Private equity firms struggle to stand out, study finds

Most of the UK’s largest private equity firms rely on generic messaging and provide limited transparency in their external communications, according to new research from corporate communications agency Friend Studio.

The inaugural Private Equity Communications Index assessed the external communications of the UK’s 20 largest private equity firms, finding that only 25 per cent produced content judged to be of a high standard. The study evaluated digital presence and corporate reporting across five measures, including narrative and content quality.

Despite pursuing different investment strategies, many firms used near-identical language, with phrases such as “strong track record” and “value creation” appearing repeatedly. Friend Studio said this made it difficult for firms to distinguish themselves.

Transparency emerged as a particular weakness, with 65 per cent of firms scoring poorly for explaining fund performance and how they create value. While ESG reporting was generally well developed, it was often presented separately from firms’ core investment narratives.

Cinven, TowerBrook, Coller Capital, Oakley Capital and Hg were identified as the strongest communicators, while InvestIndustrial, Bridgepoint, Five Arrows, Vitruvian Partners and CapVest ranked among the weakest.

The findings come as private equity’s role in the economy continues to grow. Private equity and venture capital-backed businesses employ around 2.5 million people in the UK and contribute close to £200bn to GDP, increasing scrutiny from regulators and the public.

Nicholas White, communications director at Friend Studio and co-author of the research, said firms making the same claims about partnering with management teams and building better businesses risk becoming “wallpaper”.

The Private Equity Communications Index evaluated firms using publicly available websites and corporate reports.