Slideshow: For Private Equity Operations, Is the Sky the Limit?
Download as PPTX, PDF•4 likes•1,915 views
The document discusses how technology can enhance private equity operations by improving data management, reducing costs, and optimizing client experiences. It emphasizes the transition to cloud-based solutions for greater scalability and efficiency, highlighting the importance of automation and outsourcing to improve compliance and decision-making. The overall message is a push for private equity firms to adopt modern technologies to remain competitive and enhance their business operations.
Slideshow: For Private Equity Operations, Is the Sky the Limit?
- 1. FOR PRIVATE EQUITY OPERATIONS, IS THE SKY THE LIMIT? HOW TECHNOLOGY CAN ENABLE PRIVATE EQUITY FIRMS TO RISE ABOVE THE COMPETITION
- 2. “I WISH DATA MANAGEMENT AND REPORTING COULD BE A BIT MORE TEDIOUS,” SAID NO PRIVATE EQUITY INVESTMENT PROFESSIONAL, EVER.
- 3. WHAT IF PRIVATE EQUITY OPERATIONS COULD BE BETTER? (They can.)
- 4. FOR PRIVATE EQUITY FIRMS, BETTER OPERATIONS CAN MEAN … Reduced costs associated with time and resources to manage data and comply with reporting requirements More time to spend analyzing and acting on data to optimize investments and strategies An enhanced client experience grounded in efficient communication, data transparency and flexible reporting
- 5. HOW CAN TECHNOLOGY PROVIDE THE LARGEST IMPACT WITHIN YOUR BUSINESS? 6% 11% 17% 25% 41% 18% 15% 23% 18% 26% 22% 21% 22% 17% 17% 28% 26% 17% 21% 8% 25% 27% 21% 19% 8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% More standardization* More informed decision-making More automation More agility More productivity Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 All data is sourced from a 2016 survey of over 300 private equity professionals by FIS and Lantern Insights *Due to rounding, some totals do not equal 100%.
- 6. TO REMAIN COMPETITIVE, INDUSTRY PARTICIPANTS MUST MOVE MORE OF THEIR OPERATIONS TO THE LATEST ONLINE PLATFORMS THAT COMBINE SCALABILITY, FLEXIBILITY AND INTEROPERABILITY.
- 7. WHEN THE SKY’S THE LIMIT, LOOK TO THE CLOUD
- 8. WHICH TECHNOLOGIES ARE YOU CURRENTLY EXPLORING? 63% 67% 68% 72% 78% 37% 33% 32% 28% 22% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Basic communication tools Analytics/business intelligence Mobile APIs/data integration Cloud Yes No
- 9. THE RISE OF THE CLOUD 3% 27% 70% Despite the industry’s conservativeness and its reluctance to share proprietary investment data and contacts, participants in our private equity survey are surprisingly open to the cloud. What role do you see for the cloud within your business? No role Major role Minor role
- 10. WHAT IS YOUR PRIMARY BUSINESS REASON FOR USING THE CLOUD? 4% 5% 12% 23% 28% 29% Other Compliance Regulation Cybersecurity Cost Data privacy
- 11. THE RATIONALE FOR SHIFTING TO THE CLOUD INCLUDES THE INHERENT SCALABILITY AND PROCESSING POWER OF DISTRIBUTED ONLINE PLATFORMS AS WELL AS THE REDUCED MANAGEMENT BURDEN ASSOCIATED WITH EXTERNALLY HOSTED SERVICES.
- 13. TO SPEND LESS TIME ASSEMBLING DATA AND MORE TIME ANALYZING OR ACTING ON IT, YOU NEED TO AUTOMATE PROCESSES TO MAKE THEM LESS LABOR-INTENSIVE. IN PRIVATE EQUITY, AUTOMATION HOLDS PARTICULAR PROMISE IN EASING COMPLIANCE PRESSURES.
- 14. IN WHICH AREAS COULD TECHNOLOGY MOST HELP YOUR BUSINESS WITH REGULATORY COMPLIANCE? 9% 11% 12% 20% 24% 25% Gathering more data More efficient decision-making Automated tracking Automated auditing Automated reporting Automated data collection/aggregation
- 15. ROLES WILL END UP BEING DIVIDED INTO THOSE THAT CAN BEST BE UNDERTAKEN MANUALLY AND THOSE THAT SHOULD BE AUTOMATED. PRIVATE EQUITY FIRMS SHOULD BE READY TO EMBRACE THIS TECHNOLOGICAL SHIFT.
- 16. OUTSOURCE WHAT WEIGHS YOU DOWN
- 17. OUTSOURCING, ESPECIALLY WHEN COMBINED WITH NETWORK- ENABLED TECHNOLOGIES, ALLOWS PRIVATE EQUITY FIRMS TO FOCUS ON WHERE THEY ADD VALUE WHILE ALIGNING WITH INTERNAL PRIORITIES TO MANAGE COSTS AND INCREASE EFFICIENCY.
- 18. BY 2020, MY BUSINESS IS LIKELY TO OUTSOURCE … 4% 40% 44% 54% None of them Middle-office functions Front-office functions Back-office functions
- 19. 19 When investors undertake due diligence on a fund manager, you need to have an established platform to manage your operations or outsource to a third party. One of those options has to be in play. Tony Chung head of product management and strategy, Private Equity, FIS
- 20. WILL YOUR OPERATIONS HELP YOU RISE ABOVE THE COMPETITION? (We hope so.)
- 21. BETTER OPERATIONS CAN MEAN MORE ROOM TO INVEST IN THE CLIENT EXPERIENCE
- 22. THE PRIVATE EQUITY INDUSTRY’S EFFORTS TO REINVENT ITS RELATIONSHIP WITH TECHNOLOGY REFLECT A RECOGNITION OF THE CRITICAL IMPORTANCE OF TECHNOLOGY TO WINNING AND RETAINING CUSTOMERS AND TO PENETRATING NEW MARKETS.
- 23. WHERE WILL YOU INCREASE INVESTMENT THE MOST BY 2020? 5% 9% 19% 33% 34% Disruptive technologies/companies Talent management Regulatory compliance Market expansion Customer experience
- 24. “SEE YOU LATER, TECHNOLOGICAL DARK AGES.” THAT’S WHAT WE’RE HEARING LOUD AND CLEAR FROM THE GLOBAL PRIVATE EQUITY SPACE.
- 25. LEARN MORE IN OUR NEW REPORT [email protected] PRIVATE EQUITY AND TECHNOLOGY: THE PROMISE OF TOMORROW TO REQUEST YOUR COMPLIMENTARY COPY, CONTACT US: