December 2023 | Report

2024 Outlook: The Future of the Private Equity Industry

A focus on data monetization, robust cybersecurity, and the growing role of AI sets the stage for an industry looking to rebound

2024 Outlook: The Future of the Private Equity Industry

The economic volatility that defined most of 2023 had a significant impact on private equity.

This report will cover three key areas where private equity firms will be focused in 2024. Each section of the report will focus on one of these areas, offering insights and projections for the year ahead.

2-Minute Takedown


Data monetization as a value creation lever

Private equity firms are rethinking the value of their portco’s data and rapidly recognizing it as an asset to both accelerate growth and generate new revenue streams through direct monetization. This shift is reshaping how data is perceived, transforming it into a critical factor for deal valuations and a mechanism to drive value creation during hold periods.

Addressing gaps in portco cybersecurity

Cybersecurity is an increasingly essential priority for private equity firms both during diligence and post-close—but there’s a lot of ground to cover, and firms are struggling to implement controls in a timely manner and track coverage of non-negotiable cyber controls across their portcos. This leaves significant gaps in cybersecurity measures within many private equity portfolios.

AI and portfolio value creation

There has been a 78% increase in private equity firms using AI for investment analysis and decision-making in the last two years. Now, with generative AI tools becoming a hot commodity, understanding the potential uses for Generative AI—and developing strategies to deploy this technology quickly and effectively—will become a key differentiator between private equity funds in years to come.
2024 Outlook: The Future of the Private Equity Industry

2024 Outlook: The Future of the Private Equity Industry

The challenges, trends, and actions that will define the year in private equity. Download our 2024 Outlook.

West Monroe’s 2024 Outlooks

2024 will bring both challenges and opportunities for businesses. The common language across industries? Efficiency and optimized workforce management. Above all, a collective dedication to digital innovation will steer the course to success in the coming year.

Read All 2024 Outlooks

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