2024 Outlook: The Future of the Private Equity Industry

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.

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.

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.