Technological innovation is transforming nearly every industry across the globe, and private equity is no exception. The Wall Street Journal PRO Private Equity’s Laura Kreutzer asked senior professionals from across the industry to share their views on how technology is affecting the industry.
Kreutzer asked Amy Newlan, Head of Client Development at Maestro by Accordian (the leading software platform built for private equity-backed companies) about the digital revolution and how it has affected private equity firm operations:
“Private equity is evolving into ‘private techquity.’ If PE shies away from operational adoption of technology, PT embraces it as critical to efficiency. In fairness, this evolution has been painfully slow: moving from QuickBooks to back-office tools like Investran and then CRMs like DealCloud. Now, nascent tech offerings targeting PE firm operations are all the rage. What’s driving the techquity? In part, a new wave of tech-centric firms who’ve enlightened PE to tech’s operational benefits. In part, the technologists/tech veterans who’ve been recruited as operating partners and have preached about tech’s transformative capabilities. Mostly, it’s the recognition that with so many sponsors chasing the same dollars during fundraising, tech is becoming the differentiator. It’s a mandate from LPs and it’s accelerating exit.”