The future of data analytics in Private Markets

With investors demanding more transparency and insights from their fund managers, the ability to access, analyse, and adequately present data is gaining importance among successful private market participants.

We are currently seeing an increasing need from GPs to better understand the trends and options available for using analytical tools in their day-to-day work. Therefore, AssetMetrix together with Private Equity Wire hosted a lively panel discussion, shedding light on emerging trends, best practices, and the pros and cons of outsourcing vs. inhouse development of analytical firepower.

During the panel we covered these topics from different angles, showcasing perspectives from a fund-of-funds, a VC fund, a placement agent, and a service provider.

Key Takeaways:

• The data challenge: The growing importance of data sourcing, usage of comparable formats, common taxonomies, and a solid database for automated analysis
• Outsourcing paving a way for smaller managers to step up a level and achieving economies of scale – defining core competencies and outsourcing the rest
• How developing analytical capacity will benefit everyone, leveraging automation and unleashing potential – however not completely replacing the human factor in the investment process
• How well is private equity addressing climate issues / bringing solutions at a portfolio level?
• LPs investing in GPs that use data science within their process will achieve better results, better reporting, better decision making for future investments

To discuss your specific analytics challenges and see how we can help, contact our team!
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