Private equity looks to the CIO as value multiplier
Cache Merrill (Zibtek): "“The modern CIO in a private equity environment is no longer just a back-office role but a strategic partner capable of driving the business forward,” he says. “As technology continues to be a linchpin in achieving market differentiation and operational excellence."
Investors look to CIOs to drive revenue creation, cut costs, and research new deals, while setting digital transformation and AI strategies.
The CIO’s value in the rebounding private equity market appears to be increasing, as investors see IT as an enabler of new revenue and as a driver of cost efficiencies.
Several CIOs and other IT leaders in private equity (PE) environments say they see a trend toward the position being elevated, both with investors and at the portfolio companies they fund.
PE investors have begun to realize they can achieve better returns with strong and empowered CIOs at portfolio companies, says John Buccola, CTO of E78 Partners, a managed services provider focused on the private equity market.
The past practice of giving the CIO a few minutes at the end of a company board meeting is changing, with many board members of PE-backed companies now wanting more time with IT leadership, he says.
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