Private equity has long been a catalyst for business and economic growth, from Colonial times (the Massachusetts Bay Company) to the first official modern private equity / venture capital firms founded right after the second World War. (American Research and Development Corporation and J.H. Whitney & Company). Today, the capacity of private equity firms to infuse capital, strategic direction, and operational expertise into their portfolio companies is consistently increasing.

A recent report released by the American Investment Council (AIC) and Ernst & Young (EY) shows that, in 2024, “private equity directly employed 13.3 million people,” contributing $2 trillion to the U.S. gross domestic product (GDP). Drew Maloney, the President and CEO of the AIC, says, “The numbers in this report tell a clear story: Private equity is an engine of opportunity in America. We are invested in the success of communities across the country….[and we’re] making a real difference in people’s lives.”

Working as this “engine of opportunity,” private equity firms empower their portfolio companies to scale faster, operate more efficiently, and create lasting value. Increasingly, that value creation relies on one essential lever: technology.

In today’s hyper-competitive environment, operational optimization, real-time visibility, and confident agility are imperatives. That’s why modern Enterprise Resource Planning (ERP) systems—particularly cloud-native solutions—have become foundational to business success. They enable organizations to move beyond fragmented spreadsheets, outdated on-premises software, and siloed information to unlock a single source of companywide truth. This empowers teams to make faster, data-driven, growth-enhancing decisions.

Choosing the right ERP solution is critical for any company. Still, because private equity firms tend to gravitate toward implementing the same system at all the companies in their portfolios, the decision becomes even more important. An ERP solution is the central nervous system of a business, and how well it molds to that business’s operations will determine whether it supports or hinders success and growth. Legacy business management systems are rigid, and they often force organizations to change their fundamental processes to fit that rigid structure. Private equity firms would benefit by going with a single, flexible solution that will suit all the disparate businesses they own—disparate businesses with individualized processes that may break under the weight of rigid technology. So, what’s the answer to this “one-size-fits-all” problem?

Private equity firms should look to modern, cloud-based solutions, like Acumatica, that are built with accessibility, flexibility, and user-friendly adaptability in mind.

Acumatica: The Modern ERP Platform for Private Equity Portfolios

Among the many ERP systems on the market today, Acumatica stands apart as the platform of choice for a growing number of private-equity-backed companies. Our cloud-native architecture enables rapid deployment and cost-effective scalability, while our open APIs and low-code/no-code configurability empower teams to extend the system’s functionality without advanced technical knowledge or costly redevelopment.

What makes Acumatica especially compelling for private equity are the measurable and proven outcomes achieved in the first 12–24 months post-investment—through operational efficiency, real-time KPI visibility, and reduced IT overhead. With native support for multiple entities, multicurrency environments, and industry-specific requirements, Acumatica aligns perfectly with the private equity mandate: create enterprise value quickly, efficiently, and repeatably across the portfolio.

Our cloud ERP is the strategic engine for portfolio optimization with a future proof AI-platform to accelerate portfolio value, drive EBITDA growth and ensure they are exit ready is a value proposition that stands alone in the market as the premier choice for M&A investors.

Acumatica’s Customer Bill of Rights also aligns with the private equity mandate. It outlines the fundamental promises that will be fulfilled for every business that implements Acumatica: unlimited-user licensing, an adaptable system that can be customized with little to no coding, an open platform that seamlessly integrates with other mission-critical applications, a secure and reliable system, flexible deployment options, predictable and transparent pricing, free training and access to the vibrant Acumatica Community, a customer-centric approach to all business operations, and data ownership that stays with the customer—always.

So, as you assess value creation levers for your next investment—or seek to optimize an existing asset—consider how Acumatica can help you achieve the growth you and your portfolio companies are seeking. Our platform is built to be a strategic asset, transforming operations, providing actionable, future-ready insights, and helping business leaders forge data-driven paths to continued success.

If you have any questions about how Acumatica could serve your private equity firm or businesses in your portfolio, reach out to our private equity experts.