Private Equity in the age of AI
The emergence of data-driven private equity firms shows the transformative effect AI is having on the industry. Primary targets are portfolio enrichment, risk management and investment research, where the advanced predictive and analytical capabilities of machine learning models can be the factor that unlocks profitable decision-making and gives investors an edge. See how ADSP is helping private equity firms to reap the rewards of embedded AI.
How can we combine personal opinion with AI in private equity?
When the stakes are high, human ingenuity and experience combined with impartial, fact-driven insights of AI win you the game. Data science and AI can help you to narrow down the field of investment opportunities to a few dozen, rather than thousands. Moreover, AI can help you identify cross-sell opportunities between portfolio companies at scale and give recommended actions to maximise incremental revenue. AI and human intuition are not incompatible - together they are driving decisions at the world's most successful PE companies.
Founding Partner, ADSP
91% of private equity firms believe AI will disrupt their sector by 2024
High value AI projects for Private Equity
We use AI to support deal origination, ensuring a healthy portfolio that creates value in the long-term. We train machine learning models on financial information, website content, customer reviews and social media posts to surface the handful companies you need to speak to, from amongst tens of thousands of possibilities.
We build AI-driven products that directly create value within each business, finding opportunities for alignment across the portfolio. This includes recommendation engines, supply chain monitoring platforms and price optimisation models that support key strategic decisions. We using state-of-the art machine learning methods deployed on cutting-edge technology.
Making a final investment decision is a complex, multivariate problem that needs to be backed by real-world data. We analyse historical records of candidate portfolio companies and build bespoke mathematical models that you can interact with using a scenario simulator in order to test growth plans and perform robust due diligence.
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