Santosh Tiwari’s Post

Great insights on how AI companies are witnessing so much interest from PE funds and what should be the key considerations for these funds while investing in the AI sector!

Private equity firms are finding innovative ways to drive value creation beyond financial engineering and cost reduction. The future of value creation involves leveraging GenAI technology, talent management and focusing on pricing strategies. Read more from our PwC industry experts: https://lnkd.in/g4-672wS #PrivateEquity #PrivateCapital Eric Janson I David Brown I Hugh Lloyd Ellis I Kevin Desai I Steve Roberts

Accenture's latest report underscores the urgent need for #PrivateEquity firms to revamp their due diligence processes. In today's competitive landscape, leveraging advanced technologies like AI and comprehensive analytics is crucial. This shift transforms due diligence from mere risk assessment into a powerful tool for value creation. The emphasis is on integrating deeper insights, operational readiness, and tech-enabled efficiencies to enhance investment outcomes and drive superior returns. Credit to Akash Trivedi for the original post

In this article from Deloitte United States, see how private equity firms can dive in and create additional value across the investment lifecycle by embarking on a data-driven journey.

Several multi-billion dollar industries are primed for tech adoption, yet remain largely untapped by entrepreneurs and innovators. One such industry is Due Diligence. McKinsey runs a $1 billion-a-year due diligence business for private equity firms, with ~55% EBITDA margins. Accordion operates a $300M-a-year financial due diligence business, generating $100M in EBITDA—and it’s only a 12-year-old company. We recently produced a bite-sized piece featuring Ahmed Elashkar, former partner and head of M&A at KPMG, detailing the significant role of due diligence in transactions. For innovators ready to make an impact—this is your call to action. I hope this content sparks enough interest for you to consider developing a solution in this field. Link to the video: https://lnkd.in/dC6hKkx8

During the #pandemic, asset and #wealthmanagement firms invested in automation, upskilling and advanced technologies, and it doesn't appear that investment is slowing down. Read PwC's Mutual Funds 2030 to see how upskilling on #GenAI and #machinelearning are taking center stage: https://pwc.to/3AL4iqb

Road to Next A quarterly report exploring emerging investment trends in private financial markets and the venture capital ecosystem. https://lnkd.in/e8WFpj23

#GenAI is shaking up the business world, with 86% of businesses investing or planning to invest in the next 1-3 years, according to the EY ReImagining Industry Futures report: https://ow.ly/yzYE30sB14n #EYCanada #BetterWorkingWorld

Comprehensive #DueDiligence and #ValueCreationPlanning are the key to unlocking a deal’s full potential. More Investment Committees are requiring greater depth and rigor in the pre-deal process around data-driven convictions (not themes) that drive post-close value. The pre-deal phase is getting more attention. Our GenAI screening shows a 2.4x increase in mentions of due diligence, 7.7x of sourcing and screening, and 3.8x of value creation planning in YOUR PE earnings calls and articles. Still, 83% of #PrivateEquity leaders believe their current practices require substantial improvement. Together with Neto Alexander, at SuperReturn we shared Accenture research highlighting three critical approaches that can transform traditional due diligence and value creation planning into a dynamic, data-focused, value-driven process. I encourage you to watch the replay of our keynote here: https://lnkd.in/eHQNB2Xb Or access the full research report here: https://lnkd.in/eYjTfrgK    

As the deal market heats up, unlocking the full potential of diligence will be key to winning deals and generating strong returns.