KEY CONSIDERATIONS

Private equity firms often have different requirements and priorities than other institutional investors when selecting an alternative dataset. To begin, we outline some of the key considerations below.

Bespoke research: A dataset that can provide bespoke research projects for PE investors would be well positioned to benefit this vertical. One-off projects help investors in making critical decisions while conducting due diligence or sourcing deals. Data-driven research is often more cost-effective than hiring an external consulting firm. As a result, we see healthcare vendors offering bespoke research projects for PE firms.

Flexible pricing: As PE investors may only need additional data for a specific cycle, a year-long subscription is not always appealing. Traditionally, alternative data vendors tend to sell annual subscriptions. However, negotiating a deal-by-deal pricing model ensures that the cost of the data can be allocated to the deal. We have seen many healthcare vendors offer flexible pricing arrangements that can be used by investors involved in private market acquisitions…