4 Steps to an Effective Private Equity Data Management Strategy

This is the second blog post in a four-part series on how Private Equity firms can better use data and technology to their competitive advantage.

Now that we’ve covered the importance of accurate data for private equity firms in our first post, we’ll discuss how to formulate an effective strategy for efficiently managing and accessing more accurate data.

Step 1: Focus on the Problems You Need to Solve

Start by looking at your organization’s business goals in order to identify what’s working and what needs improvement. To clearly identify any gaps that could be addressed by a more effective data management strategy, ask yourself:

  • ‰Which part(s) of your operations would be best served by more effective data capabilities?
  • Who are the stakeholders who stand to benefit from a data strategy? How do they benefit? Why is it of benefit?
  • Where are there problems in your ability to generate and capture data?
  • Which processes could be streamlined or better informed by data?
  • What data would you like to have but currently don’t?
  • Where could technology be used to facilitate internal processes that may be generating data that isn’t currently captured?
  • Where and how do you currently store data?
  • How usable is your data in its current format?
  • Who do you depend upon to make your data usable?

Step 2: Understand Your Workflows

Once you have a better understanding of what you are trying to accomplish, consider where potential problems may occur and how best to address them. Where do your processes break down? Looking at your current workflow, evaluate how you:

  1. Access and/or connect to data
  2. Prepare data to be properly analyzed
  3. Perform the analysis on and/or consume the data

Step 3: Dip Your Toe Into Analytics

Chances are, your current process is cumbersome and relies on manual input into disconnected systems. Raise your hand if your analysts are relying heavily on Excel spreadsheets? Today’s analytics solutions make it possible for business users with no technical skills to intuitively complete complex analyses in real time, saving you and your organization valuable time and resources.

With tools that allow you to access, prepare, and consume data more easily, analysts can make more efficient use of their time and talents—offering more strategic value to your firm and helping you differentiate from the competition.

Step 4: Get Ready to Demo Solutions

Now that you have a better idea of the benefits that data can offer and what you are looking for in a solution, it’s time to explore what’s available in the marketplace. There are solutions that unite data from disparate sources into one place, then model the information together to establish a single source of truth for all of the data across all of the systems. Even better, technology can connect to the data systems already in place, with no need to export or upload information, simplifying the process. In short, everyone on your team has access to the same relevant data, anytime, from anywhere.

Solutions that allow you to connect and use multiple databases provide the best of both worlds: flexibility and customization. Effective use of data coupled with a technology solution that is specialized for private equity firms can help organizations to significantly improve their use of time and resources, increasing efficiency and simplifying processes. Altvia has developed data and technology solutions specifically for the needs of private equity firms:

Altvia Answers

Purpose-built to pull data from any disparate source into a single platform, Altvia Answers can help you eliminate manual, time-consuming, and error-prone processes.


A contact and data management system, AIM combines the Salesforce platform with a proven process to harness the institutional knowledge of communications, LP portal, and back-end systems specific to the private equity industry.