Author: Phil Flickinger
Over the past five years, there's been growing buzz about private equity (PE) firms seeking agencies' help. Whether they're looking to rebrand a portfolio company, accelerate their investments, or explore value creation, PE firms have been placing a premium on brand strategy and big ideas. I've had the privilege of working on strategy projects for PE entities during my years in the Bay Area and Copacino Fujikado has worked on privately-funded brand creation and rebranding projects too. These endeavors bring different expectations and dynamics to the table, and here are some important lessons we've learned:
When working with private equity, it's crucial to understand the financial dynamics at play. Your budget isn't coming from sales revenue: it's a generous gift, with strings attached. There is an expectation of generating a return on that money. Hence, you have a runway with a set amount of capital to work with, and once it's gone...it's gone.
Success in PE projects hinges on measurable outcomes. Establish clear KPIs at the outset of the partnership. Regular reporting meetings must be sacrosanct events on your calendars. They will demonstrate the value of your work and forge trust with your clients.
PE firms want Big Ideas that can turn around a struggling brand or successfully launch a new one. Agencies must be adept at creating compelling brand stories, but also be able to measure and optimize for tangible business outcomes. This means blending creative branding with data-driven performance marketing to ensure every campaign not only builds the brand but also delivers measurable results.
PE firms value strategic thinking that goes beyond creative flair. They need collaborators who understand business fundamentals and can align creative efforts with business goals. They want allies who can tame boards of directors with smart thinking. Embrace this consultative role. You need to be a strategic partner, not just an executor.
Design excellence is non-negotiable. PE firms expect top-notch design capabilities, and this isn't limited to graphic and digital design. Logos, websites and collateral are table stakes. You'll need to be able to generate brilliant brand and product names, and create design systems that inspire and inform a variety of other partners.
Private equity projects offer a unique opportunity for agencies to flex both their creative and strategic muscles. It's important to remember that the capital behind these ventures isn't coming from enigmatic zillionaires, but often from everyday individuals—people whose pension plans have put money into PE, people who have donated to endowments and foundations, etc. When we partner with PE firms, we're not just helping a company; we're also contributing to the financial futures of real people. This adds an extra layer of responsibility, making it even more critical for an agency to bring its A-game to these formative opportunities.