How Private Equity Firms Can Use Brand Strategy for Growth.

Brands with strong reputations consistently generate over 30% more return to shareholders. A bold statement, but one made by *McKinsey and witnessed by us in the companies we have worked with and especially relevant for Private Equity (PE) firms and the businesses they invest in.  

The Power of Brand Strategy as a Value Creation Lever for Private Equity

The returns Private Equity companies seek are realised in the valuation achieved on the exit from their portfolio companies. The brand, the brand strategy and the positioning of these companies can be one of the most powerful levers in their toolkit to increase value. 

Brand used to be thought of as a nice to have, lower down the list of priorities a business and leadership team faced and sometimes even thought of as just a new logo. Investing in Brand to mask a business that is flawed or uncertain of the value it brings is clearly a mistake. But when the investment opportunity in a business is looked at as a whole and Brand is included as a lever alongside other decisions and choices there can be a significant impact for that company.  

Brand, when approached strategically, is a tool and driver to create a differentiated positioning in the market. Giving it a seat at the table as early as possible in the investment cycle will help the business create standout in a competitive market, owning your chosen category and extend your reach to secure a higher multiple. Brand can be thought of as a foundational element to enable exit and deliver the clear runway for the next investor. 

In our own experience, and in the projects we have worked on that support McKinsey’s findings, our clients echo this effect. Embracing the brand process to align with strategic direction setting and team alignment. Creating one brand across all channels alongside a seamless narrative conveyed by all its people.  

The impact is especially evident in high-growth companies where time and target pressures mean that a well-defined brand can serve to drive credibility, market traction and investor confidence.  

Case Study: CTRL – Harnessing brand to drive success

This can be witnessed in the branding work for CTRL, an AI-powered workspace platform, leveraged brand strategy to establish a clear, compelling market position. CEO Omri Sagzan saw brand as a crucial tool for unifying messaging across multiple audiences. He shared: “Branding helped us look ahead of our time. It gave us one language between our website and product—a sign of maturity.”  

CTRL achieved the success it sought, being successfully sold and integrated into Sana Labs.

Private equity firms and business leaders can look at brand and the brand process as a sitting along-side their company strategy. A way of working that aligns brand strategy with business goals, market dynamics with a compelling narrative. One that drives difference, memorability, and engagement. All of which, as every experienced leader knows, drives growth. 

Using Brand Strategy as a Growth and Value Creation Lever

When Brand is treated as a strategic asset, it can contribute to revenue growth, market expansion, and investor confidence—key factors in valuation uplift.

PE’s should consider it a valuable component in the value creation playbooks the companies they choose to invest in can profit from. Brand strategy, for any company that is ambitious and wants to grow, is much more than a marketing initiative. It’s a high-impact tool and asset to accelerate market positioning and drive valuation multiples.  

A strong company repositioned in a sector or category with a powerful and compelling brand can transform a portfolio company’s ability to connect and compete at the highest levels. Opening doors to larger contracts, enabling a review of pricing, creating space for strategic partnerships, connecting to acquisition targets and exit opportunities. 

Case Study: Qover – Redefining Insurance with a new category

Qover, a leader in insurTech, leveraged brand strategy to transition from a niche vendor to an industry authority with the creation of a new category, embedded insurance orchestration. Their rebrand unlocked new enterprise partnerships, as CEO Quentin Colmant noted: “Following the branding work, overnight we became an ecosystem partner in the large enterprise space. We are invited to the table of jumbo deals—it’s an amazing achievement.”

This strategic repositioning led to higher revenue growth, improved margins, and a stronger valuation narrative, ultimately securing a higher return and faster exit for its PE investors.

We developed a brand strategy for Qover that redefined its market position. This shift went beyond perception—it unlocked new market opportunities and revenue potential. By establishing Qover as a trusted industry partner rather than just another vendor, we enhanced its credibility in the marketplace. This is an example of how creating this kind of credibility enables PE-backed companies to penetrate larger enterprise markets more quickly.

When a brand is positioned as a leader, it creates credibility in enterprise sales cycles, shortens decision timelines, and increases pricing power. For PE-backed companies, this translates into higher revenue growth, improved margins, and a stronger valuation narrative at exit.

The Competitive Advantage of Early Brand Investment

A well-executed brand strategy can: 

• Align internal teams: with everyone aligned, stripping out conflicting visions, decision-making can be streamlined, product development accelerated, and innovative thinking can flourish. 

• Accelerate Market Penetration: by positioning the company as a category leader the business can connect to and be considered for larger enterprise deals, accelerating market dominance. 

• Enhance Competitive Differentiation: by shifting perception from a mid-market player to a strategic industry partner the business can drive differentiation into the minds of its target audiences, securing RFPs and leads. 

• Maximise Exit Potential: elevate brand equity, making the company more attractive to strategic buyers and financial sponsors. 

For PE firms then, brand and brand strategy should be seen as an investment in value creation. Brand should be seen as a lever and tool that can make the difference between a good company and a great company. Or to put it in PE terms, a good exit, or a great exit. 3x or 10x. We all know which we would all prefer.  

Conclusion: Brand as a Value Creation Tool in PE

For private equity firms, brand is not just a marketing expense—it is a high-impact strategic asset that accelerates market positioning and valuation uplift. A strong brand unlocks new opportunities, attracts investment, and creates a compelling exit narrative that drives higher multiples and stronger financial outcomes.

...

Want to maximise valuation for your portfolio companies? Let’s discuss how strategic brand positioning can drive growth and enhance exit value. Contact us.

...

*A McKinsey & Company study revealed that brands with strong reputations generate 31% more return to shareholders than the MSCI* World average. MSCI (Morgan Stanley Capital International).