TMT

Advanced technologies could help open up the asset class to more individual investors, but hurdles around standardisation and regulation remain.

Advances in artificial intelligence offer new use cases and productivity gains, opening up opportunities for late-stage companies, say Wellington Management’s Rob Mazzoni and Matt Witheiler.

From automation and artificial intelligence to blockchain, PE is beginning to embrace advanced technologies.

While applying artificial intelligence to PE investment processes isn’t easy, first movers and those with powerful systems can gain a competitive advantage, says Nils Rode at Schroders Capital.

Investment in change management is key to harnessing real value from artificial intelligence, say CVC Capital Partners’ Jean-Rémy Roussel and Andrea Peyracchia.

Private equity’s interventionist approach is accelerating AI adoption across portfolio companies, as GPs also explore applications in their own operations, say Bridget Walsh, Kenneth Woodruff and Prashant Garg at EY.

More GPs, LPs and portfolio companies are turning to advanced technologies, but some issues still need to be ironed out.

Generative AI has emboldened cybercriminals, making already common cyberattacks on firms cheaper to execute and more convincing.

As recent settlements, proposed rules and exam sweeps highlight the SEC’s focus on regulating AI tools, firms would do well to ensure they have robust AI processes in place.

LPs are exploring the use of advanced technologies such as AI to enhance workflows and aid investment decisions, but the human element remains key.