A Call to Action for Private Equity’s Next Generation

A Call to Action for Private Equity’s Next Generation
By Anne Guenther, Director of Products, Altvia

Investors are hungry – and their appetite is fueled by increasing fundraising activity coupled with Private Equity returns continuing to beat those of all other asset classes over the medium and longer terms. However, investors are challenged to find attractive opportunities compared to a year ago when considering the thousands of funds being marketed. Selecting the right fund manager to navigate a challenging landscape is a very difficult prospect and this is where fund managers must differentiate themselves in an increasingly crowded competitive landscape.

The need to differentiate is a call to action for Private Equity firms to iterate on past successes for 2017 – especially as competition for deals reaches new highs and the maturing Private Equity industry struggles with generational change.  And this generational shift is pivotal – it involves the need for Private Equity firms to recast into new roles and systems in order to embrace the rising challenges of operational excellence, optimizing personnel, and data management. To make this happen, new skills to manage new tools for cost efficiently scaling the business over time are paramount.

A number of leading Private Equity firms are digging deep to identify what works and what doesn’t work to leverage these lessons for forward-looking strategies. This involves investing in skills and technologies that can create greater value across teams and across portfolios. Examples of technologies to increase value are systems that provide more transparency in GP-LP relationships and communications as well as improving data management. Interestingly enough, adoption of these technology solutions is still ramping.

In 2016 in Review, 2017 in View, Jeff Williams, VP of Products at Altvia, comments:

“Better understanding your network, your relationship with that network, being more efficient at servicing and communicating with that network, and having the data to service and support that network are significant differentiators that many fund managers are still not taking advantage of. I expect that we’re in the early innings of this phase, and if some of the B2C markets that were early adopters of these technologies are any indication, the returns will be impressive and create outstanding differentiation for those who adopt them.”

As Private Equity’s generational shift unfolds, so too will the trend towards more data-centered cultures. And as part of this shift, we will likely see an acceleration of “technology + personnel” engagement to drive the new strategies.

About Anne:

Anne came to Altvia with a background in product and marketing management. After completing her MBA, she worked primarily in the tech industry focused on various applications. Anne is currently involved with integrating product strategy and marketing activities at Altvia.

And in her free time, Anne enjoys the great outdoors with her family including skiing, cycling and mountaineering. Also, she loves to travel, which was a seed planted during her early years of growing up in Norway.