View all insights
image

Five Ways Deal Performance Data Can Power Up Private Equity Investment Program

By the middle of 2021, private equity buyout deals had already matched the full-year totals for 2019 and 2020. For the first time, buyout deal value is on track to top $1T.

The pressure on GPs has never been more intense. With more competition, more opportunity, and more capital at play in the industry, firms are looking to digital transformation to give them a competitive edge.

Private equity investment data analysis is a key component of this shift. Firms are experimenting with how to incorporate quantitative analysis into their processes to achieve greater efficiency and higher private equity returns.

The advantages of doing so are clear. Those firms which are at the forefront of this shift can triage opportunities more effectively, test their investment theses more quickly, and gain a competitive advantage over their peers.

But even though private equity investment professionals are producing and consuming more data than ever, their use of third-party deal performance data in the decision-making process has focused on fund-level returns. Deal-level returns data has been difficult to find, difficult to trust, and difficult to use effectively.

This is changing. As scalable and reliable solutions are developed, deal performance data is giving firms an unprecedentedly deep level of insight on which to base their decisions. Deal-level analysis has applications in deal sourcing, due diligence, investment thesis testing, sector strategy, benchmarking, and fundraising.

Firms that are embracing the next frontier of private equity digital transformation are gaining greater efficiency, efficacy, and impact in their investment decision-making processes. Here are five ways that deal performance data is helping them to unlock their full potential and achieve stronger, more resilient private equity returns.

Register to continue reading directly on CEPRES.

Read next

image

CEPRES AInsights: Transforming Private Capital Markets for LPs and GPs

As private capital markets become increasingly complex, leveraging data-driven decision-making is essential for staying ahead and making informed investment choices. Private market investors often face an overwhelming influx of portfolio data, making it difficult to extract meaningful insights quickly and efficiently. Factors such as increasing data complexity, regulatory pressures, and market volatility make real-time, AI-powered insights essential for maintaining a competitive edge.

image

The New Era of Data-Driven Decision-Making in Finance

The evolution of artificial intelligence in the private capital markets represents a transformative journey that has reshaped how investment decisions are made, risks are assessed, and capital is allocated. Over the past few decades, the integration of AI into these markets has shifted from rudimentary data processing to sophisticated algorithmic analyses that enable unprecedented insights into market dynamics and investment opportunities.

image

Choosing the Right AI for Private Market Investing in 2025

Download our AI checklist and discover the key factors you need to consider to unlock AI’s full potential while mitigating risks.

Client Exclusives

Private credit: Spotlight on deals — the winners and losers & bounce back from the crisis

Read more
image

Navigating Private Debt: A Deep Dive into Historical Risk and Returns

Read more
image