The private equity industry is contending with its worst fundraising period since the throes of the pandemic five years ago. Uncertainty in US monetary and fiscal policy, and the turbulence it creates in global markets, has kept dealmakers on the sidelines, slowing the pace of exits. In this environment, the competition for capital is intensifying. The fight isn’t entirely fair, though. When investors signal greater aversion to risk, institutions that inspire trust tend to win the spoils. Even in this historically tough environment, some firms have closed multibillion-dollar funds. Institutional trust often depends heavily on historical performance—and this performance must be communicated effectively. Funds with a track record of consistently and proactively telling authentic stories about their performance, expertise, and differentiating traits have a greater chance of rising above the fray. No time to retreat It’s a mistake to see this lull in fundraising as a time to retreat from external communication. While that may be tough advice to accept for smaller and lower-middle market funds that lack the media budgets of their larger competitors, they often have a more urgent need to tell their success stories loudly. They face the same pressures as larger firms to generate returns, execute creative value creation strategies, and even lower GP rates. But as smaller competitors, they don’t have the same name recognition and extensive client relationships as larger firms. Meanwhile, many of their larger peers continue to invest in their reputations. According to a recent report from Magellan Advisory Partners, hiring at PE firms accelerated in the first half of this year, led by marketing roles, alongside fundraising and investor relations. It’s a reflection of what LPs want in a fund: transparency, predictability, confidence in a firm’s strategy and people. Funds must tell their stories consistently, proactively, and authentically. Those that don’t risk losing ground. PR and marketing tactics to stretch budgets The good news is that multimillion-dollar budgets aren’t necessary to make a significant positive impact on a PE firm’s digital footprint. Success requires a commitment to engaging with and learning from your audience. Today, it’s easier than ever to cost effectively demonstrate commitment. A few tactics that don’t require huge spending:

• Targeted media outreach: Media relations is still seen by too many as a vanity project. It’s not. It’s about establishing credibility and earning trust with key stakeholders. It’s also incredibly cost-efficient. One well-positioned quote or deal announcement in a widely read industry publication can lead to additional promotions on social media channels or direct communications with investors.
  Journalists often seek expert sources to interview through dedicated online platforms and forums, many of which are free or have a relatively low cost, facilitating easy connections for a wide range of queries. A focused approach matching unique expertise with strategic trade outlets and journalists can enable a media relations plan to pay for itself many times over, and quickly at that.


• Content audit for traditional and AI-driven search: Whereas search engine optimization (SEO) was once a cornerstone for digital marketing strategies, AI tools have officially ushered in the era of generative engine optimization, or GEO. That means content needs not only to be optimized for traditional search engines, but also to be optimized for AI chatbots that pull and return responses to user queries.
  A thorough audit of website content—whitepapers, blog posts, or multimedia content—can help identify ways to optimize and reach web users regardless of their preferred research method.


• Targeted LinkedIn campaigns: LinkedIn has proven to be a cost-effective and simple way to generate viewpoints and conversations within a given network. What is the biggest challenge keeping LPs up at night? What industry do they anticipate will be the next big thing?
  The insights gathered from a quick poll, short or long-form post, or even a reshare of an interesting post can be the inception of tailored email marketing, thought leadership, or even a story idea for a new journalist contact, focusing on the issues that matter right now.


• Repurpose all content: Developing owned content is both time and cost-intensive, so it is important to maximize its value. Take the content marketing oath: thou shalt not create content for one purpose. Recycling content developed for social posting, video development, client alerts, or blog posts across all owned channels creates a virtuous cycle.

Meaningful communication with LPs As evidenced by hiring data from Magellan, relationship management has emerged as a top priority for the industry. LPs want greater and more meaningful touch points. In this environment, reputation management cannot be an afterthought. In part, because it is interlinked with relationship management. Each successful effort to enhance a firm’s reputation—such as media placements, fresh and optimized thought leadership content, and social media campaigns—can be an opportunity to initiate deeper engagement with LPs. When investment dollars are scarce, those engagements become more valuable.