The impact of technology
Which of the following technologies will have the biggest effect on the private equity industry in the next 12 to 18 months? (Select top two)
Technology is not only having a direct influence on the selection and execution of PE deals, but also on the way PE managers run their own operations. As the PE industry has matured and grown assets under management (AUM), so has the regulatory spotlight brightened and investor expectations grown for more frequent and detailed investor reporting. This has recalibrated the demands on the operational models of firms, who have had to upgrade their technology stacks and back-office resources to keep up with higher compliance obligations and investor demands. Technology is also transforming the way managers invest and structure their core front-office operations, with firms now effectively using AI tools to parse deal flow, identify the best deal targets and expedite deal execution. It comes as no surprise, then, that GP survey respondents agree that technology is affecting both how firms are run internally and how they invest. A plurality of respondents overall (45%) agree that AI is one of the technologies which will have the biggest impact on the PE industry in the next 12 to 18 months, including half of APAC respondents (50%) and 47% of North American respondents. EMEA respondents more commonly point to potential impacts of cybersecurity (46%).
ArtificiǸl intȃlliȌȃncȃ (AI)
45%
50%
40%
47%
Cybȃrsȃcurity
36%
30%
46%
31%
Businȃss intȃlliȌȃncȃ Ǹnd dǸtǸ ǸnǸlytics
28%
20%
23%
36%
AutomǸtion/Robotics
27%
30%
31%
22%
Entȃrprisȃ/loȌistics softwǸrȃ
23%
30%
6%
33%
Cloud tȃchnoloȌy
20%
25%
28%
11%
Thȃ Intȃrnȃt of ThinȌs
16%
5%
20%
18%
45% of respondents agree that AI is one of the technologies which will have the biggest impact on the PE industry in the next 12 to 18 months.
BlockchǸin
5%
10%
6%
2%
EMEA
North AmȃricǸ
TotǸl
AsiǸ-PǸcific
14
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