Over a third of LPs track GPs on social media - survey

Eliza Punshi
23 June 2021

Tweet
Facebook
LinkedIn
Google plus
Send to

Over a third of LPs track private equity fund managers on social media and around a quarter say social media has influenced their investment decisions, according to a survey by Brackendale Consulting.

The Brackendale Private Equity Social Media LP Sentiment Survey 2021 found that 38% of LPs use social media to track GPs and a further 29% use social media as part of their due diligence on potential investments.

The study, which claimed to be the first to find a direct correlation between social media influence and private equity fund investments, surveyed LPs from across Europe and the US, and included a mix of pension funds, insurance companies, family offices and funds-of-funds.

Of the respondents, 24% also said social media has influenced their decision whether to invest in a given fund.

Fay Margo, CEO at Brackendale Consulting, said the research demonstrated that GPs "who are still not choosing to engage with social media are likely to be missing out on valuable investor attention".

However, the survey concluded with the finding that the most important sources of information for LPs on new GPs and potential investee funds are placement agents and word-of-mouth from their LP network.