We all know the world is increasingly networked and connected. And businesses realize the importance of using compelling content to attract clients and opportunities. Yet business development pros working in PE have been slower adopters of social media marketing. Despite what traditional deal professionals may believe, social media enables private equity firms to more efficiently generate a steady flow of investment opportunities.
Here’s why I think social media is a valuable asset to your investment firm:
Strengthen your deal flow
Researchers have studied how social media can be a valuable tool for deal professionals. In a 2010 study conducted by Harvard Business Review, researchers concluded that social media boosted deal flow because it made investors more aware of others and the types of deals they were seeking. Sharing deals and investment opportunities encouraged others to do the same. Investors pooled their opportunities which allowed them to access deals that they otherwise would not have been aware of.
Personally, I’ve followed this “give-to-get” mentality and it has helped me become a prolific business developer with a robust referral network. Our platform expects our deal sourcing machine to uncover 50 to 80 opportunities a month. My need for reliable and recurring deal flow has never been more important especially given the competitive nature of today’s market.
Improve your new business outreach
Another advantage of social media is that it can be a passive form of outreach. Email blasts can be intrusive and spam filters do a better job than ever keeping salespeople out of your inbox. However, once you establish your expertise and develop an online presence, the content you develop and curate while help interested parties seek you out, rather than the other way around.
If this sounds too good to be true, it isn’t. Take Chicago-based Parker Gale, a PE firm that produces a great podcast with a cult-like following. Their PE Funcast (click here for podcast) sees regular updates, sometimes as often as five times a week. Topics seem to always remain relevant, touching on a range of questions from the value of getting an MBA to evaluating and developing portfolio companies. To date, PE Funcast has more followers than Parker Gale’s own Twitter account. This is proof that content marketing remains key and should be part of any social media strategy. [Read more…]