Private Equity Outsourcing Services for PE Firms Global
Private equity outsourcing has evolved from a simple money-saving measure to a strategic tool for scaling, speed and differentiation. The more difficult fundraising, the longer deal cycles and the more stringent regulations are, the faster PE firms are discreetly turning to the global. Hybrid operating models that consist of in-house teams as well as offshore and nearshore partners with special expertise. The following is a data-driven examination of this situation.
Why Private Equity Outsourcing Matters?
The private markets are enormous and still expanding. In 2023, the total assets under management (AUM) of the global private markets reached approximately US$11.9 trillion. This was higher than US$10.9 trillion in 2022 and US$10 trillion in 2021. More than fifty percent of this total is made up of private equity. At the same time, global fundraising slowed down. The total amount of private capital raised decreased by 23.5%, from US$1.44 trillion in 2023 to US$1.10 trillion in 2024. This situation high AUM, low inflows create a lot of pressure on margins and forces the players to focus their operations on efficiency.
Why Private Equity Outsourcing Matters?
The deals have returned but the available resources are still not enough. Private equity (PE) has re-activated in 2025:
The value of PE deals in the third quarter of 2025 reached approximately US$310 billion, involving 156 transactions plus six “mega” deals exceeding US$10 billion each.
Buyout activity in the first quarter of 2025 was estimated at 4,828 deals, compared to 4,462 in the previous year, with total value increasing to US$495 billion from US$354 billion in Q1 2024.
Nevertheless, the majority of companies have not elevated their internal operational systems to the same degree as their external ones. Outsourcing is the key to enabling this to happen:
Monetary benefit: According to Harvard Business Review, by outsourcing, one can cut the costs of operations by as much as 30% to 20%. The data from EY implies that the usual savings are around 5 – 10%, with some functions and delivery models going even higher than 30%.
Workforce and time: The global expenditure on BPO (Business Process Outsourcing) was $280.6 billion in 2023. It is projected to grow at a compound annual growth rate (CAGR) of ~9.6% to reach $400 billion in 2030, with financial services as a key demand driver. This is a clear indication that firms are gradually transferring their non-core business functions outside.
Data & analytics outsourcing (core for PE)
Private equity outsourcing is relying more and more on data this is the case whether it is a matter of screening thousands of targets, analyzing portfolio KPIs or developing AI-powered deal-sourcing engines. The scalability of this external capability is indicated by the data analytics outsourcing market:
According to one recent estimate, the market will be worth US$18.8 billion in 2024. It will grow to US$265.1 billion by 2033, translating to a 34.2% CAGR (2025–2033).
Another source gives the figure of US$14.4 billion for 2024. It is predicted to rise to US$131.3 billion by 2033, at 25%+ CAGR.
Despite the differences in the methodologies, all major analysts are united in their predictions: outsourced analytics is growing at 25–35% per year, much faster than traditional IT outsourcing.
Key Trends in Private Equity Outsourcing
From tactical cost-cutting to strategic collaboration the private equity outsourcing relationships are increasingly becoming more strategic:
A report states that 81% of companies are already looking for their suppliers to act as strategic partners and 75% want to achieve transformational effects such as new business models and AI-based innovation not just cheap labor.
According to a report global private equity outsourcing survey, 80% of executives are going to keep or boost the amount of money spent on outsourcing, and 50% have already engaged outside vendors in certain front-office areas (sales, marketing, R&D).
Middle- and back-office outsourcing as a core pillar
Middle and back-office outsourcing as a core pillar Outsourcing of middle and back offices is mostly noticeable in Asia-Pacific. Hedge funds and private equity firms engage the services of specialized providers for trade support, reconciliations, performance reporting, and investor servicing. An analysis carried out in April 2025 claims that such outsourcing has become a “cornerstone strategy” for APAC managers. This allows them to scale while managing fee pressure and regulatory complexity. In Europe, banking supervisors state that almost all major institutions now depend on cloud-based outsourced services for key ICT functions. This is with the average cloud outsourcing expenditure increasing by 13.5% annually from 2023 to 2024. This trend of outsourced infrastructure and systems being the norm provides a direct benefit to PE firms that work with the same service providers as the banks.
AI-enabled outsourcing and “research-as-a-service”
One report points out that the users are asking for the suppliers to involve AI and automation in the process besides humans. Outsourcing of data analytics is piling up at an annual rate of 25-35% or more. The main reason is the demand for machine learning, natural language processing, and automated reporting.
