Technology-driven Private Equity Solutions That Drive Value
Private equity firms play a significant role in strengthening the economy by offering funds to fast-growing businesses. These firms also provide funds to start-ups with high growth potential. Private equity firms, at times, might also look to buy an entire company with valuable assets. Often, a group of investors in the private equity market de-list a company by buying all the shares. Since private equity deals require more money, investors must find a way to ensure high returns. It is where technology comes into action for private equity firms. Technology-driven private equity solutions can help with research, analysis, due diligence, and other processes.
Read on to understand the value of technology-driven solutions for private equity firms.
How do technological solutions drive value for private equity firms?
The first benefit of technology for private equity firms is improved due diligence. Before investing in a company, a private equity firm will analyse the growth potential of the company. It might include cross-checking financial statements for the past few years to determine the company’s financial stability. Similarly, the debt of the company is checked before investing. A company might conceal some information to carry on with a private equity deal. With manual due diligence, private equity firms might never uncover the concealed information. Technological solutions can analyse financial statements and predict a company’s growth.
There are multiple processes for a private equity firm to manage. Deal sourcing, due diligence, portfolio management, target evaluation, and deal closing are a few processes for a private equity firm. There is a need to streamline these processes and improve efficiency. Private equity firms cannot complete all tasks manually and think of saving time. Technological solutions will remove the need for manual labour for some private equity processes. As a result, private equity firms will focus only on crucial activities that drive value.
Some private equity firms look for technological solutions for portfolio management. Since private equity firms have diverse portfolios, it is essential to track the performance of investments. Automated portfolio monitoring solutions have driven private equity firms to make better decisions. Private Equity Solutions for portfolio management can track the performance of portfolio companies. Private equity firms will be informed in real-time if something goes wrong with portfolio companies.
Use BEAT FolioSure for Portfolio Management in 2023
Among all the technological solutions used by private equity firms, FolioSure is a popular one. Offered by Acuity Knowledge Partners, it is an advanced platform for portfolio monitoring. Often, private equity firms are worried about the accurate comparison of portfolio companies. FolioSure enhances accuracy, and private equity firms will have the required results in real time. Also, it is 30% less expensive than other portfolio monitoring solutions distributed in the market for private equity firms.
Conclusion
In this digital age, every business is using technology for improved efficiency. It is time for private equity solutions that can drive value and reduce the manual load. If you are looking for a reliable portfolio monitoring solution, FolioSure is the apt choice. You can also contact Acuity Knowledge Partners for private equity support at reasonable prices.
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