Private equity (PE) firms have reached a new stage of maturity in terms of data analytics. The focus of investment has moved from operations to investment teams, with a newly sharpened focus on competing for deal flow.
PE firms look increasingly set to enter the fray and explore insights from a broader range of data sources, especially when it comes to investment sourcing. Alternative data—such as social media, videos, online transactions, mobile phones, and satellite imagery—is opening a broader universe of information to source deals. In addition, dedicated tools are now helping make sense of previously inaccessible and unstructured data sets. The tools effectively aid in capturing the prospect pipeline to execute the fundraising cycle in a single portal, resulting in more streamlined negotiations and unlocked dealmaking creativity.
These competencies are increasing the global market value of private equity firms to reach $12.5 trillion by 2025.
To put the spotlight on other key developments, Financial Services Review illustrates how PE firms are leveraging the latest technologies to augment dealmaking operations. This edition also features a thought leadership article from James Ross, Head of Regulatory Developments EMEA at Columbia Threadneedle Investments; Fran Orr, AVP/Deputy Chief Risk Officer, Premier Bank; Filippo Casagrande, Head of Insurance Investment Solutions at Generali Asset and Wealth Management; and Paul Young, Chief Financial Officer at Liberty Bank. They shed light on the importance of strategic planning in investment, the paradigm shifts in risk management, and how alternatives are advantageous from an allocation perspective.
In this edition of Financial Services Review, we also bring to you the story of some of the top PE firms, mid-market PE firms, and real estate PE firms. In the list, Clarendon Capital stands out for bringing substantial value-add and investment returns in the logistics sector. We also bring you the story of Red Arts Capital, which focuses on investing in lower-and middle-market privately-owned, family, or multi-generational firms with solid business fundamentals. Equally commendable are the stories of Rockline Equity and Toltec Capital.
Through the following pages, we aim to shine a light on the innovative trends and latest developments in the private equity space. We would like to know your thoughts.
