The private equity industry is now an asset class that counts more than 7,500 active firms globally, with an ecosystem of banks and intermediaries alongside it. In such a crowded space, investors can no longer rely on an “information advantage” to acquire assets outside of a competitive auction or target industries primed to benefit from long-term trends. The new challenge is to enable a persistent and unique investor advantage based on a data-powered, “inside-out” view of a company’s operating drivers.
Two Six Capital’s data-powered analytics platform, which includes RStudio’s professional integrated development environment RStudio Server Pro, equips investors with differentiated insights to endorse or disprove their investment theses and inform their growth and resource allocation decisions. It was developed specifically for due diligence and value creation and engineered to ingest raw data at scale, while rapidly generating analytics under tight timeframes. The raw data from companies’ CRM, PoS, ERP systems, and other sources are ingested into the firm’s in-house ETL, which is hosted over a virtual private cloud. The data then moves to databases where it is validated, cleansed and manipulated before machine learning and statistical-modeling applications produce insights through hard-copy deliverables or in real-time over dynamic dashboards enabled by RStudio’s open source web application framework Shiny.
RStudio open source and professional products allow Two Six Capital data scientists to slice and dice billions of rows data on the fly, eliminate manual processes, explore unseen business drivers, and communicate findings effectively to colleagues, co-investors, and business partners in a format they can easily understand and, then, communicate to other stakeholders.
By enabling Two Six Capital to help PE investors enhance their ROI through differentiated insights and clarity around decision making, RStudio has produced a material ROI for the firm. Two Six Capital data scientists can now focus on higher value initiatives and take on more projects; data quality is enhanced; and findings are effectively conveyed that can inspire change and encourage action across the firm and its co-investors and business partners.
RStudio provides open source and enterprise-ready professional software for data science teams using R and Python.