The landscape for private market investors has changed dramatically during the past year. The high interest rate environment has contributed to record low deal volumes. Faced with steep borrowing costs, private equity firms have been focused on maximising value from the portfolio companies they are already invested in.

In this intelligence piece, we present hypothetical scenarios illustrating how PE firms can use alternative data to create value in portfolio companies. Exploring PE value creation with alternative data is a continuation of our series for private market investors. For those interested in reading some of our previous work, please see links at the end of this intelligence piece. In this piece, we discuss:

• The competitive state of value creation
• Five case studies: Creating value through alternative data
  • Software company looking to increase its sales revenue
  • Retail clothing store expanding store footprint
  • Sourcing “add-on” companies for a platform company
  • Automobile company looking to optimise its workforce
  • Ecommerce platform looking to increase its market share
• Portfolio monitoring and identifying exit opportunities
• PE firms and data monetisation for portfolio companies