Digital for Private Equity 101 – Strategic Growth Through Portfolio Optimization

Cherry Bekaert: Private Equity Industry Guidance

Mar 11 2022 • 26 mins

Business and profit optimization is at the forefront of any Private Equity investor and management team dialogue. As noted in our recent Private Equity Industry Report, the record amount of M&A activity in 2021 may certainly lead to even more scrutiny surrounding post-acquisition integration and portfolio optimization through the use of technology, systems and process improvement. For Private Equity funds and portfolio companies, a digital transformation strategy can be an essential component in optimizing investment performance, profitability, and value.

In this episode of The Drawdown, we examine what digital transformation means from the perspective of a Private Equity fund and its portfolio companies, why a “digital strategy” is increasingly replacing a “digital project” mindset, and how effective strategies can increase integration success and improve ROI upon exit. Topics covered in this episode include:

  • What is digital strategy for Private Equity?
  • Things to consider in developing a digital strategy
  • Practical application: a portfolio company case study
  • How digital strategies improve ROI
  • Outlook on US middle-market Private Equity and digital transformation