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:

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