A recent KPMG study reveals how private market investors are reshaping their strategies to stay ahead of technological advancements and emerging risks. Surveying over 300 private equity, asset management, venture capital, and family office investors across the U.S., the study highlights key shifts in investment priorities. Private market investors now focus on a balance between financial performance and scalability when evaluating opportunities. According to Tarek Ebeid, KPMG Private Leader, investors remain cautious about risks and are placing more value on comprehensive reporting and governance measures. “They remain cautious about risks, placing increasing value on comprehensive reporting and governance measures. Founders seeking funding should articulate their company's strengths, future potential and comprehensive risk management strategies with clarity and transparency.” said Tarek Ebeid. Furthermore, investors increasingly prioritize companies that innovate and embrace new technologies, as they expect AI to transform data analytics, business intelligence, cybersecurity, and finance.
As technology adoption accelerates, investors are also placing greater importance on cybersecurity and data reporting. The study shows that 81% of investors now weigh these factors heavily when making investment decisions. As businesses grow more reliant on digital infrastructure, robust cybersecurity practices are critical for mitigating potential threats and ensuring long-term stability. Additionally, Governance has increasingly become a primary focus for investors, alongside financial performance. While profits still matter, they now place greater value on strong governance, ethical practices, and transparent non-financial reporting. For CFOs, these changes signal the need to strengthen governance structures and embrace technological innovations. By prioritizing these areas, companies can drive sustainable growth, manage risks effectively, and build lasting trust with investors in today's fast-moving market.
