Differentiation through data

Report Data Insight 16 November

Differentiation through data

Harnessing the power and potential of data

Insights from data are a game changer for private markets, but firms are moving at dramatically different speeds when it comes to technology uptake.

These are turbulent times for dealmakers. Even as the pandemic recedes, fresh headwinds are brewing, including growing geopolitical uncertainty, rising inflation and higher borrowing costs.

Finding ways to boost resilience and enhance performance during all this disruption is a priority. Better use of data—and data tools—can make all the difference. How are private markets tapping into the data opportunity? Which technologies are proving to be most valuable and where are they being used? And what obstacles must be overcome?

The purpose of this study is to answer those questions. In the first section, we consider the current state of play in private markets. While there is no shortage of ambition, there remains a vast gap between the largest and smallest firms when it comes to adopting digital capabilities. Meanwhile, settling on a data strategy is proving to be a challenge for firms of all sizes.

The second section delves into data analytics, a subject of increasing interest for private markets. Respondents are looking to technologies including machine learning and predictive analytics as they race to build a competitive edge. There is also the recognition that technology alone is not enough—which is why many respondents are devoting resources to boosting data literacy.

The thorny question of how best to manage ESG data is examined in the third section. As our study shows, the lack of standardised reporting frameworks and inconsistent data means that satisfying the ever-growing demand for ESG reporting is a challenge for firms across the spectrum. This is a problem that is likely to get worse before it gets better.

We conclude this study by highlighting some of the steps that private market participants can consider as they weigh up their data and technology options.

Differentiation through data is also available at https://dtd.aztec.group/differentiation-through-data-report/

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