Online Private Equity Marketplace Trends

Goals

To promote a proposed solution for the private equity marketplace industy by researching 4-5 recent trends in the area such as major challenges and investor experiences, along with examples of the trends.

Early Findings

Limitations to Exisiting Private Equity Systems

  • Gainsight found that there are current limitations to existing private equity systems that is affecting customer success.
  • Gainsight states that the challenges in customer success necessitates a separate platform. The four main challenges included blending a variety of data, analyzing the data in a scalable way, driving proactive human/digital outreach, and modeling clients the way they experience your platform.

Using Third-Parties

  • Private equity firms are using third-parties to help with internal valuation requirements for financial reporting since there is a large amount of capital and resources needed to make a deal.
  • An example of a third-party being used is VRC.
  • These third-parties can independently evaluate portfolio investments and allows the equity firm to outsource work that takes stress off of teams.

Continued Rise of Mega-Funds

  • 2019's mega-fund numbers were projected to surpass those of 2018. An international report found that during the number of mega-funds from Q1 to Q3 was 4x as high as the same amount of time in 2018.
  • Fintech companies are the leading industry in mega-funds. In 2018, venture capitals raised by U.S. tech start-ups totaled $100 million, which came from mega-funds. An example of a fintech company that used mega-funds was the San Francisco-company Blend.

Summary of Initial Research

  • Through our initial hour of research we were able to find private equity market trends. However, they were not specifically related to platforms.

Proposed next steps:

You need to be the project owner to select a next step.
As the initial research found there are trends in the private equity marketplace, there was less evidence concerning platforms specifically. We were able to find some information on why the use of platforms is on the rise. We would provide 3-4 reasons for why online private equity platforms have gained momentum, such as the volume of deals and tracking of deal flow.
We could also provide 2-3 advantages of using online private equity platforms such that include connecting investors with entrepreneurs and being able to make deals master from anywhere in the world.