Recently Altvia SVP, Industry Solutions & Strategy Jeff Williams participated in a panel discussion on investor relations as part of the PEWlive Technology Summit hosted by Private Equity Wire.
Other panelists were Lena Ulrich of Nordic Capital Advisors, Claire Commons of Palico, and Andrew Harrison of Silverfleet Capital, with Zack Ellison of Applied Real Intelligence as the moderator.
The session covered a wide range of topics and provided a number of observations and insights on how investor relations have evolved and the role technology plays in the industry today.
Perspectives from PE industry experts
In the video of the session, Lena notes that it’s been interesting to see the transition of investor relations (IR) tools from cool technology to absolutely crucial systems.
Claire, a 20-year industry veteran points out that when she started her career as an LP, applying stickers to sheets of paper was the extent of the available “technology”!
Talking about where technology like Altvia’s suite of products is today, Jeff emphasizes the importance of making data leverageable across organizations. He says, using a unique analogy, that information should be like a rotating sushi bar, where when you need something, you simply reach in and grab it.
In introducing himself and his company, Andrew makes the important point that while technology is critical to success in PE today, that’s true because it supports and enhances personal relationships.
The covid crisis: tech saves the day
As Lena shares, when the COVID-19 pandemic hit, technology was more important than ever for PE professionals. Her organization had to abruptly move what was planned to be an in-person Annual General Meeting to a production studio and a virtual format.
In doing so, they learned that having shorter, live sessions cast from different regions was helpful, as it allowed them to introduce more of their team to investors.
They also discovered that they could invite a wider investor group to participate in the meeting since there were no physical space constraints and that segmenting the content allowed people to pick and choose what they wanted to consume.
She feels that even after the pandemic is behind us, a hybrid experience to meetings may be the best approach. It allows people to be physically present if they prefer to, but with technology making the meeting available to a wider audience. And beyond meetings, technology is allowing firms to interact with investors more frequently and in the ways they prefer—from quick catch-up calls to deep dives.
Andrew echoes those thoughts, saying that a virtual AGM is much easier to organize, and that technology allows firms to provide more frequent updates to stakeholders. Nothing will replace the kind of connection you can establish by meeting for coffee or dinner, but today’s digital tools provide many benefits.
And there is clearly growing acceptance of technology as a sometimes-replacement for in-person meetings. As he notes, people are much more comfortable having a video conference today than they were just a year ago.
Andrew also says that technology has helped firms “smarten up” a bit as far as analyzing the interests of stakeholders and responding accordingly. Click rates on reports and other metrics help firms understand who’s reading what and create more “bespoke” reporting. Claire adds that firms are all looking for ways to create deeper and more authentic relationships, and advanced PE solutions are the key.
And as Jeff observes, the role of technology isn’t to cut back on face-to-face time, but rather to optimize it. People find that they can, in essence, attend multiple AGMs in a single day, which frees up more time for in-person meetings. It also saves time for those hosting AGMs, as preparing for and conducting a virtual meeting does require an effort but not nearly as many hours as an onsite gathering.
Prospecting for LPs
As the video continues and panelists are talking about how to attract new LPs, Jeff shares Altvia’s vision of having data-driven prospecting processes that are similar to those used outside of PE.
He gives the example of using data to identify the types of LPs with which a firm has previously had success and the types of interactions with them that have been particularly helpful in order to “optimize the digital engagement real estate” and focus on what’s working.
With Palico being a tool to help IR teams find qualified leads, Claire notes that the right technology can help LPs deepen relationships with managers, and on the flipside, funds on their platform can engage with active institutional members.
She also emphasizes that technology can help eliminate time wasted at the top of the funnel. Plus, it can enable users to create a story, backed by data, that creates a more 3D image for decision-makers to consider.
Lena adds that for her firm, the ability to do mass outreach in a customized and personal way is a major benefit of today’s leading-edge PE systems. You no longer have to choose between large quantities of email and personalized emails—you get the best of both worlds.
Particularly powerful investor relations tools
When asked about technologies that they found particularly helpful as the pandemic impacted the PE industry, the panelists chime in with a number of tools. Zoom and other video conferencing tools come up immediately, of course.
Jeff explains that Altvia has seen two main categories of technology adoption: internal tools for acquiring in-context data about companies they want to target or current LPs, and more external-focused tools for measuring and improving engagement.
As Jeff points out, firms have to be thoughtful about the types and amounts of content they provide. And technology can help there by providing insight on what information has historically been relevant to different stakeholders.
