The Digital Transformation of Private Equity

Weaver partners Morgan Page and Trey Hunt recently answered questions on the impact digital transformation and AI are having on private equity in PitchBook’s Q3 2024 U.S. Private Equity Breakdown.

Private equity has traditionally relied on personal networks, hard data and analytical models. How is this landscape changing with the advent of AI and the resulting digital transformation?

Sourcing deals through relationships and networks will always be a difficult space for AI to enter beyond the role of a personal assistant. However, once that prospect is identified, we have seen over the past decade a fundamental shift in how businesses operate, which provides digital opportunities. That shift has led to the majority of operations moving into a digital ecosystem, creating valuable opportunities to accelerate the identification, evaluation, and pursuit of prospect portfolio companies by leveraging new technologies and AI. For example, it has historically been necessary to manually pull and transcribe bank statements, trial balances, and tax statements into models for each prospect evaluation.

Click here to check out the full report

© 2024