Leverage technology to build confidence in any investor relationship

One of the questions we frequently get asked by our clients is “What are Private Equity best practices and what is everyone else doing that I should be doing?” We are excited to announce our Private Equity Technology Assessment!

The assessment is a framework around the Business Maturity Model which outlines key components to consider as you invest in and evolve your use of technology within your firm. The 10 minute questionnaire will help you assess your current state and identify priorities for the future.

Our Private Equity Technology Assessment looks at 5 main categories: 

  • Technology
  • Data & Analytics
  • People
  • Process 
  • Sponsorship

Technology focuses on your technology investment and how your use of it evolves over time within your firm. Data & Analytics assesses data quality and how you and your team’s leverage data to drive insightful reporting. People evaluates your usage and adoption across your technology solutions and understands if you have people in leadership positions to help drive technology strategy. Process reviews how well your business processes are aligned to your technology. And last but not least, Sponsorship looks at the involvement of your Executive Sponsor.

For each of these categories, are you in the early stages or “Developing”? Have you progressed past “Developing” and are you moving towards “Emerging”? Or are you even more evolved and considered “Strategic”? And for those who are really progressive, are you considered “Market Leading”

The key with any assessment that there is no “right” or “wrong” answer. Rather, it’s a continuum and it’s important to understand where you are and where you’d like to go strategically. In addition, each of the 5 categories work closely together and are symbiotic. Market Leading firms are focusing equally on all 5 categories to ensure they maximize the value from their technology investment.

Why private equity firms need a technology strategy for 2020

The Private Equity industry is at a technological turning point. Every year, Limited Partners are demanding faster, easier access to information while General Partners are struggling with how best to use technology to support these critical investor relationships. Savvy investors are now expecting clean and secure reports or documents delivered via email on-demand or on an ongoing cadence. 

Survey results from the EY 2018 Private Equity Study, mentions, “more than 65% of firms are currently investing in (or plan to invest in) emerging technologies such as digital data delivery, advanced analytics or robotics.” In another study from KPMG Digital Transformation, found that only a handful of larger firms “have already implemented or are currently exploring the use of digital tools and D&A to provide them edge.”

As a result, Private Equity firms are focused on technology transformation and Improved investor reporting to meet this important challenge. Every year, the value of technology in Private Equity is becoming more widely recognized.

With more firms look to better leverage technology for such as deal flow management, fundraising management, and investor relations communications, it becomes important for any private equity firm to assess their technology solutions, process, and strategy. 

Are you ready to take our Private Equity Technology Assessment? If so, click the button below to get started.  

 Private Equity Technology Assessment