Exploring alternative data use cases for private equity investors
While hedge funds have been using alternative data for the last 15 years, the private equity community has been a much slower adopter. But with an uptick in data science headcount in the private equity sector, it suggests the narrative is about to change. This article discusses the challenges PE investors face in using alternative data to drive returns and gives some examples of the essential dataset types that all private equity investors should consider for sourcing, due diligence and portfolio performance.
PRIVATE EQUITY AND ALTERNATIVE DATA – A SLOW ROMANCE
The delayed adoption of alternative data by private equity firms could be attributed to a less clear return on investment from using alternative data. However, in 2019, industry reports showed that