The document discusses how technology can enhance private equity operations by improving data management, reducing costs, and optimizing client experiences. It emphasizes the transition to cloud-based solutions for greater scalability and efficiency, highlighting the importance of automation and outsourcing to improve compliance and decision-making. The overall message is a push for private equity firms to adopt modern technologies to remain competitive and enhance their business operations.

1. FOR PRIVATE EQUITY
OPERATIONS, IS THE
SKY THE LIMIT?
HOW TECHNOLOGY CAN ENABLE
PRIVATE EQUITY FIRMS TO RISE ABOVE
THE COMPETITION

2. “I WISH DATA MANAGEMENT
AND REPORTING COULD BE
A BIT MORE TEDIOUS,”
SAID NO PRIVATE EQUITY INVESTMENT
PROFESSIONAL, EVER.

3. WHAT IF PRIVATE
EQUITY OPERATIONS
COULD BE BETTER?
(They can.)

4. FOR PRIVATE EQUITY FIRMS, BETTER
OPERATIONS CAN MEAN …
Reduced costs
associated with time
and resources to
manage data and
comply with reporting
requirements
More time to spend
analyzing and
acting on data to
optimize
investments and
strategies
An enhanced client
experience
grounded in efficient
communication,
data transparency
and flexible reporting

5. HOW CAN TECHNOLOGY PROVIDE THE
LARGEST IMPACT WITHIN YOUR BUSINESS?
6%
11%
17%
25%
41%
18%
15%
23%
18%
26%
22%
21%
22%
17%
17%
28%
26%
17%
21%
8%
25%
27%
21%
19%
8%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
More standardization*
More informed decision-making
More automation
More agility
More productivity
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
All data is sourced from a 2016 survey of over 300 private equity professionals by FIS and Lantern Insights
*Due to rounding, some totals do not equal 100%.

6. TO REMAIN COMPETITIVE,
INDUSTRY PARTICIPANTS MUST
MOVE MORE OF THEIR
OPERATIONS TO THE LATEST
ONLINE PLATFORMS THAT
COMBINE SCALABILITY,
FLEXIBILITY AND
INTEROPERABILITY.

7. WHEN THE SKY’S
THE LIMIT, LOOK TO
THE CLOUD

8. WHICH TECHNOLOGIES ARE YOU CURRENTLY
EXPLORING?
63%
67%
68%
72%
78%
37%
33%
32%
28%
22%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Basic communication tools
Analytics/business intelligence
Mobile
APIs/data integration
Cloud
Yes
No

9. THE RISE OF THE CLOUD
3%
27%
70%
Despite the industry’s
conservativeness and
its reluctance to share
proprietary investment
data and contacts,
participants in our
private equity survey
are surprisingly open
to the cloud.
What role do you see for the
cloud within your business?
No role
Major role
Minor role

10. WHAT IS YOUR PRIMARY BUSINESS
REASON FOR USING THE CLOUD?
4%
5%
12%
23%
28%
29%
Other
Compliance
Regulation
Cybersecurity
Cost
Data privacy

11. THE RATIONALE FOR SHIFTING TO
THE CLOUD INCLUDES THE
INHERENT SCALABILITY AND
PROCESSING POWER OF
DISTRIBUTED ONLINE PLATFORMS
AS WELL AS THE REDUCED
MANAGEMENT BURDEN
ASSOCIATED WITH EXTERNALLY
HOSTED SERVICES.

12. AUTOMATE TO
ELEVATE

13. TO SPEND LESS TIME
ASSEMBLING DATA AND MORE
TIME ANALYZING OR ACTING ON IT,
YOU NEED TO AUTOMATE
PROCESSES TO MAKE THEM LESS
LABOR-INTENSIVE. IN PRIVATE
EQUITY, AUTOMATION HOLDS
PARTICULAR PROMISE IN EASING
COMPLIANCE PRESSURES.

14. IN WHICH AREAS COULD TECHNOLOGY MOST
HELP YOUR BUSINESS WITH REGULATORY
COMPLIANCE?
9%
11%
12%
20%
24%
25%
Gathering more data
More efficient decision-making
Automated tracking
Automated auditing
Automated reporting
Automated data collection/aggregation

15. ROLES WILL END UP BEING DIVIDED
INTO THOSE THAT CAN BEST BE
UNDERTAKEN MANUALLY AND
THOSE THAT SHOULD BE
AUTOMATED. PRIVATE EQUITY
FIRMS SHOULD BE READY TO
EMBRACE THIS TECHNOLOGICAL
SHIFT.

16. OUTSOURCE WHAT
WEIGHS YOU DOWN

17. OUTSOURCING, ESPECIALLY
WHEN COMBINED WITH NETWORK-
ENABLED TECHNOLOGIES,
ALLOWS PRIVATE EQUITY FIRMS
TO FOCUS ON WHERE THEY ADD
VALUE WHILE ALIGNING WITH
INTERNAL PRIORITIES TO MANAGE
COSTS AND INCREASE
EFFICIENCY.

18. BY 2020, MY BUSINESS IS LIKELY TO
OUTSOURCE …
4%
40%
44%
54%
None of them
Middle-office functions
Front-office functions
Back-office functions

19. 19
When investors undertake due
diligence on a fund manager,
you need to have an established
platform to manage your
operations or outsource to a
third party. One of those options
has to be in play.
Tony Chung
head of product management and
strategy, Private Equity, FIS

20. WILL YOUR
OPERATIONS HELP
YOU RISE ABOVE
THE COMPETITION?
(We hope so.)

21. BETTER OPERATIONS
CAN MEAN MORE ROOM
TO INVEST IN THE CLIENT
EXPERIENCE

22. THE PRIVATE EQUITY INDUSTRY’S
EFFORTS TO REINVENT ITS
RELATIONSHIP WITH TECHNOLOGY
REFLECT A RECOGNITION OF THE
CRITICAL IMPORTANCE OF
TECHNOLOGY TO WINNING AND
RETAINING CUSTOMERS AND TO
PENETRATING NEW MARKETS.

23. WHERE WILL YOU INCREASE INVESTMENT
THE MOST BY 2020?
5%
9%
19%
33%
34%
Disruptive technologies/companies
Talent management
Regulatory compliance
Market expansion
Customer experience

24. “SEE YOU LATER,
TECHNOLOGICAL
DARK AGES.”
THAT’S WHAT WE’RE HEARING LOUD AND CLEAR FROM
THE GLOBAL PRIVATE EQUITY SPACE.

25. LEARN
MORE
IN OUR
NEW
REPORT
getinfo@fisglobal.com
PRIVATE EQUITY
AND TECHNOLOGY:
THE PROMISE OF
TOMORROW
TO REQUEST YOUR
COMPLIMENTARY
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