How Data Analytics and Machine Learning are Transforming Private Equity


All global known companies including Apple, Cisco, Google, Adobe, and more have been part of private equity deals at one point in time. If it weren’t for investors, US private equity firms, and their limited partners, these companies wouldn’t be here today as we know them. Let’s face it – the relationship among investors, founders, and private equity firms have been progressive for everyone involved. However, emerging technologies such as machine learning are disrupting this relationship. The traditional way to source deals Traditionally, the way to source investment deals is dependent on building connections and meeting potential clients face-to-face. Overall, sourcing deals depends on the firm’s ability to network effectively. After raising funds, firms use proprietary
deal flow to connect with lawyers, accountants, and executives in the
industry to find investment or buy out opportunities before other
firms. Joint deals (or
syndicates) are considered if the partner firm doesn’t have the funding to
enter a lucrative deal by themselves. Bigger the company, the more
connections it can find another company that is looking for …

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