Leading voices in the private equity technology industry, Maestro‘s Amy Newlan and DealCloud’s Ben Harrison, recently teamed up to co-write an article that was published in PE Hub title “Covid: private techquity’s tipping point.” The insights shared in this article were derived in part from a webinar that the two organizations recently hosted titled “The Future of Work in Private Equity.”
In that webinar, the panelists shared thought leadership regarding the key considerations for private equity professionals as travel and other restrictions are lifted. These firms need to be prepared to make the most of the time and productivity lost during COVID-19 for their own sake and for the sake of their portfolio companies – an effort which will undoubtedly require expert-level planning and strategic execution.
See below for key takeaways from the PE Hub article:
“2019 was the year private equity yielded to technology adoption. It was the year Private Techquity was born. Or so we thought. Turns out the birth announcement was premature.
Covid has done many things to PE (misalignment of valuation expectations, slowing of deal activity, downward trajectory of fund performance), but most critically, it has exposed the industry’s digital façade. Covid laid bare PE’s technological inadequacies – and how those inadequacies threaten sponsors’ fiduciary responsibilities during this new normal.
Because, that new normal will demand digital adoption beyond Excel and Zoom. Yes, PE will need technology to replace the face-to-face rhythm of how deals get done, but it will need more sophisticated systems to meet LPs’ heightened bar. It will need tech that can: Digitally articulate firms’ unique value creation plans (VCPs) and track them; Analyze the ‘middle’ of the portfolio (given a post-covid world in which that middle has an outsized impact on fund performance); and Enable team alignment/accountability (rather than just rugged partner individualism).”