AI applications are becoming increasingly useful in the private equity industry. Selecting the right tools for deal sourcing, due diligence, portfolio management and financial modeling allows private equity professionals to spend their time wiser. 

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In this article we list some of the leading AI tools tailored for private equity firms.

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Tools to Improve Deal Sourcing 

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Inven

Inven helps private equity firms to find high-quality deals, potential add-on targets and platform companies efficiently. Inven can reduce hours of desktop research and provide all relevant companies and their data points in one place. Inven evaluates potential targets quickly across global markets by keywords, search parameters, or matching example companies. The platform is designed to grow the quantity and quality of deals entering the funnel and maintain a competitive edge in the market. 

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Key Features:

  • Covers 23M+ companies globally, from startups to corporations. Especially focused on lower-middle market and middle-market companies.
  • Easy and efficient way to build long lists of potential targets
  • Wide range of data points, including ownership, funding data, operational locations, and contact information. 
  • Easy-to-use search tool to build target lists and track specific companies and their key events.
  • Contact data of 430M+ professionals with a focus on titles such as CEO, Founder, Owner, Head of M&A and CFO.
  • Investor search for finding investors.
  • Intent signals that locates companies likely to sell based on ownership, funding, and career.
  • Automated AI Screening for conducting initial analysis of the company list.

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PitchBook

PitchBook is a trusted database, which offers comprehensive insights into global capital markets. It gives private equity firms tools to collect information for deal sourcing, valuation, due diligence and benchmarking. PitchBook also produces proprietary research and analytics.

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Key Features:

  • Provides company profiles, financials, and funding history.
  • Information on M&A, such as deal amounts and deal multiples.
  • Real-time updates on market trends and proprietary research.
  • Tools for financial modeling, market research, and benchmarking. 

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Dealroom

DealRoom is a software company that provides M&A deal lifecycle management solutions. They offer a platform designed for due diligence, post-merger integration, and project management processes. Dealroom also supports private equity firms in discovering emerging companies and tracking market changes. Their platform combines project management features with a virtual data room.

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Key Features:

  • Database covers startups, investors, and M&A activity globally.
  • Various data points on each company, corporate innovation ratings, predictive algorithms, and more.
  • Tracks funding rounds, valuations, and key company milestones.
  • Offers customizable dashboards and tailored analytics for specific sectors and geographies.
  • In-house Intelligence Unit for following funding rounds, acquisitions, and company milestones.

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Sourcescrub

SourceScrub provides solutions to identify, evaluate, and manage investment opportunities in the private market. The platform provides private company signals, purpose-built tools, and on-demand data operations to methodically find investment opportunities.The platform also aggregates market maps, award lists, and conference data. 

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Key Features:

  • 15M+ private company profiles.
  • Tailored searches based on industry, geography, and financials.
  • Integration with existing deal flow management tools.
  • Bi-directional integrations with CRMs and CRM enrichment.
  • Executive contact details 
  • Connecting dataset to data warehouse 

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Platforms for Market Intelligence

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CB Insights

CB Insights is a market intelligence platform about private companies, venture capital, and markets. The platform provides AI-powered tools to forecast market trends, identify high-growth companies and track innovation activity. CB Insights equips private equity firms with more predictive analytics and custom reports. 

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Key Features:

  • Extensive coverage of startups, funding rounds, and M&A activity.
  • Tailored research and analytics for specific industries and sectors.

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Kensho

Kensho, a subsidiary of S&P Global, is an analytics platform that specializes in financial analysis, market trend prediction, and risk management. It leverages machine learning and NLP to identify insights from unstructured information. Kensho supports private equity with in-depth market data and predictive analytics.

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Key Features:

  • Predictive analytics on market movements and trends.
  • Analyzes unstructured data such as news and earnings calls with NLP.
  • Scenario Analysis on potential market outcomes.

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S&P Capital IQ Pro

S&P Global Capital IQ Pro is a financial research and analysis platform by S&P Global Market Intelligence. It offers comprehensive data, analytics, and research tools. S&P Global is a trusted source of information for professionals in the investment banking industry.

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Key Features:

  • Extensive financial information and market data.
  • Tools for financial modeling, risk assessment, and valuation.
  • Research and reports across various sectors.
  • Personalized data visualization for tracking relevant metrics.

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Tools for Due Diligence and Risk Assessment

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These platforms automate complex financial modeling and predictive analytics, aiding private equity companies in risk assessment and valuation.

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Kira Systems

Kira Systems is a contract analysis and due diligence platform for reviewing legal and financial documents. It uses machine learning to quickly identify and extract key information from contracts. Kira Systems helps private equity firms reduce the time and cost of due diligence by automating the review of complex legal documents.

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Key Features:

  • Identifies and analyzes key clauses in contracts.
  • Tailors the extraction process to specific needs.
  • Handles large volumes of documents in bulk.

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Evisort

Evisort is a contract management platform that automates the review, analysis, and management of legal documents. It helps organizations streamline their contract workflows and improve compliance. Evisort enables private equity firms to faster conduct due diligence and enhance contract management efficiency.

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Key Features:

  • AI-driven contract analysis and extracting key data points.
  • Contract lifecycle management from creation to renewal.
  • Tailors processes and workflows to specific organizational needs.

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DataRobot 

DataRobot is an AI-driven platform that automates the creation, deployment, and management of machine learning models. It helps businesses to use AI for predictive analytics and decision-making without requiring deep data science expertise. DataRobot supports private equity firms in portfolio management and automated predictive analytics.

