Branding Equity Capital

Abstract

Equity capital is not a commodity. It can be differentiated and therefore branded. Branding investment capital will increase its competitive advantage, make it more attractive, and allow it to command privileged access and/or premium returns. Branding capital is now a scattered and ad hoc activity, but will become increasingly important. The value of a capital brand can be assessed and enhanced. Those investors who realize this and energetically move to develop a strong brand for their investment capital will undoubtedly strengthen their competitive advantage in the marketplace. This article outlines the reasons why branding capital is becoming increasingly important, reviews activities by private equity and venture capital firms and others in this area, suggests practical steps to identify a capital offering’s unique selling propositions in order to develop and enhance its brand, and presents the concept of capital due diligence.

TOPICS: Private equity, equity portfolio management, manager selection, mutual funds/passive investing/indexing