Role of Technological Advancement in Private Equity Investment

The COVID-19 pandemic has put health care funding back in the limelight. Though much of the current consideration on the sector has centered on the race to develop and deploy a Covid-19 vaccine, the reality is private equity investment into the health care industry has steadily increased over the years. 

With intensified competition, dealmakers will have to take advantage of every means available, and technology has become a critical component of that effort. In today’s remote environment, sharing business intelligence, building relationships, and sourcing new business opportunities all need digital technologies.

To be the best at using technology, dealmakers need a platform that is built to manage the complexities of deal-making in health care. Regardless of the investment plan, health care deals involve a complicated web of partners, sponsors, lawyers, lenders, and advisors. However, once firms adopt a technology platform created to handle deals, relationships, and pipelines, dealmakers can start to build a single source of truth that enables them to share institutional knowledge across the firm. In the end, the quality and convenience of that single source of authenticity are what differentiates the best firms from the rest when it comes to leveraging technology. Dealmakers who can easily obtain exclusive data across critical functions, including business development, fundraising and investor relations, portfolio monitoring, risk management, compliance, and due diligence, can work more efficiently, make better decisions and reduce reliance on colleagues for routine data requests.

Some platforms even take it one step further and integrate with third-party data providers, allowing dealmakers to view the latest market intelligence side-by-side with proprietary data. Much like the global pandemic has shifted the conversation in health care investment; it has also shifted the conversation when it comes to leveraging firm-wide technology. Ultimately, technology provides a 360-degree picture of the business, the factors affecting the industries in which they operate, a historical view of transactions in that market, and so much more.