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Key Features:

  • Building and deploying Automated Machine Learning (AutoML) models.
  • Provides AI-powered predictions and risk assessments.
  • Connects with various data sources for seamless model building.

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Alteryx

Alteryx is a company that offers a wide range of data analytics software and solutions. They provide tools that enable businesses to easily access, blend, and analyze data from various sources. The platform als enables users to visualize data quickly and simplifies complex data processes. Alteryx helps private equity firms streamline data analysis and automate workflows in advanced analytics.

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Key Features:

  • Data blending and preparation. 
  • Supports predictive, statistical, and spatial analytics.
  • Advanced analytics for users of all skill levels.
  • Automates workflow, including repetitive data tasks and processes.

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Tools for Financial Analysis, Modeling and Portfolio Management 

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AI platforms can support Private equity firms in predictive analytics, scenario analysis, valuation models and portfolio management. There are tools also for forecasting financial performance, modeling various economic and market conditions and assessing risks.

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ZBrain

ZBrain is designed to enhance portfolio management and performance analysis for private equity firms. This AI-powered tool enhances portfolio performance analysis by providing automated processes, real-time insights, and data-driven reports. ZBrain’s AI research solution for due diligence is designed to enhance due diligence assessments from financial performance and regulatory compliance to operational efficiency and market position. 

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Key Features:

  • Automated performance reporting on portfolio performance.
  • Up-to-date insights on portfolios.
  • AI-powered analytics for data-driven decisions.

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Nosible

Nosible is an AI-powered platform for portfolio performance management and analysis for investors and private equity firms. It offers advanced visualization and comparison tools to help users monitor and optimize their investments. 

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Key Features:

  • Tracks 32,000 companies and 45,000 equity funds around the world.
  • AI-driven visual insights into portfolio performance.
  • Tools for comparative analysis.

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Roic.ai

ROIC.ai offers ten years of financial statement data in one easy-to-use screen. It has comprehensive company summaries, 30+ years of financial statements, and earnings call transcripts in one place. ROIC.ai is designed to streamline financial analysis and investment research for private equity firms and investors. It helps private equity firms reduce manual data processing time.

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Key Features:

  • Combines financial data from filings, reports, and other documents.
  • AI-powered analysis of financial metrics.
  • Customizable dashboards and data visualization to PE needs.

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Tools for Managing Communications and Emails

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InboxPro

InboxPro is an email management platform designed for professionals handling high volumes of emails. InboxPro streamlines communication with email templates, automated drafting and follow-up sequences. The platform also offers its tracking and analytics tools that provide real-time insights into prospect engagement.

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Key Features:

  • AI Email Assistant for faster email writing
  • Email templates 
  • Automated follow-up sequences and email tracking
  • Automatic calendar scheduling

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Outboundly

Outboundly is a cold email outreach platform designed to maximize lead generation. It leverages AI to personalize emails, set up automated sequences, and manage large-scale email campaigns with ease. Outboundly helps private equity professionals to scale deal sourcing by automating personalized outreach. Its AI tools help improve engagement, boost response rates, and manage high volumes of communications.

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Key Features:

  • AI-driven email generation and automated email sequences
  • Target audience filtering
  • A/B testing for email performance
  • Inbox warm-ups to improve deliverability
  • Integration with CRM and email management tools

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Tools for Building Slide Decks

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SlideInstantly 

SlideInstantly automatically generates PowerPoint presentations. By inputting a brief description or key points, the tool creates a fully designed and structured slide deck in seconds. SlideInstantly provides a quick way to create the foundation of a presentation, so that users can focus on refining the content and design.

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Key Features:

  • Quickly creates professional presentations.
  • Editable templates and designs.
  • Automates the slide creation process.

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SlideGPT

SlideGPT is an AI-powered Google Slides add-on that simplifies making presentations. By leveraging ChatGPT, it helps users generate presentation outlines, slides, and visual content in one click. 

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Key Features:

  • AI-powered slide generation from text or prompts
  • Theme customization 
  • Unlimited usage without restrictions
  • Integration with Google Slides and ChatGPT API

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Key Considerations When Selecting AI Tools

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The integration of AI into private equity operations offers a lot of potential. However, the selection of suitable AI tools requires consideration of several factors.

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Data Integration

A fundamental aspect of AI tool implementation is seamless data integration. The tool must be capable of effortlessly integrating with your firm's existing data systems, including financial databases, CRM platforms, and deal management software. This ensures a smooth data flow and prevents data silos, which could hinder AI's ability to generate accurate insights.

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Scalability

The chosen AI tool should be scalable to accommodate for portfolio growth and growing deal sizes. A tool that can handle data volumes, complexity and large analytical requirements without compromising performance is necessary for success.

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Intuitive User Interface

AI tools should make professionals’ work day easier, not more complicated. An intuitive user interface is crucial for efficient adoption and integration of the tool. Too complex tools can lead to underutilization. Prioritize tools that offer intuitive navigation and clear visualizations.

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Cost-Benefit Analysis

The investment in an AI platform requires a cost-benefit analysis. The tool's ROI can be evaluated against factors such as cost savings, improved decision-making, and operational efficiency gains. It is essential to align the tool's capabilities with your firm's specific needs and objectives. 

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Combination of AI tools and expertise

When integrating AI into private equity processes, there should be a right balance between AI and human expertise. AI should be viewed as a tool to support decision-making, not replace it. Combining the power of AI with the experience of PE professionals is the key to achieving optimal results.

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