During The Deal's Private Capital Symposium keynote, head of the new Private Equity Council, Doug Lowenstein, talked about the point of the organization, likened private equity to the video-gaming industry and talked about the intersection of the media and PE.
When asked what his tenure with the Entertainment Software Association taught him about private equity, Lowenstein said, "A lot." He said parallels run deep between video games and private equity. The video game industry was little understood 13 years ago, and it became a political target. From a public policy standpoint, the idea became to create a greater awareness of its contribution to society. The same is true for PE, he said: There is an information gap.
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The newly formed voice for private equity, the PEC serves to give a public face to an industry that weathered an uproar in Europe. The organization recognized what was happening to hedge funds and wanted to head off the same thing.
The council has a long list of research topics, like how to collect evidence demonstrating PE's impact on the economy, but hasn't yet prioritized them. "The big story isn't Blackstone or Carlyle, but it is Dunkin' Donuts and J. Crew," Lowenstein said.
Lowenstein called the industry a juicy target for the media and analogized PE's skewed image to the misconception that all video games are violent. "PE suffers from the same thing," he said.
The council's job, he said, is to build relationships with the media to help them tell a more grounded story. "You can't deny PE is a story people are interested in," he said.
The council plans to take the industry's issues to the committees that have a direct impact on PE. After just six weeks, he said, he has been surprised by Washington's ignorance toward the industry and is intent to meet with as many policymakers as possible to shape their perception.
"We need to convince people that PE is a positive force, and we need research and anecdotes to tell that story." It's too soon to say whether sponsors will become more visible, he said, adding he would hope principals would opt to help deliver the council's message.
The PEC will never be like big industry groups, Lowenstein said, and should grow from four to about 10 employees by its first anniversary. —Matthew Wurtzel
Below, The Deal's John Morris talks with PEC's Doug Lowenstein.
