PE Brand Hybrid Strategy

Shaan discusses a hybrid approach combining private equity operations with brand/audience building to create unique market advantages. This strategy leverages an "audience cofounder" model where someone with a large, trusted audience partners with existing businesses to accelerate growth.

Key Components:

• Audience Cofounder Model:

  • Partner with businesses as a cofounder who brings audience/distribution
  • Lower customer acquisition costs, sometimes to zero or negative
  • Must have large, trusted audience (trust being key metric)
  • More involved than traditional celebrity endorsements

• Evolution of Celebrity Partnerships:

  • Started with simple endorsements (hold product, smile)
  • Evolved to equity deals (15-20% ownership)
  • Now moving toward true operational involvement
  • Transitioning from consumer products to software/business services

• Requirements for Success:

  • Large, trusted audience (measured by engagement/action, not just size)
  • Product-to-audience fit
  • Content creativity (ability to create ongoing content stream)

• Market Advantage:

  • Private equity operators typically don't understand brand
  • Brand people typically don't understand private equity
  • Combining both creates unique market positioning
  • Can lead to significant valuation growth (example: Shepherd growing 3x in one year)

• Modern Implementation:

  • Moving beyond celebrity endorsements
  • Focus on software/B2B services
  • Deep operational involvement
  • Continuous content creation and audience engagement