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Private Equity: The Answer to Uncertainty

Oct. 2 2020 by Pavel Klebanov, Senior Solutions Specialist - CCH Tagetik North America

Performance Management Budgeting & Planning

If you work in Private Equity, you know that uncertainty comes with the territory. There’s stock market volatility, recession fear and trade wars. And, of course, there’s the always-shifting political climate that promises a roller coaster ride in 2021.

Beyond those market-related factors, fast-changing technology across all industries is making it increasingly challenging to spot winners from losers.

Yet one thing that doesn’t change is expectations for stellar performance. This year, PE firms need to push past their 10% share of M&A deals done globally, while continuing to bring in new equity products yielding higher returns and more productive ways to invest capital at scale.

To manage the uncertainty and still deliver on performance goals requires new thinking—and new tools—to keep you on pace with change and ahead of the pack.

The Need for Advanced Analytics

That’s where advanced analytics come in. Advanced analytics are becoming essential to improve the due diligence process as well as post-close value addition for investments across different industries and stages of development.

No doubt, the data is out there, and we’re now able to gather it more efficiently and creatively than ever. Yet effectively harnessing that data remains a challenge for many organizations.

Fund managers need to manage much more information in real time. They also need the tools to leverage that information so they can spin off multiple what-if scenarios on the fly to provide greater insight into short-term impact, while also forecasting long-term effects.

The ability to harness, consume, and effectively leverage data enables leaders to gain the kind of proprietary insights that translate to an essential edge against the competition.

The Point Solution Problem

So you know what you need to do, but what’s the best path to making it happen?

There is a perplexing array of software solutions that are aimed at addressing each stage of the process, including deal generation and due diligence, performance measurement with analytics, compliance reporting, and the exit strategy process.

Here’s the key challenge, however. Each of these solutions address a specific pain point, and tend to lack flexibility to a fault. We call these one-trick ponies ‘point solutions.’ Yes, they can be effective, but only in the short term and for rather basic requirements. As your organization grows and the level of complexity increases, they fall short, requiring you to constantly find and implement new solutions.

This kicks off a time-devouring cycle. There’s need for another evaluation process and a sales cycle and a user adoption period in order to reap the benefits of new technology. And once the solution is in place it needs to be integrated and individually maintained. All of this takes a considerable amount of time and specialized resources, which ultimately makes the process less agile while increasing risk.

Maximize Performance with a Unified Solution

There’s got to be a better way. And there is.

CCH Tagetik enterprise grade Finance Transformation Platform mitigates the risks associated with point solutions and streamlines execution with one unified solution that can connect every aspect of operational activities that drive PE firm’s financial performance and maximize shareholders equity.

You get unmatched flexibility to tackle new challenges as they arise. In the time that it takes to source a new product vendor, a targeted solution can be put in place directly within the CCH Tagetik platform, tailored to your specific needs and incorporated right into your current process.

Wolters Kluwer CCH Tagetik customers take full advantage of the flexibility CCH Tagetik provides to tackle new challenges as part of their Finance Transformation Strategy.

Our customers can leverage the platform and tools they already know to advance their planning capabilities, streamline complex consolidation requirements, and improve quality of both regulatory and management reporting, which extends all the way to fully automated narrative and disclosures.

The Answer to Uncertainty

Uncertainty can’t be avoided, but it can be managed--and even leveraged to your advantage. The key is to have the right tools for the job.

Point solutions no longer cut it. Moving to a unified platform capable of creating solutions gives you the power and flexibility to adapt to change and hit your performance goals.

If you want to discover more watch the 2 Min Demo: AUM Planning in CCH Tagetik here.

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