How Shifting Private Equity Trends Impact Growth Objectives

Private equity firms are doubling down on operational improvements, ESG goals, and digital innovation. Here’s how portfolio companies can align with these new priorities through seven actions: 

1. Run a Tight Ship 

Blackstone centralized procurement for portfolio companies, cutting costs and improving margins. 

Action: Conduct an audit of your procurement processes to identify areas for cost savings. 

2. Get ESG-Savvy 

Carlyle Group incorporated ESG metrics into its company valuations, attracting both top investors and eco-conscious customers. 

Action: Define measurable ESG targets that resonate with your audience and stakeholders. 

3. Invest in Digital Tools 

KKR drove automation in its manufacturing investments, increasing efficiency and lowering costs. 

Action: Identify manual processes ripe for automation and prioritize implementation. 

4. Push Product Innovation 

Hellman & Friedman backed software companies that introduced disruptive SaaS products to tap new markets. 

Action: Dedicate part of your R&D budget to exploring market-disrupting products or services. 

5. Create Transparency 

Real-time reporting tools gave PE firms like Advent International visibility into the performance of their portfolio companies. 

Action: Upgrade your reporting to include live dashboards for financial and operational metrics. 

6. Focus on Niche Markets 

Advent International found high returns in niche markets like cybersecurity and healthcare IT. 

Action: Double down on niche areas where you have specialized expertise. 

7. Streamline Customer Experience 

Thoma Bravo portfolio companies simplified product offerings to reduce friction and improve satisfaction. 

Action: Audit your product line to remove unnecessary complexity. 

FintastIQ empowers portfolio companies with performance dashboards, ESG tracking capabilities, and tools to streamline customer experiences, keeping growth aligned with PE goals.