The Pressure on Private Equity Due Diligence
Private equity firms today face growing pressure to move faster, de-risk decisions, and deliver stronger returns. When examining emerging markets, the challenge is even greater as these markets have shown limited transparency, fragmented data, and constantly shifting regulations, which have rendered traditional due diligence insufficient.
Therefore, the reality is clear: reports and databases can’t always capture the nuance of how these markets actually work. And in order to have successful deals, firms have been turning to a new advantage: expert networks that support private equity due diligence, such as Infoquest.
Why Reports and Databases Aren’t Enough
- Reports age quickly: Market dynamics often change before the report even hits your desk.
- Databases lack context: Data shows numbers, but not the cultural, operational, or regulatory realities behind them.
- Local opacity: Critical insights in Asia, Africa, and Latin America often exist only in the minds of insiders, distributors, regulators, and operators, and not in public sources.
Therefore, private equity would be gambling with this partial visibility.
Expert Networks: The New Due Diligence Toolkit
Expert networks connect PE firms directly with veterans, operators, regulators, and ex-executives who live in the market every day. And instead of weeks-long wait times, these answers arrive in hours from vetted experts by the network.
For private equity due diligence, this means:
- Sharper market validation: Testing assumptions with on-the-ground operators.
- Regulatory clarity: Understanding what’s enforced, not just written.
- Competitive benchmarking: Gaining inside knowledge on pricing, growth levers, and risks.
Expert networks give investors the trusted expertise that static data of traditional expert networks and public sources miss.
Expert Networks: Real-World Applications
- Renewables in India: Validating solar project economics with ex-utility leaders.
- Consumer goods in Indonesia: Sizing the market through distributors who understand informal retail.
- Fintech in Southeast Asia: Gaining compliance clarity from former regulators.
- Healthcare in China: Understanding patient behavior via ex-clinic managers.
Each case highlights how expert insights turn blind spots into deal certainty.
Beyond the Deal: Portfolio Value Creation
How expert networks can help post-deal diligence
Expert networks don’t stop at pre-deal diligence. They drive post-investment value creation too:
- Opening new sales channels.
- Benchmarking compensation to retain top talent.
- Exploring growth adjacencies (e.g., logistics firms moving into last-mile delivery).
The firms that embed expert networks across the deal lifecycle deliver more resilient exits.
Infoquest POV: Redefining Access for PE
At Infoquest, we see private equity shifting from ad hoc expert calls to systematic integration of expert networks. Due to what investors demand the most, which are:
- Speed: Expert shortlists in under two hours.
- Coverage: Depth across Asia and the Middle East, including opaque markets.
- Compliance: Fully vetted processes aligned with regional data privacy laws.
At Infoquest, our AI-powered and custom sourcing-first approach in our research model ensures investors move with clarity, speed, and conviction.
Closing Thought
The strongest deals are built on trusted insights. For private equity firms, expert networks in due diligence are no longer optional but rather essential. Those who leverage them will not only close smarter deals but also lead the next wave of growth in emerging markets.
Looking for a trusted partner to support in your due diligence projects? Send us your request here.