Technology in PE


There are some interesting technologies that I have come across in private equity that I wanted to talk about and would love to hear feedback from you all. In structured products involving private equity, there are some compelling technologies involving cash flow modeling, risk analysis and other related tools. For instance, I know of one firm that has a database of over 400,000 private equity transactions (company-level information) over a period of 25+ years. More on this subject to come in the future. I have also come across companies like Simudyne (www.simudyne.com) who specialize in creating high powered modeling software and technologies for a variety of verticals. By deploying these complex simulations, Simudyne has realized staggering cost savings and efficiencies for companies such as $200 million in annual savings for P&G; $500 million ROI for Unilever over 3 years, and a variety of other examples in financial services, telecommunications, pharmaceuticals, etc. I guess my thinking is that tools like these might be of interest to the private equity world in order to maximize efficiences and cost reductions for their portfolio companies. Some feedback has been that these firms are a dime a dozen, however, I have not been able to find similar offerings. What I would be interested in discussing further is the use of technology (like the ideas I presented above to begin the dialogue) in helping the private equity world (LPs, GPs, etc.) maximize value and returns. Who are some other players out there? What is the appetite out there for enhanced analytics and other tools? I would love to hear from you all. Feel free to contact me.