Operational Efficiency: 3 Steps to Differentiation in Private Equity

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

Data analyticsWith increasing pressure from investors about fees and fierce competition across the industry, private equity CFOs are looking for new ways to streamline and stand out. According to an EY 2018 Global Private Equity CFO survey, operational efficiency is a top priority.

So it comes as no surprise that firms are investing in technology to address these key challenges. Whether it’s making data management more efficient, improving reporting capabilities, or integrating systems for a stronger investor communication platform, transformation through technology is now the name of the game. Key benefits to investing in new technology include: optimizing workflows, reducing operational expenses, and freeing up personnel resources to focus on more strategic endeavors that support revenue growth.

In this blog post, we’ll cover how private equity firms can improve their operational efficiency to differentiate themselves in the marketplace.

Step 1: Make Data Self Serve

What if every stakeholder could access the information that’s relevant to their goals in real time—and get that data any time they needed it? Intuitive solutions like Altvia Answers are designed to give customers, investors, or constituents easy, self-serve data functions right on their desktop. After learning how to use the new tools in the software, the entire team is able to work more efficiently, spending less time waiting for information and more time acting on it’s insights.

Step 2: Ensure Quality Control

In addition to offering a simpler way to manage information, today’s solutions can drastically improve your firm’s data quality control, flagging miscalculated or outdated data automatically.

With more accurate information from the get-go, your firm will be poised to put together more profitable deals. Another plus? You can consolidate your data from multiple sources into one central system and optimize workflows to scale for growth.

Step 3: Leverage Efficient Tools

Whether you’re working on the initial round of funding or are just days away from closing the deal, today’s reporting tools can ensure everyone on the team is on the same page. What’s more, these tools can improve the efficiency and effectiveness of reporting to investors. You can also take advantage of convenient communication tools for communicating more efficiently with busy investors.

Of course, throwing technology at a problem is not going to change your business overnight. It will take some time and effort to implement a new system. But in the end, your team will be able to work on more fulfilling—and profitable—tasks that will set your firm apart.

For more information on how your firm can differentiate itself in today’s market, download our Guide: Data & Technology for Private Equity Firms.

READ THE GUIDE