Leveraging potential

How does technology have the potential to streamline market processes and create value for operational professionals?

Tim Friedman: The way to think about technology is to consider the insights you can get from having the right technology in place. Where leveraging technology can add value is through the alignment of such tech with what is important for the business.

For example, thinking about the right technologies to support specific activities such as sourcing deals, executing deals and managing the portfolio. Technology firms should be driven by internal perspectives and a strategic roadmap based around the business. Such companies need to figure out what is important to them, not what technology is available.

What key areas are GPs are assessing when considering in-house operations versus outsourcing?

Friedman: A consideration we are seeing is employee retention; keeping employees happy and engaged in a competitive market. GPs are considering which non-core tasks can be taken away from employees and how to leverage outsourcing so employees can focus their time on doing the things that matter the most.

Have the difficult wider market conditions impacted Holland Mountain?

Friedman: It has been somewhat of a positive year for us insofar as the amount of interest we have had in providing services to firms that might have had a hiring freeze, for example. These firms are not looking to add headcount currently but they are still growing complexity in the business. Despite challenging conditions, we have been proving the value of leveraging consultants to help with technology and operations.

What role does AI play in the private equity sector and how can it shape the landscape in the future?

Friedman: When people talk about AI today, they are referring to generative AI. My view is that there seems to be a general belief in the industry that all firms should have some kind of AI strategy. But it is not immediately clear what the case for generative AI is and where the real value is going to be.

Firms need to identify the potential for the technology in the same way you might look at something like Excel.

They should get the technology in place, start using it and get used to writing prompts, so as things evolve, they are in a good place to be able to leverage AI. There is huge potential for generative AI but we do not need to get bogged down with the specific uses for it yet.

Firms must also understand that there are options to leverage platforms within a SaaS wrapper where they can access AI technology in the same way they would purchase any other kind of software, and leave it to the professionals to get the most value from what AI can offer.

Have you identified future trends in the private equity market?

Friedman: Businesses are keen to put in place a more robust and strategic view towards their data. This is important when we are talking about things such as generative AI and being able to derive insights from all the data you have. There is far more demand for firms to have an enterprise data management solution plan, roadmap and platform so they are able to effectively leverage new technology as it is coming out. Firms are looking for more agility to use new technologies and not become tied to any specific vendors when it comes to certain workflows they need to complete.