The investment ecosystem is full of various players, each with differing objectives, challenges, and considerations. But while many of these players could operate behind closed doors in the past, the public now demands more visibility.
As a result, executives and the companies they lead are increasingly committing more time to investment thought leadership.
We sat down with our Client Director, Sam Patchett, to explore exactly why.
Sam discussed how thought leadership can help PE firms, institutional investors, and start-ups stand out from competition and prevent crises, besides much else.
Sam Patchett (SP): Whether you’re a private equity firm seeking to acquire a new company or a tech start-up seeking funding, outperforming your competition is now tougher than ever.
Worldwide, there are now more than 5,000 PE firms, double the number a decade ago.
Meanwhile, the tech market has become oversaturated thanks to the AI-VC boom.
Besides this, economic turbulence has led institutional investors to become much more risk averse, resulting in a decline in business within high-risk sectors.
Additionally, rising pressures from ESG authorities and antitrust regulators compound anxieties further.
The list goes on.
Essentially, while thought leadership might have been a nice-to-have in the past, becoming a transparent and visible organisation is now a necessity.
This is the only way firms can set themselves apart, settle anxieties, and build credibility among their stakeholders.
SP: Investment thought leadership can benefit the smallest of start-ups right through to the biggest of institutions.
On one hand, start-ups gain a competitive advantage when pitching to investors who are drawn to confident changemakers.
On the other hand, large institutions benefit by injecting personality and having a face for the company, which can help them improve public trust.
Investment thought leadership can also appeal to portfolio managers who want to diversify their investments or bring more spotlight to the firms they already manage.
In all of these situations, positive outcomes can be achieved through a mix of strategic media coverage, social media campaigns, and high-quality multimedia.
SP: Investment thought leaders can comment on various issues such as regulation, consumer trends, or market dynamics, as long as what they have to say is both timely and novel.
Additionally, by being sector-specific they can showcase where their specialism lies and further carve out a niche.
For instance, an investment thought leader specialising in renewable energy might discuss the impact of recent government regulations on the solar power industry.
They could explore how these regulations are shaping consumer demand, influencing market dynamics, and driving investment trends within the sector to hint to their expertise.
Whatever the case, thought leaders just need to be wary of crafting a central message that isn't too vague nor too broad.
If thought leaders try to address too many issues at once, their insights can come across as tokenistic and insincere.
This why striking the right balance is crucial to ensuring their contributions are both meaningful and authentic.
SP: Investment leaders often put their heads down and keep quiet during difficult times.
However, this is usually the best window for them to establish seniority in the market.
Institutional investors might showcase their expertise by providing in-depth analysis, forecasts, and risk management insights that help others optimise their portfolios better.
Banks, meanwhile, can help consumers and less experienced investors demystify complex market conditions by sharing their knowledge in an easy-to-understand way.
By helping these groups make more informed investment decisions, all parties can build long term trust and loyalty.
SP: Thought leaders must always prioritise a multichannel strategy.
Limiting yourself to media engagement might seem natural to reach a greater audience and save time. However, this only risks blunting your impact.
If readers spot your coverage within business, finance, and trade press, they will likely look you up on LinkedIn to see who you are.
If there is little to no thought leadership content on your feed, you won't appear passionate about the issues you speak about.
By using LinkedIn often, you can also inject more personality into your content with anecdotes and tangible lessons to resonate more with your audiences on a deeper level.
Taking this approach and experimenting with the likes of podcasts and well-edited short-form videos are vital to thrive.
SP: Most importantly, you should never re-hash well-publicised stories and widely held opinions.
You always need to offer something completely different that provokes a healthy debate.
Do your research
Make a bold prediction
Suggest a hot take you know others will disagree on
This will lead to more engagement and help to gradually expand your reach.
Creativity is essential. So, don't worry about experimenting and refining your thought leadership strategy over time.
It's also crucial to leave the corporate jargon in the office or risk alienating your audiences.
If you're writing for a trade publication, you can delve deeper into specifics. However, being overly technical on other platforms is a big no.
You should always be able to summarise your thought leadership angle in a single sentence, so it's impactful and quick to grasp.
If you can't, consider revising your approach.
If you found this article interesting and live in the Middle East, you might also enjoy my article on Dubai's PR boom.
On the other hand, if you're an entertainment executive, read our media coverage about celebrity investors.