The growing importance of brand purpose in private equity
In 2018 Larry Fink, Chairman and CEO of Blackrock, the world’s largest private equity firm, published his annual letter to CEOs. The letter was titled ‘A Sense of Purpose’ and its contents have stirred many responses from within the investment business.
Mr Fink explained that it is no longer sustainable for brands in this sector to solely focus on business and financial performance. He argues that the sustainability of a private equity brand’s success is now dependent on its ‘social license’ – for example, the organisation’s ability to be empathetic to the environment and other stakeholders.
VIM Group CEO Marc Cloosterman explained his observations, to the Global Banking & Finance Review, on this major shift, with recommendations for how the branding and communications sector might respond.
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