Top tier alternative asset managers are already working with AI. It’s time for mid-market firms to join the trend. BeBeez supports its readers in this moment of epochal labour transformation
BeBeez Academy and Digitiamo (Lio Factory) will launch an innovative online course for practical use of artificial intelligence in private equity investments and the management of portfolio companies. Enrolment will be open between 1and 30 September, Monday and Tuesday.
Each of the online sessions on 2, 9, 16, and 23 October, Thursday, will last 2 hours and will be available for streaming.
Classes programme is already available to those who will fill form here. An early bird discount is also available.
At the end of 2023, 10% of private capital investors started to adopt AI-based solutions for activities such as scouting of opportunities, research, deal origination, contract management, and due diligence. By 2028, 25% of mid-market players may implement this kind of technology, Deloitte Insights previously said. The report also pointed out that the current adoption curves of recent technological progress let estimate that the percentage of investors in private markets using artificial intelligence for complex operations will increase by at least 30% over the next five to seven years while 40% of firms could also adopt such technology for more complex activities such as portfolio valuations.
Chris Sparenberg, the head of S&P Global operative system iLEVEL, said to the parent company’s blog that private capital expansion led to strong pressure on asset and portfolio managers to provide greater transparency and granularity for data. Traditional reporting sources (PDF, Excel sheets) are no longer sufficient, and the demand is now for analytical standards like those in public markets. The AI makes it possible to automate the manual processes of data collection, cleaning and analysis, increasing efficiency and accuracy. Sparenberg added that AI will also be instrumental in improving the data quality, identifying errors and enhancing procedures.
Bain & Co 1Q25 Global Private Equity Report quoted private investors managing assets worth 3.2 trillion in 3Q24 as saying that the majority of their portfolio companies was carrying on tests and development of generative AI while 20% of the firms was achieving concrete results. Top-tier players like Vista Equity Partners, Apollo Global Management, and Hg Capital pioneered the use of generative AI (see here a previous post by BeBeez).
London-listed Schroders Capital, a private markets player that has 99.3 billion US Dollars of aum, expanded its advanced AI tools and implemented a virtual investment committee agent for further strengthening the decision-making process (press release).
Schroders Capital data science team developed such a proprietary technology for supporting the Generative AI Investment Analyst (GAiiA) that launched in June 2024 (press release). The latter tool allows Schroders Capital to efficiently sift through large amounts of data, accelerate due diligence and generate first drafts of investment summaries. Since its introduction, GAiiA helped the private equity team for the generation of investment committee memoranda first drafts and for responding to specific requests related to target during the due diligence phase. GAiiA already assisted in more than 40 investment cases and Schroder’s primary and secondary markets teams use it for all types of private equity investments.
BeBeez and Digitiamo tailored a course for Italian and European mid-market investors that aim gain a competitive advantage with the implementation of the same technologies as those of global top-tier asset managers through the adoption of an operative roadmap with replicable models also compatible with portfolio companies.
Key contents of the course:
- Automated deal sourcing via semantic text screens, social big data and market signals
- Automated evaluations on multiples and performance forecasts of target companies
- Assistance tools for document due diligence and financial modelling
- AI driven operating models for the governance of portfolio companies
- Construction of predictive pipelines for exit and valuation benchmarks
Download here the Course Programme and sign up for early bird from 1 September, Monday
