Meeting audience expectations
It is critical that the most appropriate channels are used to ensure information is presented in a quick and easily accessible way. It is important that the information provided is easy to digest and understand, with tiered levels of detail that do not confuse wider stakeholders but instead enable them to gain the level of understanding required to build trust.
While there are some industry standards and guidelines (with more to come from the EU) for “what” information needs to be reported, there is very little help on “how” to communicate it. To ensure effective multi-channel communications we recommend focusing on who your primary audience is, the information they want, and how they want it delivered.
Audience-focused communications and reporting allow an ever-more demanding and varied stakeholder base to track performance in a format they are comfortable with. This builds trust and improves understanding of the potential future value of investments.
Sustainability/ESG
Sustainability/ESG is now only rarely out of the headlines, and investment firms must respond to the challenges of a fast-changing world. In 2023, there is now a stronger “responsible investing” culture within the Private Equity and Investment Management industry. ESG factors play an important role in initial investment decisions, and the development of businesses post-investment. Institutional investors are thus often under pressure to ensure that funds are invested in a responsible way and to then demonstrate this to their clients.
In this context, ESG communication and reporting is no longer an “add-on”. Private Equity and Investment Management firms need to communicate how ESG is integrated into all aspects of their culture, from the investment strategy, through to attracting, developing and retaining talent.
Ultimately, ESG-focused communications and reporting allow an ever-more demanding and varied stakeholder base to better understand the business and its track record. This builds trust, and supports the performance story and investment case.
Digital-first
The average financial analyst is less than 40 years old; a digital-savvy audience. It now definitely makes sense to take a digital-first approach to investor reporting and meet the need for quick and easily accessible information.
Digital-first communications are evolving; in 2023, fully accessible, online XBRL-tagged reporting and engaging video is replacing simple social content and PDFs. Digital-led communications must always meet both compliance and stakeholder needs, using the formats and channels that are most effective for each piece of information.
Meanwhile, digital-led reporting and communications technology is advancing to meet new compliance requirements. This creates new opportunities for firms to deliver more effective and efficient communications and to reach more stakeholders.
How we can help
With over 20 years’ experience in Private Equity and IR communications, we understand the challenges firms face in terms of both compliance and engagement. We aim to work closely as partners to help bring our clients’ investment case to life for all stakeholders, across all channels and media. Drop us a line to talk about your communications challenges.