You're navigating a leadership change in Private Equity. How do you maintain rapport with industry contacts?

Leadership changes in private equity create a need to maintain trust with key contacts. To do this, it is important to intensify communication through regular meetings and updates, demonstrating interest in their opinions and experiences. Using personalized approaches, such as individual messages and topical issues, will help to strengthen connections. Transparency remains important - share your strategies and goals to build trust and interest. At the same time, active participation in industry events and forums will not only strengthen existing relationships, but also create new ones. Continuous market research demonstrates professionalism, which also helps to increase credibility with partners and clients.

In 2022, mid-market private equity firm Aventus Capital, managing $1.2 billion in assets, underwent a leadership change as Managing Partner Michael Tanner retired, and Rebecca Collins took over. The firm had consistently delivered a 16% IRR over the past decade, with a 2.2x cash-on-cash multiple. To maintain rapport with LPs and industry contacts, Collins immediately hosted a series of investor meetings, presenting a clear strategy for enhancing portfolio performance, which included targeting higher-growth companies. By Q3 2023, the firm had closed a $300 million deal, boosting the portfolio’s EBITDA by 12%, ensuring confidence and trust were sustained during the transition.

During a period of leadership change in Private Equity, it is important to promptly build communications based on trust and transparency. The key aspect is to proactively inform all stakeholders, including LPs, partners and portfolio company management, about strategic changes. Direct contact – calls or face-to-face meetings – is preferable to email correspondence. Use the transition period to strengthen relationships, demonstrating consistency in decision-making and ensuring adherence to investment objectives. Convincing internal communications aimed at uniting the team ensures that confidence is maintained with external partners and the risk of loss of reputation or loyalty is avoided.

During leadership transitions, it's crucial to keep communication channels open. Initiate conversations with your industry contacts to update them on the changes and explain their implications. Be honest about the reasons behind the transition and what it means for future directions. Transparency quells rumors and builds trust. Listening to feedback and addressing concerns shows that you value their input. For example, when Aventus Capital’s Rebecca Collins took over, she hosted investor meetings to outline the firm’s strategy, reinforcing trust and maintaining confidence.

During a leadership change, proactively reach out to your contacts to inform them about the transition and its implications. Be transparent about the reasons and future direction, which helps alleviate concerns and quash rumors. Listening to their feedback and addressing questions shows you value their input. For instance, when Aventus Capital's Rebecca Collins took over, she immediately hosted investor meetings to present a clear strategy, reinforcing trust and maintaining confidence.

Uniformity in communication is vital during a leadership change. Ensure that everyone in the firm delivers a consistent message to external contacts to avoid confusion and present a united front. A coherent narrative reassures partners and stakeholders about the firm’s stability. For instance, Disney maintained consistent messaging when Bob Chapek succeeded Bob Iger, emphasizing continuity and reassuring stakeholders about the company's unwavering strategic direction.

Consistency in messaging is crucial during transitions. Ensure everyone in the firm communicates the same message to avoid confusion and demonstrate unity. A coherent narrative reassures partners and stakeholders about the firm’s stability. Disney exemplified this when Bob Chapek succeeded Bob Iger, maintaining consistent messaging that emphasized continuity and reassured stakeholders about the company's unwavering strategic direction.

Ensuring consistent messaging across your firm is essential during a leadership change. Make sure everyone communicates the same message to avoid confusion and present a united front. This uniformity reassures partners and stakeholders about the firm's stability. For example, Disney maintained consistent messaging when Bob Chapek succeeded Bob Iger, emphasizing continuity and reassuring stakeholders about the company's unwavering strategic direction.

This is one of those situations where the indispensable need for a clearly articulated and corporately adopted communications strategy, with clear structure and delegation of authority and led by an appropriately experienced & professional team, cannot be overstressed. The following may be deployed in this regard: - Internal briefings - Media Statement (s) / Press release (s) - Targeted stakeholder engagement sessions - Confidentiality Agreement(s) incorporating appropriate disclaimers and legally enforceable counter measures with affected and aggrieved parties

In 2020, Disney experienced a leadership transition when Bob Chapek succeeded Bob Iger as CEO. This change was significant, given Iger’s highly successful tenure and the company’s global influence. To manage this shift effectively, Disney employed a strategy centered on consistent messaging to reassure its wide network of investors, partners and stakeholders.

