Introducing Pari Natarajan
Pari Natarajan is the CEO of Zinnov LLC, a leading Management Consulting firm that helps organizations globalize their businesses, tackle organizational challenges & build institutional capability. Pari and his team assist technology companies in improving their engineering efficiency and innovation capabilities through the effective use of globalization. He also works with large enterprises to help them build their internal technology organization and transform them into digital enterprises.

What You Will Learn
The Basics of Value Creation in PE Deals

Ways PE Firms Can Successfully Transition a Business to a SaaS Model

How AI is Revolutionizing the Private Equity Space

Breakdown

[00:45] Getting to Know Pari Natarajan

[01:20] Common Mistakes by PE Firms and Their Portfolio Companies

[02:37] Investment Opportunities for PE Firms in 2023

[05:03] Steps to Successfully Transitioning to a SaaS Model

[06:31] Why the Tech Industry is so Attractive for PE Firms

[09:35] Technology Adoption in Private Equity

[14:41] AI in Private Equity and What it Means for the Industry

[19:17] Understanding the Core Aspects of Value Creation in PE Deals

[22:26] Why Growth is Risky Business in Private Equity

[24:57] Things Pari Likes and Dislikes About Private Equity

[26:50] Pari's Go-To Self-Improvement Resources

[27:31] Parting Thoughts

Investment Opportunities for PE Firms in 2023
Most private equity investors agree that 2022 was an okay year for PE firms. And with inflation and volatility still an issue in this economy, we could still have unique opportunities in 2023. That said, Pari believes PE firms should focus more on industries that provide recurring revenue streams. However, the SaaS model of selling subscription-based products is no guarantee of success. Companies with a concrete SaaS model are valued much higher than companies without a subscription model. Plus, the steep incline in PE firms buying SaaS means competition for well-functioning companies is high. But with proper research, you can still find companies worth investing in, recapitalizing, and outright buying in 2023.

AI In Private Equity
AI use is hot right now in almost every industry. Private equity is the latest industry to experience an AI takeover as more businesses look to take advantage of the practical applications of AI in business growth. As Pari explains, most PE firms are using AI to improve the state of their workflows and increase efficiency in day-to-day tasks. He highlights that AI in private equity falls into these three major buckets:

Deal sourcing: AI can identify potential investment opportunities by analyzing large amounts of data from various sources, including social media, news articles, and industry reports.
Automate Manual Processes: Most processes in private equity firms are outdated and inefficient, with many of them manual. PE firms can streamline workflows by using AI to automatically update these processes and facilitate the transfer of data instantaneously with little to no manual intervention.
Performance Through Systems of Intelligence. AI can help private equity firms optimize the performance of their portfolio companies by analyzing large amounts of data and identifying opportunities for improvement.

How to Contact Pari

Pari's LinkedIn : https://www.linkedin.com/in/parinatarajanzinnov/

Pari Natarajan on falling behind without technology utilisation and what you are missing on value creation

The Private Equity Podcast, by Raw Selection