Andrew Burke
Managing Director, Governance and Risk Advisory
London
Kroll Private Equity Risk Detection
Stay ahead of ESG, financial insecurity and cyber risks to a private equity's portfolio with real-time detection across the surface, deep and dark web.
Download Global Private Equity Risk IndexMitigate Deal Risk, Maximize Value Creation
Mitigate Deal Risk, Maximize Value Creation
Kroll Private Equity Risk Detect protects clients throughout the entire deal cycle by scanning digital chatter to spot emerging risks and mitigate business impacts in real time. Kroll uses AI/ML technologies continuously trained over 18 years by expert risk analysts to identify ESG, financial insecurity and cyber risks across the surface, deep and dark web, 24/7. That way, general partners can maximize value creation and manage value preservation in order to ensure future LP funding.
Read more about balancing value creation and preservation in our latest article: The Current Private Equity Dilemma here.
Is your firm at risk? Check the index.
Is your firm at risk? Check the index.
The Kroll Global Private Equity Risk Index ranks the 300 largest private equity firms in the world against five key risk pillars: Environmental Impacts, Social Issues, Governance Failures, Financial Insecurity and Cyber Attacks, analyzing risk signals within digital chatter across the surface, deep and dark web. The index is released quarterly.
Key findings include:
- Digital chatter about a risk event impacting a private equity firm can go undetected, on average, for a period of six months before escalating into a crisis.
- Governance failures pose a growing risk to private equity firms, resulting from a high frequency of perceived poorly managed restructuring and redundancy events.
- Global risk events have heightened private equity firm exposure overall, increasing digital chatter relating to climate change, social unrest and monetary insecurity.
Digital Chatter: An Essential Source of Risk Detection
As the term implies, digital chatter is the summation of conversations happening online that take place across the surface, deep and dark web. It includes open or indexed and closed or dark social media channels as well as forums and messaging apps. Today, risks to private equity emerge via digital chatter faster than ever before, making it an essential source of risk detection for due diligence and ongoing value protection against:
Environmental Impacts
Social Impacts
Governance Failures
Cyber Attacks
Financial Insecurity
Effective Risk Detection Requires AI + Human Intelligence
Effective Risk Detection Requires AI + Human Intelligence
For nearly two decades Kroll has combined AI/ML technology able to analyze over a billion items per week with Human Intelligence able to continuously label those items and interpret their risk signals on behalf of our clients. This enables Kroll to stay ahead of who, where and what is talked about online, putting digital chatter into contextual, executive-ready actionable risk intelligence and delivering it to our clients, so they are always first to know and first to act.
Total Deal Cycle Protection
Kroll offers risk detection throughout the five stages of a private equity firm’s funding cycle, providing real-time alerts and actionable risk intelligence to general partners, so they’re always first to know and first to act:
Deal Prospecting
Prospect Sector Scan
Kroll offers early risk scanning across five key risk pillars comprising financial insecurity, cyber attacks, social impacts, governance failures and environmental impacts. This is a one-off Prospect Sector Scan delivered on demand and can cover a set of prospects and comparables within a common sector.
Pre-deal Review
Key Risk Single Company Scan
Once a prospective investment has been identified, Kroll performs a deeper dive across the five key risk pillars to deliver a Digital Footprint Report identifying issues that might inform an initial go-no-go decision. This Key Risk Single Company Scan saves deal-costs when discovered before the fuller DD process.
Deal Due Diligence
Deep Single Company Due Diligence Scan
Kroll then performs buy-side a Deep Single Company Due Diligence Scan covering brand reputation risk, C-Suite risks, brand impersonation activity, consumer sentiment (where relevant), compliance issues and analyst comments. The resulting Digital Footprint Report also includes benchmarking against sector comparables.
Post-deal Management
Fund, Portfolio, Third-party Supplier Risk Detection
Post investment, Kroll protects fund value by delivering a set of ongoing detection solutions at the firm, fund, portfolio and supplier level:
- Fund Risk Detection
Across five key risk pillars - Portfolio Risk Detection
Working directly with the asset - Third-party Risk Detection
Across five key risk pillars
Disposal Due Diligence
Deep Single Company Due Diligence Scan
At exit, Kroll delivers a sell-side Deep Single Company Due Diligence Scan reporting comprehensive details of all historic and existing reputational, financial and operational risks. Increasingly buy-side firms are turning to open-source digital chatter to identify latent risks and Kroll allows the asset owner to prepare early for that additional diligence step.
Real-time, 24/7 protection in 50+ languages
Kroll protects all aspects of a private equity firm’s global activities, including the firm’s operations, fund portfolio, portfolio assets and the portfolio’s third-party suppliers. This means real-time, 24/7 protection in 50+ languages for entities associated with the firm, including its reputation, its assets and especially its executives.
Protecting a PE firm’s operations
Real-time that identifies intelligence reputational, financial or operational risks to the PE firm and its executives.
Protecting a fund’s portfolio
Real-time intelligence on the emerging business risks that could negatively impact individual assets and/or the portfolio.
Protecting portfolio assets directly
Real-time intelligence on the business risks posed to portfolio companies that could cause reputational, financial, operational or physical harm.
Protecting portfolio supply chains
Supplier risks are benchmarked against an average supplier profile for its sector to allow continual assessment of an asset’s overall supplier risk measured against industry norms.
Always First to Know, Always First to Act
Always First to Know, Always First to Act
Kroll is a trusted partner to 21 of the 25 largest private equity firms in the PEI 300. Its risk detection expertise is supported by a global network of experienced risk advisors, including 750 risk analysts specializing in signals intelligence, linguistics, psychology, compliance and regulation. With Kroll Private Equity Risk Detect, general partners are always first to know and first to act.
Valuation
Valuation of businesses, assets and alternative investments for financial reporting, tax and other purposes.
Cyber Risk
Incident response, digital forensics, breach notification, managed detection services, penetration testing, cyber assessments and advisory.
Compliance and Regulation
End-to-end governance, advisory and monitorship solutions to detect, mitigate and remediate security, legal, compliance and regulatory risk.
Corporate Finance and Restructuring
M&A advisory, restructuring and insolvency, debt advisory, strategic alternatives, transaction diligence and independent financial opinions.
Investigations and Disputes
World-wide expert services and tech-enabled advisory through all stages of diligence, forensic investigation, litigation, disputes and testimony.
Digital Technology Solutions
Enriching our professional services, our integrated software platform helps clients discover, quantify and manage risk in the corporate and private capital market ecosystem.
Business Services
Expert provider of complex administrative solutions for capital events globally. Our services include claims and noticing administration, debt restructuring and liability management services, agency and trustee services and more.
Environmental, Social and Governance
Advisory and technology solutions, including policies and procedures, screening and due diligence, disclosures and reporting and investigations, value creation, and monitoring.
Talk to a Kroll Expert
Kroll offers private equity firms risk detection for deal prospecting, pre-deal review, deal due diligence, post-deal management and disposal due diligence. Talk to a Kroll expert today.
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