The digital age brings multiple opportunities as well as challenges galore for Private Equity (PE) Funds. On the one hand, business complexities are enormous, so very difficult to assess which one would be a horse to back in the long-run. On the other, the plethora of data available, business analytics capabilities and increased connectivity has increased the capacity of PE funds to conduct due diligence with the right set of derived business intelligence. Such analytics capabilities need to be married to a more street-smart business savvy. A new methodology to assess investments has been developed by Bain, termed as “today forward, future back”. Today forward looks at the present status of the company within the particular sub-sector and how they can leapfrog ahead. Future back takes the other view where the company takes slow steps with an eye on the growth. Platforms and partners need to be brought onside for this entire venture. Customer and channel engagement has to be a key feature of the process.

Source:https://www.forbes.com/sites/baininsights/2018/04/11/the-digital-challenge-through-a-private-equity-lens/amp/

Uploaded Date:05 June 2018