Personal outreach can significantly strengthen relationships during a transition. Arrange one-on-one meetings or calls with key stakeholders to discuss the change. Personalized communication shows respect and value for the relationship, providing a platform to address specific concerns and reaffirm commitments. This personal touch can preserve strong professional bonds, ensuring stakeholders feel seen and heard during uncertain times.

Personal outreach can significantly strengthen relationships during a transition. Arrange one-on-one meetings or calls with key stakeholders to discuss the change. Personalized communication shows respect and value for the relationship, providing a platform to address specific concerns and reaffirm commitments. This personal touch can preserve strong professional bonds, ensuring stakeholders feel seen and heard during uncertain times.

Personal outreach during a transition can strengthen relationships significantly. Arrange one-on-one meetings or calls with key stakeholders to discuss the change. Personalized communication shows respect and value for the relationship, providing a platform to address specific concerns and reaffirm commitments. This personal touch can preserve strong professional bonds, ensuring stakeholders feel seen and heard during uncertain times.

Introducing new leaders to your contacts can invigorate relationships. Highlight their strengths and experiences, showing how they align with the firm's goals. Encourage contacts to view this as an opportunity for fresh perspectives. Facilitate direct meetings between new leaders and key stakeholders to build rapport. This helps smooth the transition, setting the stage for continued collaboration and renewed energy.

Introducing new leaders to your contacts can invigorate relationships. Highlight their strengths and experiences, showing how they align with the firm's goals. Encourage contacts to view this as an opportunity for fresh perspectives. Facilitate direct meetings between new leaders and key stakeholders to build rapport. This helps smooth the transition, setting the stage for continued collaboration and renewed energy.

Introducing new leaders to your contacts is an opportunity to reinvigorate relationships. Highlight the strengths and experiences of the incoming leadership and how they align with the firm's goals. Encourage your contacts to see this as a chance for fresh perspectives and renewed energy. Facilitate meetings between them and the new leaders to build rapport and establish direct lines of communication. This helps create a smooth transition and sets the stage for continued collaboration.

- Continue attending industry events, conferences, and meetings where you're likely to encounter your contacts. Use these opportunities to reconnect, reaffirm relationships, and introduce new leadership to the community - Emphasise the stability of your firm's investment strategy, values & overall approach. Reassure contacts that despite the leadership change, the core principles that underpinned your past interactions remain intact - Facilitate a thorough handover process between outgoing and incoming leadership. Ensure that critical information about industry relationships, deal pipelines & ongoing communication is properly documented and shared.

Maintaining continuity is critical during leadership changes. Ensure that ongoing initiatives and commitments are honored without interruption. This demonstrates reliability and dedication to partnerships, reinforcing the firm’s stability despite internal changes. For example, JPMorgan Chase maintained service levels during its leadership adjustments post-‘London Whale,’ ensuring that client relationships remained unaffected, thereby maintaining trust and confidence.

In 2012, JPMorgan Chase faced leadership adjustments following the “London Whale” trading losses. Jamie Dimon ensured that all ongoing commitments to clients and partners were honored without disruption. Despite the internal challenges, the firm consistently communicated that service and engagement levels would remain unchanged. Dimon emphasized that operations and client relationships were stable, reinforcing the message internally to employees and externally to partners. By providing continuity and stability, JPMorgan Chase maintained trust and confidence, demonstrating its resilience and dedication to long-term relationships.

Reinforce the value your firm brings to industry contacts. Highlight your track record, expertise, and successful outcomes achieved together. Emphasize that while leadership may change, the firm's commitment to excellence remains steadfast. Focusing on your value proposition reminds contacts why they chose to partner with you initially, fostering loyalty and ongoing engagement despite transitions.