Techtonic States - Private Equity Spotlight

BDO's Techtonic States study combines scenario planning with opinion research among business leaders.  It envisions four unique 2026 scenarios, analysing technology and market dynamics. The report examines the views of leaders in the PE industry.
Discover how technology will make or break business success for PE leaders.

BDO ’s Techtonic States study – which combines scenario planning with opinion research amongst business leaders – envisions four 2026 scenarios, analysing technology and market dynamics. In each scenario, advanced technology is critical, empowering organisations to mitigate risks and increase resilience.

This report examines the views of leaders in the PE industry and explores ways that they can mitigate risk and embrace opportunities in each of our four future scenarios. The PE market is undergoing radical tech-driven transformation, as innovation reshapes the market, but it is also one of the industries most vulnerable to cyber threats.

Tighter regulation is also impacting the investment sector, meaning that PE firms need to prepare for new legal and regulatory barriers while grasping the opportunities that new technology brings. PE firms have the power to harness innovative technology, such as automation and AI, to supercharge the whole lending landscape and unleash transformation and innovation across the wider corporate ecosystem by providing capital.


Top 5 strategies that PE firms are pursuing to gain a competitive advantage over the next 12 months:
  1. Data-based innovation of services, products and processes
  2. Adoption of AI and other advanced digital solutions 
  3. Shifting focus to higher-value products and services
  4. Increasing automation of tasks to improve productivity
  5. Reshaping our business model around AI, digitalisation and big data


Top five measures that PE leaders are taking to deal with the risks that their organisation faces:
  1. Increased research and development (R&D)
  2. Investing in innovation
  3. Investing in AI
  4. Investing in technology and digital transformation
  5. Increased cyber-protection
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