Private equity – NLP and data analytics for private equity firms
With the vast amount of new interested parties the field brings, private equity investors need to adjust their value creation strategies by looking beyond financial and operational metrics during the deal origination period. One of the approaches that add a competitive edge is getting a perfect overview of their target landscape, whether that is during the pre-diligence stage or through monitoring the whole playing field to forecast where the general sentiment progresses.
Challenges private equity firms face
Analysts and associates begin and end their days by reflecting on what is happening in the markets. Analyzing target companies, deal opportunities and monitoring peers is their bread and butter, but the way of doing this in a pragmatic and efficient way is outdated. Challenges such as timely screening of many potential target investments, insufficient coverage or language barriers are present in their daily workflow, where retrieving the right insights is absolutely essential, yet quite challenging.
Whether it is for a deal that is currently in the making or the next day investment committee memo, additional relevant information adds value. Although many professionals in the industry make use of tools like Bloomberg, FactSet, or Pitchbook, they still do not capture the full picture as the tools are made for a broader market, providing every subscriber with the exact same angle on a company/industry in focus.
Private equity analysts and associates, however, constantly look for alternative solutions, which will help them achievecompetitive advantage by going deeper into their niche or looking beyond what is standard. Large PE funds, which have realized what it takes now have full departments focused on finding new angles, making the life of mid-market firms somewhat more difficult.
Solution: granular focus on signals that matter
Owlin for Private Equity taps into the deal origination and pre-diligence use-case, creating value across the investment team. By tapping into a vast number of sources across twelve languages and applying granular, tailor-made text evaluation taxonomies that look at a variety of signals mentioned in news, you are able to timely give attention to the right companies from long target lists. Owlin tailored themes for PE recognize mentions of potential deal origination signals around a company’s performance, and derive viable insights. Owlin helps increase both time and cost efficiency by allowing analysts and associates to prioritize their tasks and retrieve relevant information in their focus area all in one place. Thanks to a wide variety of automated taxonomies for text analysis, Owlin enables for continuous monitoring of peers, competitors, sectors, and more, giving a true 360º view on events that cannot be missed.
How Owlin helps private equity firms work more efficient
The Owlin for private equity solution significantly improves the time efficiency when it comes to market screening and points its users at the events that matter. Furthermore, Owlin’s tailor made deal origination themes help its users retrieve signals, which could otherwise be missed by other parties, providing a head start on such opportunities.