View all insights

Private equity advisory and its role in the investment process

Private equity advisory plays a crucial role in guiding clients through various stages of the investment process, from deal origination and due diligence to execution and exit strategies. Its primary objective is to assist clients in making informed investment decisions, optimizing returns, and mitigating risks associated with private equity investments.

There are different parts to the advisory process, encompassing various stages of the private equity investment lifecycle. Below, we take a look at each of the components and how they contribute to the success of private equity transactions and the overall growth of investment portfolios.

Market Intelligence and Research play a role in enabling advisory firms to stay abreast of market trends, industry developments, and regulatory changes. It helps – both pre- and post- investment -- to provide clients with valuable insights and research that inform investment decisions and adaptive strategies based on the evolving business landscape.


Private equity advisory firms assist clients in identifying and sourcing potential investment opportunities, which is part of the deal origination process. This involves evaluating industries, market trends, and assessing target companies that align with the investment strategy and objectives of the private equity firm or investor.

Another critical phase in private equity transactions is due diligence. Private equity advisory teams conduct comprehensive due diligence to assess the financial health, operational efficiency, and potential risks of target companies. This process involves a thorough examination of financial statements, management teams, legal and regulatory compliance, and market positioning, in order to determine the fair value of a target company. The process involves analyzing financial metrics, market comparables, and other relevant factors to establish an accurate valuation. Proper valuation is crucial for negotiating terms and ensuring that the investment is aligned with the financial goals of the private equity firm or investor.

Advisory firms also work closely with clients to structure deals that optimize returns and align with the overall investment strategy. They assist in negotiating terms, developing financial models, and facilitating the execution of the transaction. This may involve structuring the investment as equity, debt, or a combination of both.

Post Investment

After an investment is made, advisory firms provide ongoing support in managing the portfolio of investments. This includes monitoring the performance of portfolio companies, implementing operational improvements, and addressing any challenges that may arise during the holding period.

Private equity advisory also plays a crucial role in developing and executing exit strategies. This could involve selling the portfolio company through a merger or acquisition, taking the company public through an initial public offering (IPO), or facilitating a secondary sale. The goal is to maximize returns for the private equity firm and its investors.

With the world’s largest private market investment ecosystem, CEPRES’ helps private market participants drive better investment outcomes through unmatched data granularity and insightful analytics. With CEPRES data and analytics, investors know where to invest and asset managers can unlock the best portfolio strategies. Because if you don’t have CEPRES, you don’t know.

Learn more about CEPRES’  market research capabilities.

Fund of funds
Fund performance
General partners
Generating alpha
Investing trends
Investment data
Limited partners
Market performance
Market research
Portfolio forecasting
Placement agents
Portfolio insights
Portfolio management
Portfolio monitoring

Read next


Private Equity Asset Allocation Models: Why High-Quality Data is Paramount

Private equity asset allocation models are sophisticated frameworks used by investors to strategically distribute their capital across different types of assets within the private equity universe. Asset allocation decisions involve determining the appropriate mix of investments across various asset classes, such as venture capital, growth equity, and buyouts, as well as considering factors like industry focus, geographic allocation, fund type, risk management strategies, and liquidity considerations.


Benedikt Hoefelmayr interviewed at BAI AIC 2024

Watch Benedikt Hoefelmayr's full interview at BAI AIC on Private Equity Liquidity Management in times of ELTIF2.


Whitepaper | Private Markets Look-through Data

In an era of political and macro-economic uncertainty, access to granular and accurate knowledge on investments is critical to meet portfolio challenges and goals. With accurate investment data, rather than guessing, you can unearth deeper insights, detect risk patterns, and uncover opportunities that elude those using only basic financial reports.

Download our whitepaper as we navigate the complexities of today's political and macro-economic uncertainty.

Client Exclusives

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

Read more

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

Read more