Private markets firms are increasingly using social media to draw in a new generation of high-net-worth and private wealth investors, a recent report has highlighted.
Amid an increasingly democratisatised industry, private markets firms are turning to online platforms to reinforce their brand, reputation and stakeholder relationships, Greenbrook’s inaugural Private Markets Digital Report found.
The report valuated the digital strategies of 130 leading firms across private equity, private credit and real assets to reveal the vital role social media – especially LinkedIn – played in building reputational value.
While most firms are investing in social media, only some leverage these platforms effectively to build their brands and engage a changing stakeholder audience, Greenbrook’s analysis found.
Leading companies like Blackstone, Brookfield, and EQT are at the forefront of this shift, adopting a more engaging and insightful communication style, moving away from their traditional institutional tone.
LinkedIn: The industry’s platform of choice
LinkedIn is by some margin the most used social media tool among private market firms, the report found, noting that 95 per cent have an active presence on the platform.
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Stakeholder interest in corporate communications on LinkedIn has surged, with firms experiencing follower growth of nearly 50 per cent on average in the past year.
Private markets - investment vehicles beyond publicly listed stocks and bonds - are using LinkedIn to engage a diverse audience, including institutional investors, high-net-worth individuals, employees and prospective talent as they jostle for market positioning, Greenbrook suggested.
What’s behind the growth in social media numbers?
Individual investors are becoming a much more important source of capital for private markets
Private equity and other lucrative forms of private markets investment are becoming more ‘democratised’ with trillions of dollars of opportunities expected to open up to high-net-worth individuals thanks to regulatory changes, higher interest rates and tighter monetary policy. Previously private markets were largely only accessible to big institutions such as pension funds, but now the entry price point has fallen from millions of dollars to something closer to $10,000.
[See also: the Spear’s ranking of the best reputation lawyers, 2024]
Private markets firms and executives are seeking to enhance their public profiles through social media platforms as their stakeholders diversify.
Spear's Top Flight reputation manager and managing partner of Greenbrook, Andrew Honnor said: ‘We are witnessing a fundamental change in how private markets firms engage with investors, management teams and other audiences.'
‘As their stakeholders become increasingly dispersed, firms are adapting their digital strategies to enhance accessibility, engagement and differentiation. A greater focus on digital channels is especially key in the current challenging and competitive fundraising environment,' he continued.
Honnor said the shift was 'particularly critical in the current challenging fundraising environment, where competition is fierce and differentiation is essential'.
'Effective digital communication is a powerful tool that enables firms to showcase their expertise, building trust, credibility and relevance for the long term,' he said. 'Digital channels, like LinkedIn, allow firms to connect with LPs and other key stakeholders directly and efficiently.
'Private markets firms are meeting stakeholders where they are most active – whether on social media or through other digital touchpoints – building deeper connections and fostering immediacy in their communication as a result,' he added.
Who are the most active social media users?
The report identifies top performers in digital engagement across asset classes. Private equity leaders include TPG, General Atlantic, and EQT Group, while KKR, Ares Management and Tikehau Capital stand out in private credit. In real assets, Blackstone, Brookfield Asset Management, and Actis lead the way.
Investment and deal announcements account for 20 per cent of LinkedIn posts, followed by corporate updates and team news. Thought leadership, although less prevalent at 14 per cent, remains critical for establishing authority and credibility, Greenbrook said.
[See also: why Schillings is branching out into strategic communications]
Branded images and graphics are the most popular content format, with article links and videos close behind. Corporate milestones, such as fund closings and office openings, generate the highest engagement, proving that targeted, visually engaging content resonates best.
Private equity firms were the most active, posting an average of eight times per month, but real assets firms see the highest engagement per post. Private credit firms posted less frequently, but 83 per cent used video and 56 per cent sharing thought leadership. This attention to quality is paying off, as private credit firms boast the highest follower growth rate at 71.8 per cent.
