Private equity operations: Rising expectations, growing complexity and the shift toward strategic partnership
Private equity firms face growing regulatory pressure, higher investor expectations, and faster reporting deadlines. At the same time, topics such as ESG and AI are becoming impossible to ignore.
We spoke with Ryan Goodbrand, Head of Private Equity at ATOZ Services UK, about the trends reshaping the industry, the growing role of operational partners and why human judgement still matters – Perhaps more than ever.
How are private equity firms’ expectations of service providers evolving?
One of the biggest changes in private equity is the move from transactional relationships to long-term partnerships. In the past, service providers were mainly expected to deliver specific tasks such as NAV reports or tax returns. Today, firms expect much more.
The expectation is no longer just to deliver a service, but to anticipate issues and support the client strategically.
Clients expect their service providers to be genuine operating partners and look for providers who truly understand their structures, reporting obligations and investor expectations. There is also increasing pressure from Limited Partners, who expect faster reporting and greater transparency.
Some reporting deadlines have already moved from 45 days to 30 days. That means providers need strong processes, deep expertise, and the ability to work across multiple jurisdictions.
What major trends are you currently seeing in the market?
One of the biggest shifts in private markets today is how selective investors have become. Firms with weaker performance are finding it increasingly difficult to raise capital, while managers capable of consistently creating value continue attracting investor interest.
Some funds with weaker portfolios and lower distribution levels risk becoming what the industry calls “zombie funds” – Funds that struggle to attract new investors or successfully exit investments.
Another major trend is the growing democratisation of private equity. Private markets were traditionally reserved for institutional investors such as pension funds, sovereign wealth funds, and insurance companies. Today, retail investors are gaining greater access through structures such as Venture Capital Trusts and Enterprise Investment Schemes.
The rise of evergreen funds is also reshaping access to private markets. Unlike traditional funds that open for a limited fundraising period before closing to new investors, evergreen funds remain open continuously, allowing investors to participate over longer periods. This model is making private market investing more flexible and accessible, while driving growing participation in private capital.
Another growing topic is continuation funds. How do you see this trend evolving?
Continuation funds have evolved from being a temporary solution into a core strategic tool. In the past, continuation funds were mostly used when firms struggled to exit an investment before the end of a fund’s lifecycle.
Today, they are increasingly being used for successful companies that managers want to continue holding for longer. Instead of selling a high-performing asset too early, firms can transfer it into a new continuation fund, allowing existing investors to realise gains while still maintaining exposure to the company’s future growth.
These structures can also create new co-investment opportunities for investors and management teams who want to remain involved in strong-performing assets. What was once considered an exceptional solution has now become a normal part of the private equity landscape.
Can AI replace human investment judgment in private equity?
Private equity still relies heavily on human judgement. AI can support investment teams by automating calculations, analysing data, and improving reporting processes. However, investment decisions still rely heavily on people, experience, and instinct. Intuition and experience remain essential components of investment decisions.
Sometimes you simply believe in an entrepreneur or in a vision. AI will continue supporting the industry, but the human element remains central to decision-making. Firms who use AI to free their staff from administrative burden, so they can spend more time on actual investment decisions and portfolio relationships, will have a competitive advantage.
How are ESG (Environmental, Social and Governance) reporting and regulation reshaping the industry?
ESG reporting is becoming a bigger operational and regulatory priority. Private equity firms are now expected to monitor and report increasingly precise ESG metrics, from carbon emissions to governance and sustainability indicators. The pressure is also growing across multiple jurisdictions, with more reporting obligations and stricter regulatory expectations.
Many firms still rely heavily on internal compliance officers, which can create significant key man dependency as regulatory environments become more complex.
Firms can no longer treat ESG as a simple reporting exercise at year-end. The real challenge is building the right processes, data collection, and reporting structures early enough to make ESG monitoring part of day-to-day operations.
This is where integrated operational support, like the one we offer at ATOZ Services, becomes increasingly important for firms looking to strengthen governance, compliance, ESG and regulatory reporting across multiple jurisdictions.
What is one mistake companies often make when scaling under private equity ownership?
Many businesses underestimate how demanding private equity environments can become as they grow. One of the most important things for companies is to invest early in strong financial and operational infrastructure.
Companies that invest early in experienced finance teams, reporting systems and operational processes are often much better positioned to scale successfully. Understanding investor obligations and reporting requirements from the beginning is also essential, particularly as structures become more complex. These processes cannot become an afterthought once the business starts growing quickly.
One of the most important things for companies is to invest early in strong financial and operational infrastructure. Understanding investor obligations and reporting requirements from the beginning is also essential, particularly as structures become more complex. These processes cannot become an afterthought once the business starts growing quickly.
