The private equity world needs a digital transformation glow-up (2025)

Private equity has a legacy system problem. Too many firms are still running critical operations on spreadsheets, email chains, and outdated systems. The upshot? Deal execution drags and due diligence takes longer than it should, while reporting, KYC, and tax compliance are all a slog.

And it’s costing you. Every hour spent patching together data or chasing documents is margin lost. In a market where speed is everything, that’s more than inefficient, it’s a threat to your competitive edge.

The pressure’s mounting, with more data, more compliance concerns, and more demand for X-ray vision into operations. While you’re firefighting, newer, younger firms are entering the field armed with tech-first models and leaner, faster operations.

The fix isn’t yet another technology widget. It’s a joined-up, digital-first operating model that removes manual work, connects systems, and lets teams focus on value, not admin.

The current state of digitisation in private equity

PE firms often think of themselves as ahead of the curve. In some ways, that’s true, especially when it comes to analytics, deal tools, and portfolio company reporting platforms. In fact, according to Gitnux, 78% of private equity firms have increased their investment in digital transformation initiatives since 2020.

But under the hood, the story’s different. More established firms are often stuck with legacy software and stitched-together systems that weren’t built to scale. Newer firms have an advantage. They’ve started from scratch, with cloud-native, joined-up operations from day one.

It’s a two-speed industry. One group is flying, the other is stuck exporting data between platforms, tackling reporting errors, and relying on institutional knowledge to keep the machine moving.

Digital transformation shouldn’t mean you have to throw it all out and start again. It means building the connective tissue that makes your tech stack actually work, so you’re not relying on manual work like spreadsheets and (shudder) shared mailboxes to hold the bulk of the work together.

8 areas where digital transformation can unlock value for PE firms

1. Deal sourcing and data analytics

Deals move fast. If your pipeline’s spread across 5 spreadsheets and someone’s inbox, you’re already behind. Digital tools centralise deal flow, track origination in real time, and use analytics to track down the right targets faster. Add AI to the mix and you can prioritise targets, flag duplicates, and focus origination efforts where they matter.‍

2. Due diligence and document review

Diligence shouldn’t mean digging through PDFs at midnight. Automating document intake, extraction, and verification cuts weeks off deal timelines. Natural Language Processing tools can scan NDAs, contracts, and financials at speed, flagging risks early and freeing up your deal team to focus on the real questions. You still make the calls, you just get there faster.

3. Financial reporting and data reconciliation

Does month-end feel like trench warfare? Standardise reporting formats across your portfolio and automate data pulls from core systems. Reconciliations that used to take days will be done in hours. You get faster insights, fewer errors, and a portfolio that runs more like a single engine. No more chasing numbers across different formats and time zones.

4. Compliance management

KYC, AML, ESG, all essential to the private equity world. Get them wrong and the fallout’s serious. Digital workflows make compliance structured and repeatable. Automate checks, set audit trails, and trigger alerts. That means peace of mind that the right boxes are being ticked, every time. It’s a compliance solution that doesn’t leave your legal team drowning in admin.‍

5. Fund administration

Capital calls, distributions, investor notices, this isn’t glamorous work, but it’s definitely high stakes. Automate these workflows to reduce risk, eliminate version control chaos, and give stakeholders the transparency they expect. You get faster turnaround and a back office that doesn’t need doubling every time you raise a new fund.‍

6. Operational workflows

Every firm has hidden manual work chaos, onboarding steps buried in inboxes or SLAs missed because no one owns them. Orchestration fixes this, defining end-to-end workflows, assigning owners, and tracking progress. When you run operations on a real system instead of crossed fingers, you can actually scale without the wheels falling off.

7. Recruitment

Hiring is one of the biggest operational drags across a growing portfolio. Digital transformation can automate approvals and give hiring managers real visibility on progress. Whether you’re hiring a CFO or a customer success rep, recruitment should feel like a transparent pipeline, not a opaque black hole.‍

8. Expense management

Manual expense processes are slow, prone to errors, and a breeding ground for problems. Digital tools let you capture spend in real time and eliminate the paper chase. You get cleaner data, tighter controls, and way fewer “Can you just approve this?” emails.

Overcoming digital transformation challenges in private equity

Private equity is a balancing act. Rather than focusing on one business, you’re managing dozens.

That means you’re up against:

• Fragmented datasets spread across funds and providers
• Complex regulatory and financial requirements that shift by jurisdiction
• Partnership structures that make everything harder to track and reconcile
• Legacy systems patched together with manual workarounds
• Cybersecurity risks tied to sensitive data flowing across disconnected platforms

Why do digital transformation projects fail? →

No wonder digital transformation often stalls. But the best firms don’t wait for the stars to align. They start small, problem-solve, and build momentum. Here’s how…

• Start with the ugliest problems. We’re talking manual work, missed deadlines, and duplicated effort
• Don’t rip and replace. Orchestrate the tech stack you already have so systems, people, and data flow cleanly
• Prove value fast. Automate one reporting process, onboarding flow, or compliance checklist. Then scale.
• Bring your whole team into the room early. Transformation isn’t an IT project, it’s a business problem with a holistic tech and team solution

You don’t need a two-year roadmap or a full-stack rebuild. You need targeted fixes that make a measurable difference, fast.

Measuring the ROI of digital transformation in private equity

Forget vanity metrics. If transformation isn’t speeding things up, cutting manual resource, or improving client outcomes, you’re wasting time.

This is what good looks like…

Faster execution

‍Weeks shaved off onboarding, diligence, and reporting cycles.

Lower cost per process

Fewer people doing repetitive work. Less time wasted on rework, reconciliation, and error-checking.

Higher data accuracy

Less manual grind means fewer mistakes.

Improved visibility‍

Real-time tracking of work across teams, tools, and service lines.

More capacity, same headcount

Automation should free up your time to focus on high-value work instead of chasing admin.

This is where Enate comes in. We give PE firms and their portfolio companies the infrastructure to run service operations properly. You keep what works, we orchestrate the rest, bringing structure and visibility to your operations. Scale faster, with X-ray vision, control and consistency.