March 2022

LBO & VC trends: AI in private equity

Value-adding use cases emerge from the adaption of advanced tools and techniques like AI throughout the investment lifecycle. From establishing a narrative about the presented data and charts within the due diligence process, to improving operations portfolio-wide or supporting the exit process. However, there is a lot of foundational work that needs to be done when it comes to data management. A good deal of private equity firms still rely on data supplied by target organisations and their portfolio companies. Also, data metrics are rarely consistent portfolio-wide. The lack of standardised data collection at scale is a major blocker here, preventing to provide clarity on the strategic plan and notify any differences in the execution. And that’s where the help of data cleaning tools come into place to assist in that foundational process. Let’s face it: the world changed to a place where data is dominant. Those who fail to leverage its power may be left behind.