The Hidden Cost of Being Invisible in Private Equity... Part 1

Hey, it’s David

In a market where digital presence defines credibility, we took a deep dive into the online strategies used by roughly 100 private equity firms to gauge what’s working, what’s missing, and what it takes to stand out in a competitive landscape.

M&A from the Plane… You’re seated on a long-haul flight, prepping for tomorrow’s big meeting, but you’ve forgotten your headphones.

You can’t drown out the background noise, and hours of productivity slip away. It’s a small thing - headphones - but it can change the entire journey.

Now, think of your firm’s digital presence in the same way. The online space is crowded, and without a clear digital strategy, you’re inundated with noise, missing vital connections, insights and relationships. You really need your “tools” to help you stay focused and prosper in a cacophony of digital chatter.

Visibility in Private Equity is a Strategic Asset, Not Just an Expense

Our recent analysis of nearly 100 private equity groups revealed some surprising insights. With billions in assets, the real question isn’t if your PEG can afford a digital strategy; it’s what’s the tangible cost of being invisible to the deal-makers and partners actively shaping tomorrow’s market.

The Tangible Costs of Being Out of Sight

Your PEG is Invisible to High-Value Connections

Whether you realize it or not, everyday potential partners, sellers, or deal sources are searching and researching your PEG online, only to find competitors because your firm doesn’t show up in relevant searches.

• Data Insight: The average PEG Domain Authority in our research was only 19, while the average across other sectors ranges from 35 to 55. This limited visibility means your firm is essentially not showing up on Google.

• Hidden Cost: Every day you’re not visible online, competitors with even minimal digital strategies are being found first, capturing opportunities that could have been yours.

• Reflective Question: When you Google “Private Equity in [your city],” where does your firm rank? Are you at the top, or are others capturing that prime “seat?”

In-Person Networking: High-Cost and High-Effort, Limited Reach

While conferences and events are pivotal, they have high costs and limited duration. In contrast, an optimized digital presence offers a 24/7 connection. You don’t want your only impression to be for a few days at an event when your competitors are fostering connections online continuously.

• Data Insight: Only 3.6% of the PEGs in our research invest in paid online traffic, whereas a striking 84% of B2B companies do. Imagine the visibility gap this creates.

• Hidden Cost: Traditional networking limits you to the reach of those few days, while firms with an online presence are engaging potential partners every day, around the clock.

• Reflective Question: If two conferences a month with T&E cost you roughly $6,000, what’s your lead acquisition cost compared to a digital outreach strategy? Could online engagement lower your costs while increasing your reach?

Reaching the Next Generation of Deal-Makers

Tomorrow’s growth-oriented leaders are inherently digital, and without an engaged online presence, your firm risks appearing outdated to these rising stars.

• Data Insight: While 37% of PEGs in our research were active on LinkedIn, numbers drop sharply on other platforms. For a firm, this translates to missed opportunities, especially with the next wave of high-growth potential deal-makers.

• Hidden Cost: Without digital visibility, your firm may seem irrelevant to younger deal-makers who prioritize partners with thought leadership along with a strong online presence.

• Reflective Question: While your current direct contacts may be offline, consider your broader referral sources. Are the wealth advisors, attorneys, or accountants you interact with active on LinkedIn, Twitter/X or Facebook?

The Real Value of Digital Presence

Establishing a digital presence isn’t an expense, it’s a strategic move aimed at capturing growth and staying relevant. Over the next few weeks, we’ll share more from our research, including our new 60-second self-assessment tool, which offers a quick insight into your firm’s strengths and opportunities.

If you’re ready to explore the digital edge, let’s connect.

Are you enjoying the content we’re sharing from BoardSpire?

I’d love to hear from you, so I’d appreciate your feedback in this quick poll:

Thank you!

David