A recent study on General Partners (GPs) revealed some glaring shocks. A significant one is that economies of scale only arise after an AUM (Assets Under Management) investment of between 8 and 10 billion dollars by Private Equity (PE) firms. There is growing pain in this industry. There are layers of complexity, the moment investment figures cross the fifty billion mark. Certain functions tend to grab scale better than others. Astudy by McKinsey has revealed, how the use of digital techniques can help bridge this gap.   This includes the redesign of the client- journey across the touchpoints. Intelligent process automations need to be put in place. As far as possible, companies need to involve strategic use of business process outsourcing. Advanced business analytics is increasingly, a part of PE funding analysis. Digital sprints ought to be used up, as they’re often more productive than a longer route.

Source:https://www.mckinsey.com/industries/private-equity-and-principal-investors/our-insights/how-private-equity-is-tackling-operational-complexity

Uploaded Date:02 February 2019