Opportunity Areas Across the PE Value Chain
Private Equity Outsourcing has now become a phenomenon that impacts nearly every part of the investment lifecycle. The main opportunity areas are:
Fundraising and investor relations
Since global fundraising declined by 23.5% in 2024, LPs have become more selective; they require more data and transparency. Considering that private equity outsourcing usually brings about 5-30%+ cost reductions as compared to in-house development. Smaller and mid-market GPs can rely on strong institutional fundraising support without the need for large permanent teams to be created.
Deal origination and investment research
The increase in deal volumes (4,828 buyouts in Q1 2025) puts the sourcing of differentiated assets as the primary hurdle in the investment process. This is especially beneficial for GPs whose presence is widespread across different sectors and regions but have only a small number of internal staff.
Portfolio value creation
Operating partners increasingly expect data-rich dashboards and analytics, but many portfolio companies lack internal analytics muscle.
These capabilities draw heavily on the data analytics outsourcing ecosystem. And it is projected to grow 10–14x over the next decade.
Fund operations and compliance
As regulations tighten and LPs scrutinize operations, many PE firms outsource:
Fund accounting and reconciliation
Regulatory reporting (AIFMD, Form PF, Annex IV, ESG disclosures)
Performance and risk analytics
Cybersecurity and cloud infrastructure management
Given the 9%+ CAGR in financial back-office outsourcing overall, private equity outsourcing will likely grow at a similar or higher rate as funds scale.
Regional Insights
How private equity outsourcing plays a role for worldwide market:
Private Equity Outsourcing – Regional Insights
North America
North America, ruling over 40% of the worldwide market for data analytics outsourcing, is still the main PE activity center. Companies in the US and Canada adopt a layered approach. The global operation is managed by local providers, the nearshore center in Latin America is for bilingual analytics, and the hubs in India/Philippines are for back-office functions with big volume.
Europe & UK
European PE funds have normalized multi-vendor ecosystems as financial institutions aggressively shift toward outsourced ICT and cloud services. These operations typically bridge three zones: fund administration in Luxembourg or Ireland, research hubs in Central and Eastern Europe, and offshore finance teams in India.
Asia-Pacific
Outsourcing is now a “cornerstone strategy” for APAC firms seeking scalability. Global GPs generally run hybrid models, keeping investment leadership in hubs like Singapore or Sydney while offshoring research to India, Vietnam, or China. Notably, India’s local PE-VC market reached $29.7 billion in 2025, further strengthening the regional provider ecosystem.
Middle East & Africa
While African state-owned institutions now manage nearly $1 trillion in assets, Middle Eastern and African investors still rely heavily on third-party platforms in Europe and Asia. However, the landscape is shifting as new regional outsourcing nodes and research hubs emerge in Dubai, Riyadh, and Johannesburg.
Magistral’s Services for Private Equity Outsourcing
Fund Raising and Marketing
Tasks like sponsorship documents drafting such as private placement memoranda, pitch decks, and e-mail campaigns along with investor profiling. In addition, we manage CRM systems, and newsletter distribution as well as providing LP and GP lead databases.
Deal Origination
Magistral uses various systematic screening methods. This includes industry analysis and ESG scoring, to make it easier for investors to find the right target. We apply clear operational processes to manage the target pipelines and thus make deal origination more effective.
Due Diligence and Deal Execution
We perform detailed analyses of finance and operations, complete market research, and assess competition. Our experts prepare investment memorandums to assist decision-making. They also provide LBOs, DCFs, and many other financial models.
Portfolio Management
Magistral Consulting provides ESG compliance oversight; outsourced CFO services; as well as financial documentation services. Our team identifies acquisitions, formulates market entry strategies, and manages funds and accounting practices to improve portfolio performance.
About Magistral Consulting
Magistral Consulting has helped multiple funds and companies in outsourcing operations activities. It has service offerings for Private Equity, Venture Capital, Family Offices, Investment Banks, Asset Managers, Hedge Funds, Financial Consultants, Real Estate, REITs, RE funds, Corporates, and Portfolio companies. Its functional expertise is around Deal origination, Deal Execution, Due Diligence, Financial Modelling, Portfolio Management, and Equity Research
For setting up an appointment with a Magistral representative visit www.magistralconsulting.com/contact
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