A survey conducted by professional services firm EY during 2016 reveals that private-equity firms are dedicating significant resources to noninvestment-related tasks, such as regulatory reporting and increased investor reporting.

Mining companies regularly use private equity as an alternate means of raising capital.

The EY survey was conducted from August to December 2016, with 31 private-equity funds telephonically interviewed and another 103 responding to an online survey.

According to the survey, CFOs believe that the future of their business will require them to make their teams more professional by retaining and developing key talent, while also incorporating technology to create better investment opportunities. In addition, there is also a call to automate many of the time-consuming manual processes.

Success in the future will, in many ways, depend as much on flawless operation as great ideas and innovative thinking. However, the report suggests that using current resources to build the private- equity firm operating model of the future will be a challenge.

In terms of data and digitalisation, there is a disconnect between managers constantly investing in new technology solutions, while many CFOs still rely on old- fashioned spreadsheets. Investments, to date, have been largely tactical in nature, to deal with operational challenges related to investor requests, compliance and regulation. Firms have started to invest in new programs in portfolio analytics, digital platforms supporting better communication with investors, and increased automation of routine processes. However, CFOs have indicated scepticism regarding a one-size-fits-all solution.

Regarding talent, the report reveals that CFOs are finding it increasingly difficult to engage and retain talent. Although private equity can still attract bright, motivated graduates, they are no longer committing to a 25-year career within the industry, as was the conventional norm. Responding to the survey, 90% of CFOs expect new employees to remain with their companies for less than five years, thereby making the development of talent difficult and the logic behind doing so questionable.