The AI Revolution in Private Equity: Diligence, Operations, & Value Creation | PE + AI
Manage episode 510050145 series 3613980
Artificial Intelligence (AI) is no longer a futuristic concept—it’s actively reshaping the landscape of Private Equity (PE) right now. In this can’t-miss episode of The Private Equity Experience, hosts Emily Sander, Ed Barton, and Rory Liebhart dive deep into how AI is creating immediate, tangible value in the PE ecosystem.
The discussion kicks off with a rapid-fire round of questions about trusting AI in our personal lives, but quickly moves to how AI is transforming core business functions.
In this episode, you will learn:
Operational Engineering with AI: Ed Barton shares the insight that AI is taking the ability to operationally engineer a business to another level. Learn why PE firms should hunt for "people-heavy" businesses run by "Luddites" where AI can be applied quickly for massive operational leverage and a faster jump in valuation.
Diligence and Cost Savings: Rory Liebhart shares his personal experience saving "tens of thousands of dollars" on professional services and legal fees by utilizing basic AI tools like ChatGPT.
The New PE Investment Thesis: Where are the smartest investments happening? The hosts break down the "picks and shovels" opportunities—investing in the infrastructure that supports AI's growth, such as data centers, power generation, and internet service providers, as a lower-risk investment strategy compared to direct AI companies.
The Future of Human Reliability: Ed offers a fascinating prediction that AI's reliability will soon surpass human instinct, transforming how businesses must adapt in the next decade.
Whether you are a PE investor, a portfolio company executive, or a founder considering a sale, this discussion provides actionable insights on how to leverage the AI revolution for maximum value creation.
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Who Are We?
Three insiders. One mic. All things private equity — explained. Hi 👋 We’re Ed, Rory, and Emily — a CEO, a CFO, and a Chief of Staff — here to demystify the world of private equity. Between us, we’ve sat in the founder’s chair, run PE‑backed companies, and worked on the deal side, so we know the wins, the pitfalls, and the jargon (and we’ll explain it).
Through the Private Equity Experience Podcast, our book On‑Ramp to Exit, and a library of free tools and templates, we share real‑world stories, practical strategies, and insider insights to help you navigate every stage of the PE journey — whether you’re leading a portfolio company, joining a deal team, considering PE, or just PE‑curious.
...Chapters
1. Rapid Fire Questions: AI in Everyday Life (00:00:00)
2. AI's Impact on Private Equity (00:01:53)
3. Operational Engineering with AI (00:03:59)
4. Investment Opportunities in AI (00:06:04)
5. AI in Accounting and Customer Service (00:10:55)
6. AI in Due Diligence and Search Processes (00:16:39)
7. AI's Role in Data Analysis (00:20:34)
8. Identifying AI Hallucinations (00:20:57)
9. AI's Impact on Legal and Business Costs (00:22:56)
10. AI and Private Equity Fee Structures (00:23:34)
11. AI in Private Equity Investment Strategies (00:25:08)
12. Future of AI in Private Equity (00:27:38)
22 episodes