The State of Digital Transformation in the Private Markets

The Technology-Powered Future for Private Equity

Ontra and Private Equity Wire surveyed more than 50 professionals from private equity firms globally, with the majority from North America and Europe.

The goals were to understand the current state of transformation within private equity and asset management firms, key trends and barriers, and where firm leaders’ priorities lay.

• Positively, almost all PE firms surveyed were at some stage of digital transformation (98%). However, only 7% would classify themselves as fully transformed, and less than half were actively implementing digital solutions across their business.
• Unsurprisingly data and business analytics top the technology wish list for all firm sizes. Next on the list is AI and machine learning, with 75% firms with $1bn+ AUM considering this an essential technology.
• Most firms agree that digital transformation will improve investment decision-making and returns (65%) and make firms more attractive for LPs (61%). Seventy percent of respondents also agree that fundraising and investor relations was a top area that could benefit from transformation.
• Nearly a third of firms (32%) said that while some digital tools and processes have been implemented, adoption remains limited. Resistance to change from employees was placed among the top three obstacles to adoption (33%) — signaling a clear need for a structured approach to change management.