How Private Equity Firms Are Creating Value with AI
Briefly

How Private Equity Firms Are Creating Value with AI
"Private equity firms are increasingly focusing on AI technologies to enhance the performance of their portfolio companies, aiming for quicker value realization."
"The industry's strategy is to purchase undervalued companies, improve their financials over five to seven years, and then sell for profit."
"Vikram Mahidhar, a leader in AI at Genpact, emphasizes the transformative potential of AI in elevating performance metrics for private equity investments."
"Thomas H. Davenport highlights the growing intersection between advanced analytics and private equity, providing insights into enriching decision-making through AI."
Private equity firms are focusing on leveraging AI technologies to improve the financial performance of their portfolio companies rapidly. Traditionally, these firms operate on a 'buy to sell' model, acquiring undervalued companies and enhancing their value over five to seven years before divesting. Industry leaders like Vikram Mahidhar from Genpact recognize AI's transformative potential to optimize performance, while experts such as Thomas H. Davenport emphasize the significance of analytics in driving decision-making processes, hinting at an evolving landscape in private equity investments fueled by advanced technologies.
Read at Harvard Business Review
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