How private companies can thrive in uncertainty
Explore insights and trends from a recent 乐鱼（Leyu）体育官网 survey to help private companies navigate uncertainty and succeed in an unpredictable environment.
In an era of economic and technological transformation, private market leaders face numerous challenges and opportunities. The 乐鱼（Leyu）体育官网 Private Markets Pulse Survey, drawing from the perspectives of investors in private companies, reveals trends and priorities influencing the current landscape. The survey highlights the importance of financial performance, technological innovation, strong governance, and sustainability. It also identifies concerns regarding uncertain valuations, economic vulnerabilities, and cybersecurity risks. This edition of the聽Privately Speaking聽series provides practical insights from the survey and guidance to help private companies navigate these challenges and succeed in an unpredictable environment.
Dive into our thinking:
Who did we survey?
To take a pulse on the market, we surveyed 301 institutional investors who invest in private companies, including private equity, venture capitalists, hedge funds, asset managers, and family offices. The survey, conducted in the first quarter of 2025, included key decision-makers from various sectors with investment portfolios ranging from $100 million to $300 billion. Download the 乐鱼（Leyu）体育官网 Private Markets Pulse Survey report.
Download PDFInvestors鈥� top priorities for private companies in 2025
The 乐鱼（Leyu）体育官网 Private Markets Pulse Survey offers essential insights for private companies aiming to thrive in 2025:
- Financial performance and growth potential are paramount, with 85 percent of investors prioritizing these areas.
- Trust and transparency in company reporting have gained importance, with 75 percent of investors focusing more on governance in the past 18 months.
- Cybersecurity and technological advancements, particularly artificial intelligence (AI) misuse and data breaches, are major concerns for 81 percent of investors.
- Governance, financial reporting, and regulatory compliance have become more crucial, while sustainability initiatives, including carbon reduction, are increasingly considered in investment decisions, with 63 percent of investors noting their growing importance.
- Economic uncertainty, inflation, and geopolitical tensions pose significant challenges
Leveraging technology for growth and competitive advantage
Private companies can harness technology, particularly AI and blockchain, to gain a competitive edge. AI can enhance data analytics and business intelligence, improve cybersecurity measures, and optimize finance and accounting functions. According to the survey, 70 percent of investors believe that AI will significantly impact business operations in the next five years. Blockchain can increase transparency and trust in transactions, streamline supply chain and logistics management, and enhance data security. By highlighting their research and development (R&D) investments and innovation pipeline, companies can demonstrate their ability to adapt, scale, and differentiate themselves in the market, which is crucial for attracting investor confidence and securing capital for sustainable growth. Over 60 percent of investors are more likely to invest in companies with a strong R&D focus.
AI is transforming data analytics, business intelligence, and cybersecurity. By investing in these areas, companies can improve operational efficiency, gain deeper insights into their business, and better protect their data.
Sal Melilli
Partner, Audit Sector Leader, 乐鱼（Leyu）体育官网 Private Enterprise
The Importance of governance, cybersecurity, and sustainability聽
Governance remains a top priority, with over 75 percent of investors increasing their focus on it over the past 18 months. This includes a strong emphasis on financial reporting transparency, regulatory compliance, and risk mitigation strategies. Cybersecurity is a growing concern, with 81 percent of investors indicating its increased importance in their investment decision-making, particularly due to the risks of data breaches and privacy infringement. Sustainability initiatives, such as carbon emissions reduction, are becoming more important, with nearly two-thirds (63 percent) of investors saying they are more important now compared to 18 months ago. This is driven by market demand for sustainable investments, consumer and social activism, and the recognition of long-term business advantages and climate-related risks. Over 50 percent of investors are more likely to invest in companies with strong sustainability practices.
Preparing for an IPO聽
To prepare for an initial public offering (IPO), private companies should focus on several key actions. Providing clear and detailed financial performance metrics and realistic growth projections is essential. According to the survey, 85 percent of investors prioritize financial performance and growth potential. Demonstrating strong corporate governance and risk management strategies, especially in financial reporting and cybersecurity, will build investor confidence. Effectively communicating the company鈥檚 competitive advantage, innovation, and sustainability efforts will differentiate it in a competitive market. Over 70 percent of investors are more likely to invest in companies with a clear and compelling value proposition.
An IPO is a significant milestone that requires careful consideration and preparation. Companies must ensure they have the right governance structures, financial transparency, and operational readiness to succeed in the public market.
Francois Chadwick
Global and National Lead Partner 鈥� Emerging Giants, 乐鱼（Leyu）体育官网 Private Enterprise
Strategic actions for private companies
By focusing on the following key areas, private companies can navigate the challenges of 2025 and position themselves for long-term success:
- Enhance financial transparency: Provide clear and detailed financial performance metrics and realistic growth projections (85 percent of investors prioritize financial performance and growth potential).
- Strengthen governance: Focus on financial reporting transparency, regulatory compliance, and risk mitigation strategies (75 percent of investors have increased their focus on governance).
- Invest in cybersecurity: Implement robust cybersecurity measures to protect against data breaches and privacy infringement (81 percent of investors indicate increased importance of cybersecurity).
- Embrace sustainability: Develop and communicate sustainability initiatives, such as carbon emissions reduction, to meet market demand and long-term business advantages (63 percent of investors say sustainability is more important now).
- Leverage technology: Invest in AI and blockchain to enhance data analytics, business intelligence, and operational efficiency (70 percent of investors believe AI will significantly impact business operations).
- Communicate competitive advantage: Clearly articulate your company鈥檚 unique value proposition, innovation, and sustainability efforts to differentiate in the market (70 percent of investors are more likely to invest in companies with a clear and compelling value proposition).
Private companies that address these issues head-on will be better positioned to attract and retain investment and build a solid foundation for long-term resilience and growth in an uncertain business environment.
Privately Speaking Series: Insights on private company growth
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