Leveraging Tech and Talent to Unlock Value in 2024
Apr 5, 2024
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Brett Hickey from Star Mountain Capital and Engin Okaya from Prudential Private Capital discuss leveraging AI and technology for value creation in private equity. They also talk about talent management strategies, innovative approaches to deal-making, and the industry outlook for 2024.
PE firms exploring AI and tech for competitive edge.
Strategic talent recruitment is a top priority for PE firms.
Optimizing portcos amidst challenging headwinds.
Deep dives
Impact of Challenging Year on Deal Activity and Value Creation Strategies
The podcast episode discusses the impact of a challenging year on exits, supply chain challenges, and changing consumer behavior, leading to lower margins and rising debt costs. Companies shifted focus to value creation, optimizing talent, and exploring new growth strategies like smaller token positions to navigate competitive markets.
Exploring Acquisition and Value Creation Strategies in the Face of Challenges
Guests elaborate on their approaches to deal acquisition and value creation, focusing on add-on acquisitions, innovative portfolio valuation maximization roadmaps, and technology investments. They highlight challenges faced due to COVID, strategies for building better portfolios, and successful exits amidst adversity.
Impact and Adoption of Emerging Technologies in Portfolio Companies
Technological innovation, particularly in AI, is explored with a focus on its impact on HR functions, job descriptions, language translations, and enhancing internal portfolio analytics. Strategies for evaluating potential investment targets based on technological capabilities, customer insights, and revenue stability are emphasized for maximizing value creation.
Talent Management and Retention Strategies for Value Creation
Guests discuss talent management as a key priority, emphasizing equity incentives, talent retention through MSOP plans, and aligning talent with value creation plans. They delve into motivating teams through shared equity profits, adapting to evolving demographics, and nurturing younger talent for sustained business growth.
Predictions and Trends for Private Equity in 2024
Anticipated trends for 2024 include monitoring the cost of capital, inflation rates, and real estate market implications on decision-making. Guests highlight the significance of consumer habits, inflation data, and the commercial real estate's debt wall's potential impact as key areas of focus for the upcoming year.
On BDO’s latest Private Equity PErspectives podcast episode , Brett Hickey, founder and CEO of Star Mountain Capital, and Engin Okaya, executive managing director at Prudential Private Capital, joined host Todd Kinney to discuss:
AI and other emerging technologies: How PE firms and their portcos can strategically leverage new and impactful tools to gain a competitive edge.
The increasing focus on portco talent: Why strategic recruitment and retention efforts remain a top priority for PE firms and their portco leaders.
PE’s evolving approach to value creation: How PE firms are creatively optimizing their portcos while navigating challenging headwinds.
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