Private equity continues to expand at a rapid rate, especially after the COVID-19 outbreak. In the aftermath, investment managing firms have to find new ways to manage the influx of data related to investments that are upcoming. A virtual dataroom („VDR“) can be used to optimize and speed up the due diligence process. Specifically, a VDR can be utilized to help PE firms perform a greater analysis and evaluation of the market position as well as growth opportunities, cash flows and track records of prospective investment targets.

Utilizing a VDR to carry out the initial stage of due diligence can assist investment managing teams close more lucrative deals in a shorter period. It can make a substantial impact on the bottom line. There are certain features to take into consideration when choosing a VDR as part of due diligence on private equity.

The VDR must provide a flexible and secure online platform to conduct due diligence on investment opportunities. It should allow users the ability to upload, organize and share documents using any device with Internet access. A complete due diligence workflow should also be provided. This should include Q&A management tools, granular access control for the folders and files, drag and drop upload capabilities for files, and version control.

Finally, a comprehensive analytics suite should be available to give insight into process’s progress. This should include real-time reports on document downloads as well as user activity and Q&A engagement.