Slideshow: For Private Equity Operations, Is the Sky the Limit?

FOR PRIVATE EQUITY OPERATIONS, IS THE SKY THE LIMIT?HOW TECHNOLOGY CAN ENABLE PRIVATE EQUITY FIRMS TO RISE ABOVE THE COMPETITION

“I WISH DATA MANAGEMENT AND REPORTING COULD BE A BIT MORE TEDIOUS,”

SAID NO PRIVATE EQUITY INVESTMENT PROFESSIONAL, EVER.

WHAT IF PRIVATE EQUITY OPERATIONS COULD BE BETTER?

(They can.)

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

HOW CAN TECHNOLOGY PROVIDE THE LARGEST IMPACT WITHIN YOUR BUSINESS?

More standardization*

More informed decision-making

More automation

More agility

More productivity

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

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%

Rank 2Rank 3Rank 4Rank 5Series6

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%.

TO REMAIN COMPETITIVE, INDUSTRY PARTICIPANTS MUST MOVE MORE OF THEIR OPERATIONS TO THE LATEST ONLINE PLATFORMS THAT COMBINE SCALABILITY, FLEXIBILITY AND INTEROPERABILITY.

WHEN THE SKY’S THE LIMIT, LOOK TO THE CLOUD

WHICH TECHNOLOGIES ARE YOU CURRENTLY EXPLORING?

Basic communication tools

Analytics/business intelligence

Mobile

APIs/data integration

Cloud

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

63%

67%

68%

72%

78%

37%

33%

32%

28%

22%

Se-ries5

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

WHAT IS YOUR PRIMARY BUSINESS REASON FOR USING THE CLOUD?

Other

Compliance

Regulation

Cybersecurity

Cost

Data privacy

4%

5%

12%

23%

28%

29%

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.

AUTOMATE TO ELEVATE

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.

IN WHICH AREAS COULD TECHNOLOGY MOST HELP YOUR BUSINESS WITH REGULATORY COMPLIANCE?

Gathering more data

More efficient decision-making

Automated tracking

Automated auditing

Automated reporting

Automated data collection/aggregation

9%

11%

12%

20%

24%

25%

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.

OUTSOURCE WHAT WEIGHS YOU DOWN

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.

BY 2020, MY BUSINESS IS LIKELY TO OUTSOURCE …

None of them

Middle-office functions

Front-office functions

Back-office functions

4%

40%

44%

54%

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

WILL YOUR OPERATIONS HELP YOU RISE ABOVE THE COMPETITION?

(We hope so.)

BETTER OPERATIONS CAN MEAN MORE ROOM TO INVEST IN THE CLIENT

EXPERIENCE

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.

WHERE WILL YOU INCREASE INVESTMENT THE MOST BY 2020?

Disruptive technologies/companies

Talent management

Regulatory compliance

Market expansion

Customer experience

5%

9%

19%

33%

34%

“SEE YOU LATER, TECHNOLOGICAL DARK AGES.”THAT’S WHAT WE’RE HEARING LOUD AND CLEAR FROM THE GLOBAL PRIVATE EQUITY SPACE.

LEARN MORE IN OURNEW REPORT

getinfo@fisglobal.com

PRIVATE EQUITY AND TECHNOLOGY: THE PROMISE OF TOMORROW

TO REQUEST YOUR COMPLIMENTARY COPY, CONTACT US: