Private Equity Insights: PE Challenges with ESG, Future of Work, and Cybersecurity

As we head into the second half of 2022, it’s a volatile business climate in private equity. Inflation is on the rise, fueled by strong consumer demand. The labor market has stayed hot and unemployment levels low, with the gap between job openings and available candidates in the millions. PE deal activity and exits have slowed but they remain above longer-term trends. That said, public listings and IPO activity have slowed dramatically. And amid these challenges, markets and stakeholders continue to seek deeper data and insights regarding ESG practices and policies.

In our latest edition of Private Equity Insights, we offer informative perspectives and guidance on challenges such as ESG, talent management and the future of work, and cybersecurity that can help guide PE leaders and their portfolio companies in navigating today’s challenging times.

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Topics Important to Private Equity

Get your Portfolio Ready for ESG Reporting 

My colleague Sean Gleeson and I recently spoke to Buyouts Insider on the topic of sustainability reporting. We discuss the challenges PE firms face for not only their own internal reporting but also that of their portfolio companies.

Read the article

Additional Insights From Protiviti

ESG

Board Perspectives Podcast Series 

In this podcast series, we explore numerous challenges and areas of interest for boards of directors around the world. From ESG matters to fulfilling the board’s vital risk oversight mandate – topics of great interest to PE leaders and stakeholders – Board Perspectives provides practical insights and guidance for new and experienced board members alike. Episodes feature informative discussions with leaders and experts from Protiviti and other highly regarded organizations.

3 Foundational Steps to Help CFOs and Their Companies Get the Upper Hand on Managing ESG Data

ESG is a top-of-mind issue in the PE world. Most public and PE-owned companies have made strides to provide meaningful ESG reporting to their stakeholders. However, even these leaders are concerned about complying with new proposed regulations from the SEC, which would require public companies to disclose extensive climate-related information in their SEC filings. In this article, we explain how much of the challenge comes down to effective data management and data governance. 

Future of Work

Does Company Culture Stay the Same After an IPO? 

PE firms are more concerned than ever with culture in their portfolio companies. Do employees feel empowered and engaged? Are we in danger of losing our top people due to poor workplace culture? Even as companies strive to maintain their heritage as they grow, we believe there are eight behaviors that must evolve as organizations begin to operate under a larger microscope.

Cybersecurity

Cybersecurity And Data Privacy: 7 Challenges For CFOs To Address

From growing ransomware threats to data protection and compliance with privacy standards, PE firms and their portfolio companies have a lot of ground to cover to ensure a strong cybersecurity posture. Our recent article on Forbes.com offers guidance to address 7 cybersecurity-related challenges. 

Technology Risks and Controls: What You Need to Know

A fundamental area that any growing company must address is internal controls within the IT environment. We find this to be a common challenge within a PE firm’s portfolio companies as these organizations build out their IT infrastructure. This paper offers practical insights into technology risks and controls, from what’s required and the importance of director and executive oversight, to distinguishing between IT general and application controls.

Leadership

Rob is a Managing Director in the Business Performance Improvement Solution in Protiviti’s Metro New York Region. Rob leads Protiviti’s Global Private Equity Practice and has been providing professional consulting services to corporate clients and their owners for more ...
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