Private equity has long been defined by its ability to spot opportunities others miss and to turn potential into measurable value. A number of my PE clients have made incredible returns over the last few years but the dynamics of the industry are shifting.
Competition for quality assets is intensifying, investor expectations are rising and the complexity of portfolio oversight has increased as firms scale across multiple geographies, sectors and fund structures.
At the same time, regulatory pressure and reporting requirements are growing. ESG has moved from a side consideration to a central pillar of investor trust and deal qualification. LPs expect more frequent, more transparent and more personalised reporting. Regulators demand higher standards of auditability, risk management and operational control.
Internally, many firms still rely on fragmented systems and heavily manual processes to manage the investment lifecycle. A number of my clients are chasing the same deals and deal teams are operating under compressed timelines that leave little margin for inefficiency during due diligence.
Portfolio monitoring remains dependent on retrospective reporting and Excel-driven analysis. Fund administration is often slowed by reconciliations, manual reporting cycles and inconsistent data quality. These inefficiencies limit scalability and increase risk at precisely the point where speed, accuracy and depth of insight are becoming critical.
Intelligent Automation (AI plus automation) presents a strategic opportunity to reset this model. By combining AI, process automation, advanced analytics and natural language processing, PE firms can build an integrated ecosystem that supports faster deal sourcing, sharper due diligence, streamlined fund operations and proactive portfolio value creation. Digital workers and automated workflows free deal and operating partners from low-value activity, while data-driven insights improve both investment decisions and investor communications.
I don’t believe that this is simply a cost or efficiency play. It is about building a private equity model that is fit for the next decade: more agile, more scalable and more transparent. The firms that embed Intelligent Automation (IA) into their operating model will be positioned to outperform peers on deal execution, portfolio returns and investor confidence. Those that fail to act risk being left behind by competitors that move faster, operate leaner and deliver value with greater precision.
NOTE: Upcoming Industry Survey – Intelligent Automation in PE
We are about to survey the entire UK Private Equity industry (UK, European and US funds) on the role of Intelligent Automation (AI plus automation) within their fund. This undertaking will be the most comprehensive industry survey on Intelligent Automation to date and will include the Panamoure Automation Maturity Index (PAMI) and the Panamoure Automation Value Creation Score (PAVCS) which is a specialised 7-dimension assessment framework designed exclusively for Private Equity firms to measure their effectiveness in leveraging automation as a systematic value creation lever in the fund and across their portfolios.
Unlike general automation maturity assessments, PAVCS focuses on PE-specific capabilities that directly drive competitive advantage and portfolio company performance.
Ahead of that survey being undertaken here is an up front view of the current challenges being faced in PE Operations.
Access the whitepaper here
