, including from private wealth and defined contribution pension schemes.
“Drilling down” to understand clients individually and get to know their specific needs that private markets could address is crucial, White said.
Estelle Bibby, head of marketing and communications at Cazenove Capital, said on-site visits to investee business had been hampered by the COVID crisis, but techniques – such as filmed case studies – had proven to be highly valuable and to have much greater longevity as a content asset.
With new investors being attracted to the class, there is an opportunity for firms to use education as a marketing tool – creating content that was informative for newcomers – and telling real stories of investments.
Sustainability was also highlighted as a huge opportunity for marketers. While private markets have in the past been seen as opaque, speakers on the panel argued that private market assets were in fact hugely suitable for responsible investors and in many cases could provide clearer evidence for ESG credentials than public market equities.
Harriet Pepper, senior channel marketing manager at Impax Asset Management, said: “Sustainability is about the long term and that suits private markets very well. You can very clearly show the impact you are having.”
However, Pepper added that marketers need strong methodologies to be able to back up those claims.
The easy wins for private markets may be in the past, but the panel were unanimous that with the right marketing strategy, there is still plenty to go for.