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IT Considerations for Starting A Private Equity Firm

By Amanda Daly | Thursday, October 26th, 2017

Our two-part feature covers the legal and IT considerations for launching a private equity firm. In Part 1 we talked legal considerations for launching a private equity firm. Now on to Part 2 where we will talk IT considerations. Be sure to watch the full webinar replay for deeper guidance from our expert Tim Kennedy, SVP of Eze Castle Integration.

On the technology side, there’s a lot to consider. Whether you’re spinning out of a successful fund or beginning your own venture from scratch, it’s imperative to have enterprise-grade IT when you’re managing and growing a portfolio of companies.

When selecting your IT provider, you want to consider these:

  • Company background and financials

  • Service team and org chart

  • Breadth of services

  • Information security policies & practices

  • Disaster recovery and business resilience

  • Do they have an extensive partner network? Can they leverage industry-leading vendor relationships for infrastructure, software, etc.?

  • Do they have a global presence? If your firm expands across the US or internationally, can they support additional offices?

Why are private equity firms going cloud?

Download Private Equity Outsourcing is Going Cloud, but Which One?One of the main things that we have been seeing is that nearly all new private equity startups are using the cloud. Many of the private equity firms are not looking to be in the IT business and are not looking to train an IT staff. You probably have a good understanding of the drivers causing firms to select the cloud, but here are the primary ones:

  • Predictable costs

  • Flexibility and scalability

  • Enterprise security

  • Professional management and monitoring

The differences between public and private clouds are significant, and it’s important for firms to closely evaluate their individual needs and identify which type of cloud platform will be best suited to them. There are also hybrid clouds to consider – in many cases drawing the best of both worlds and giving firms increased flexibility alongside robust security and a more personal approach. 

Wrapping up on IT considerations, don’t forget to think about the future. Where do you see your firm in 2-3 years? Can your provider/platform support adding users or supporting additional office locations? We also advise firms to think through how they will manage risk- such as cybersecurity, disaster recovery, and business resilience. 

Get more insight into these private equity IT considerations by listening to the full 60-minute replay here or below.

Be sure to download our whitepaper, Private Equity Outsourcing is Going Cloud but Which One? to learn more about public vs private vs hybrid clouds.

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