The State of Digital Transformation in the Private Markets
The private equity industry is transforming, and, while we can expect some hurdles, there is widespread acknowledgement that tech is crucial to survive, thrive, and compete in the current market.
Ontra and Private Equity Wire surveyed more than 50 professionals from private equity firms globally, with the majority from North America and Europe.
The goals were to understand the current state of transformation within private equity and asset management firms, key trends and barriers, and where firm leaders’ priorities lay.
What We Found:
- Positively, almost all PE firms surveyed were at some stage of digital transformation (98%). However, only 7% would classify themselves as fully transformed, and less than half were actively implementing digital solutions across their business.
- Unsurprisingly data and business analytics top the technology wish list for all firm sizes. Next on the list is AI and machine learning, with 75% firms with $1bn+ AUM considering this an essential technology.
- Most firms agree that digital transformation will improve investment decision-making and returns (65%) and make firms more attractive for LPs (61%). Seventy percent of respondents also agree that fundraising and investor relations was a top area that could benefit from transformation.