Private Equity Findings, Issue 20 | Coller Capital

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25 July 2024 Publication
Research & Insights

Private Equity Findings, Issue 20

Topics
Foreword By the numbers
Retrospective: A bigger picture
Overview Understanding LPs performanceThe role of academic research in PEThe most influential pieces of academic researchThe affect of the 2006-07 credit bubble Resilience of the PE industryThe the growth of private debt fundsAreas of current researchAreas of research opportunities?
What’s at stake?
Roundtable: Will AI transform private equity?
Overview PE embracing AI technologiesAI origination for VC investmentsThe limitations of AI & lack of dataAI in decision makingUsing AI to predict future outcomesDo LPs really need AI to process qualitative information?AI techniques to predict company director performanceDo large networks and directorships mean poor performance?What aspects of PE are ripe for AI disruption?AI for PE: hype vs. reality
Time for a new model?
Overview Time for a new model: The research viewpointTime for a new model: The investor viewpoint
The side letter arms race
AI for PE: hype vs. reality
Foreword By the numbers
Retrospective: A bigger picture
Understanding LPs performance The role of academic research in PE The most influential pieces of academic research The affect of the 2006-07 credit bubble Resilience of the PE industry The the growth of private debt funds Areas of current research Areas of research opportunities?
What’s at stake?
Roundtable: Will AI transform private equity?
PE embracing AI technologies AI origination for VC investments The limitations of AI & lack of data AI in decision making Using AI to predict future outcomes Do LPs really need AI to process qualitative information? AI techniques to predict company director performance Do large networks and directorships mean poor performance? What aspects of PE are ripe for AI disruption? AI for PE: hype vs. reality
Time for a new model?
Time for a new model: The research viewpoint Time for a new model: The investor viewpoint
The side letter arms race
Roundtable: Will AI transform private equity?
As things stand today, how much of the noise around AI and PE is hype and how much is genuinely transformative?

 

“For now, AI in the context of PE is mostly hype, simply because it is not yet being widely used. However, it will not be long before ChatGPT is reading limited partnership agreements and PPMs and providing feedback to decision-makers.”

Ludovic Phalippou


 

“While it is challenging to distinguish the AI hype from reality, the trend towards embracing data technologies is undeniable. The exact boundaries of what will be automated or not will ultimately depend on advancements in algorithm capabilities and the industry’s willingness to adapt and integrate these technologies into its workflows.”
Maxime Bonelli

 

“I think AI will offer incremental improvements to certain functions, but I am yet to be convinced that it will be transformative. It will take tasks that have historically been performed by humans and do them more rapidly and it will take tasks that have historically proved very challenging or expensive for in-house teams and make them achievable and cost-effective, removing the need for expensive outsourcing. In that sense it could prove extremely helpful, but I don’t view AI as a game-changer.”
Merrick McKay


“At a basic level, investors should be using AI as an evolution of technology and automation to enhance their business efficiency, so I don’t think it’s hype. I think as an industry, we should be exploring how to use AI as a tool for value creation alongside more traditional analysis.”
Joshua Lowe

“I don’t see AI as hype, either. It is transformative. But I don’t think it will be transformative in supporting investment decisions. Instead, it will help transform the businesses we invest in. Those that adopt it wisely will absolutely outperform their competitors. This is a very significant moment in time. Like the advent of the web, we are at an inflexion point and there will be winners and losers, for sure. But I don’t think it will make better investors.”
Anne Glover


 

“I completely agree: AI has reached an inflexion point and that has created a lot of potential for disruption. This technology is now ripe for actors to make bold changes. I do expect a certain amount of resistance from incumbents who fear the redistribution of power, and this may slow the pace of adoption. Ultimately, however, AI will prove transformative, and I don’t think the PE world will be left untouched.”
Léa Stern

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