Private Equity Technology to Help Expand Portfolio Companies

Modern private equity technology is here and ready to help firms improve their processes, streamline workflows, make better use of data, and enhance the way they manage and expand their portfolio companies. 

Watch the video below and read on to learn more about these innovative technologies and how implementing them can hold the key to unlocking new growth potential in portcos.

Making Sense of Data with Data Management Systems

The amount of data recorded by private equity firms is rising each year. From 2015 to 2020, that amount rose from 15.5 zettabytes (15.5 trillion gigabytes) to 59 zettabytes (59 trillion gigabytes). By 2024, it’s predicted to continue rising and hit 148 zettabytes. That’s a lot of data and a lot of useful data that are most likely going unused.  

Related: Why Should Private Equity Firms Invest in Tech?

How can an organization more effectively make use of this information to drive more-informed decision-making in the future? On their own, they can’t. 

That’s why firms are enlisting the help of modern data management systems when selecting private equity technology to help them sort, structure, and make sense of the huge amounts of data being collected every day.  

Raw data does no good and manual data sorting is inefficient, with the help of automated processes and machine learning, private equity firms can quickly and effectively sift through their data to discover previously unknown trends and insights that help them make smarter, informed decisions. 

Related: How Tech is Changing the Portfolio Monitoring Process

Additionally, having access to more structured data makes reporting more straightforward. This helps inform investors and stakeholders with more detailed reports. 

AI in Private Equity Technology and Portfolio Monitoring 

Similar to data management above, artificial intelligence (AI) can be used to collect, sort, and analyze data from portfolio companies to produce detailed reports on performance. This helps firms make smarter decisions on optimizing those businesses, choosing investment areas, and creating/measuring goals.  

Related: AI in Private Equity: What it Means for the Industry

AI opens a lot of doors for firms and their diverse set of portfolio companies. Whether it’s building a digital twin to dynamically model production and manufacturing processes or using AI to make forecasts and predictions on market demands for retailers, AI can play a key role in major decision-making.  

Organize Back-Office Processes 

Everyday processes and workflows that often go unnoticed but are crucial to operations are frequently outdated and inefficient. Unintegrated workflows, slow manual data input/transfer, and other inefficient processes are bogging down entire aspects of businesses. This creates an environment where data is not received quickly enough or is inaccurate. 

With solutions like robotic process automation (RPA) and AI, firms can streamline these workflows to automatically facilitate data to the right place at the right time without any manual input.  

This not only helps make data available when it’s needed but also can improve a firm’s cybersecurity standards, helping maintain compliance with key regulations of data security. 

In Conclusion 

Private equity technology is here to help firms improve the way they use data, streamline processes, and manage their portcos for optimum growth. Implementing these new technologies can give your firm a competitive advantage over less tech-savvy firms that still rely heavily on manual processes. 

Private equity firms are up against a complex challenge when trying to find ways to streamline and optimize processes across all their portfolio companies. But, with modern business technology, these workflows can be effectively improved. Learn more about what it takes to make it happen with our free checklist: How to Streamline Operations Across Multiple Entities.