Private equity has entered a far more regulatory era and tax authorities are becoming more aggressive, which means that creating value more than ever before requires active portfolio management as firms adjust their investment strategies and compliance procedures.
Today, private equity has grown into global organisations, and our managers have taken a more institutional approach to more intensified risks where institutional investors look for certainties.
Private equity firms have to create sustainable growth in portfolio companies and take emerging markets far more seriously than they have in the past while precluding risk.
Today, fund managers have been bound by the new regulations to increase the burden of compliance and our managers spend time a lot of their time planning and preparing, while investors demand greater transparency as a lever challenging private equity managers, asking them to carefully explain processes and valuations.
Faced with greater demands for transparency and a need to mitigate operational risks, managers have adopted new operating models, involving infrastructure, human resources, processes, technology and organisational design.