Welcome to the third edition of our Private Equity Newsletter!
New advances in artificial intelligence are creating a buzz in tech M&A in 2023, that if backed up by capital deployment, could make up for the dip in private investment into the sector in 2022.
Machine learning and artificial intelligence present powerful opportunities to drive more sophisticated decision-making.
However, some argue that at this stage does not substitute for ensuring that core information flows within an organisation and delivers the right insights to key decision-makers.
Of course, AI such as ChatGPT are industry-shifting, but like all new technology, there are drawbacks – not least ChatGPT’s limit on using data beyond 2021.
"We continue to apply newer generative AI technologies to ensure that AI is a tailwind rather than a headwind"
-Avindh Kumar, Co-Head of Technology Sector Team, EQT
Read more here.
European PE firms pivoted away from large buyout deals in the first six months of the year, amid a slowdown in debt markets and uncertainty over valuations, to focus on their buy-and-build strategies, according to a report by Private Equity News.
"45% of UK companies expressed belief that their teams were not equipped to utilise advanced technology" (Hurst, 2023)
A study conducted by the UK Department for Education sheds light on the concerns of tech start-ups in the country. Nearly half (46%) of these start-ups cited a lack of skilled staff and hiring difficulties as their top two challenges for the year.
This skills shortage has arisen due to the rapid growth of start-ups and the increasing digitalization of non-traditional tech firms, contributing to a wider skills gap in the UK tech sector. In response, 80% of technology start-ups are investing in skill development to upskill their workforce.
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To address this issue, the UK Government is promoting skill development through its Join the Skills Revolution campaign, with a focus on small and medium-sized enterprises (SMEs) across England. Many tech start-ups are considering various strategies to overcome hiring challenges, such as targeting talent laid off by larger tech companies or offering equity in their companies to attract skilled staff.
Read more in the full newsletter here.
Join Chris Hodgson (Co-CEO and Founder, OBT Advisory) & Joel Berwitz (Managing Consultant, CNNECT) with host Rob Taylor (Business Development Director, Concept) as they share their PE strategy & exit experiences within the technology markets – the good, bad and the ugly.
Find it here.
Catch up with our latest blog posts:
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1yKeen to get feedback on the newsletter from the experts within it and make new business connections.
Head of Marketing - Digital Marketing, Brand Strategy, Lead Generation, Campaign Management
1yInsightful as always - interesting to read how AI is being used in the PE market and when sourcing deals.