The private equity game changer

TiG are specialists in providing IT services and delivering projects in the Private Equity sector, and by working as partners and collaborators with many different firms we have gathered insights into how they work. In recent months we have gathered further insights into the area of technology that could be the private equity game changer.

Many firms have two or three analysts working on getting reports from every portfolio, an extremely time consuming task. They have 40 tabs in an Excel spreadsheet with at least 10 to 15 metrics that they want to track, and we’ve even come across analysts on two separate occasions who have stretched Excel to its limits and had to start afresh (yes, it is actually possible to ‘complete’ Excel).

These analysts create reports that go out every Friday, every month end, every quarter, and at year-end. But by the time the data reaches key decision makers within the firm it has possibly already gone out of date and become inaccurate. The technology and systems are now there and easily available to make this happen in real time with no errors. Now it is becoming cheaper, quicker, and faster to deploy, which is driving adoption within the sector-leading firms.

Within the Portfolio

Private Equity firms identify the technology being used within their portfolio companies too, with transition to the cloud being of equal interest here. Gone are the days when a small company should be hosting their IT infrastructure in a small cupboard within their office, so transitioning to cloud-based services is the preference for many.

A number companies are implementing cloud-based business intelligence (BI) tools. In the past, in was necessary to establish an expensive traditional data warehouse, which includes expensive hardware, and do a lot of data transformation to get some actionable insights. However, it’s now possible to ‘build’ a data warehouse within the cloud, making the whole process much faster and more affordable. Today, companies have data in a lot of different locations, legacy platforms and databases. Having a BI tool that can take that data, normalise it, and then run sophisticated reports is a game changer.

These tools have given companies and private equity firms a lot of insight that they never had before. And it’s enabled anyone in the firm to run a lot of quick queries and reports as opposed to employing a very specialised full time analyst. Getting these insights are going to be more and more important as companies try to compete in the ever-changing landscape where they have to get more and more data to help them understand which decisions to make.

If you have found this blog post useful you may like to read our related articles below, or take a look at the Alternative Investment page to find out more about the work TiG Data Intelligence does in this specialist sector.

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