AI in secondaries
Artificial intelligence is rapidly becoming a cornerstone of the secondaries market, transforming how portfolios are analysed and priced. Predictive pricing models now allow investors to forecast transaction outcomes with greater accuracy, helping them make informed decisions about whether to sell, roll, or buy. Machine learning tools are enabling dynamic portfolio repositioning, tailoring strategies to specific liquidity objectives and market conditions.
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If we take a look at the market, the LP-led market...
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If we take a look at the market, the LP-led market is going to be over $100bn of volume this year.
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We need tools to be able to analyse and ultimately underwrite these assets within these diverse portfolios.
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AI is another tool in our kit, and if we break it into the sections, we have machine learning, we have simple quantitative techniques.
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We use all of these to be able to analyse and predict the go forward returns of the underlying assets.
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Now, AI is helping us to be a more efficient investment team. By being more efficient is leading us to be more effective.
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We’re able to stay active in transactions by analysing the entire market with our suite of AI investment models and then the transactions we like, we can bring in the team to actually perform the traditional fundamental equity analysis and combine with our AI models.
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It enables us to stay active for longer in many transactions.
This shift isn’t just about technology – it’s about building the right capabilities as opportunities grow as the market matures. Firms are investing in data science talent and advanced programming expertise to create proprietary analytics platforms. These platforms integrate valuation, risk modelling, and scenario planning.
As secondaries deal volume grows and transaction technology become more complex, AI-driven insights will become standard practice over the next several years.