Charlie Stack’s Post

With warm thanks to our contributors Alexandra Lutz, Matthew Katz, Bhavesh Dayalji, Matthew Papas and Todd Cullen for making the second in our Private Eye series on the private markets, this time focused on data and AI, so insightful. We see an opportunity for private equity, and "alternatives" firms more broadly, to change the perception of the industry, making the case for staying private more compelling. https://lnkd.in/erizdVh4

The latest Asymmetric Advantage Data & Analytics newsletter is live. Please read, share and subscribe. This time I dig into S&P Global CEO Douglas Peterson’s interview at the Raymond James Institutional Investors Conference last week, focusing on five M&A-related topics: - Detail on the Visible Alpha acquisition; - S&P Global’s divestment strategy (including the upcoming divestment of Fincentric); - S&P Global’s acquisition strategy; - The status of the IHS Markit integration; - What has happened to the Kensho acquisition? Data & Analytics companies mentioned: S&P Global Visible Alpha IHS Markit Kensho Technologies S&P Global Market Intelligence S&P Global Ratings S&P Global Commodity Insights S&P Global Mobility S&P Dow Jones Indices Accuris IDX™ Thomson Reuters Other companies mentioned: Raymond James KKR Investcorp S&P Ventures a16z crypto Andreessen Horowitz Collingwood Capital Individuals mentioned: Douglas Peterson Steve Hasker Daniel Nadler Robin Wigglesworth Chris Dixon Rory Brown Daniel Susskind Byrne Hobart, CFA Erik Torenberg

Change is afoot in the private equity landscape, and we’ve got you covered on what you can expect 👇 According to the Private Equity International 2024 Future of Private Equity Report, burgeoning strategies, alternative capital sources and new technologies are giving rise to shifts across the private equity landscape. ➡️ Unlocking new capital sources Last year, distributions slowed, and many limited partners became more selective about where they committed capital, resulting in many private equity firms tapping into alternative investor pools. Many private equity firms are grappling with how to find new capital sources, but the answer is clear, and something we do here at Merak Group: they need to invest in teams and infrastructure that understand the private wealth market and nurture distribution relationships. ➡️ Moving in on the secondaries action In 2022, private equity secondaries funds raised around $34 billion, whereas in 2023, they raised almost $100 billion. According to the Private Equity International, the growing opportunity has led to new entrants, including the launch of secondaries strategies by buyout fund managers. ➡️ Getting to grips with AI AI is impacting every industry, with the private equity being no exception. 7% of limited partners are currently using AI tools for fund monitoring, with 38% planning to do so over the next two to three years. General partners believe AI will be most useful for due diligence, data analysis tasks, portfolio management, and performance tracking. However, AI isn’t without its risks, and private equity firms are trying to predict them and determine appropriate governance policies and procedures. Want to learn more about the future of private equity? Download the full report here: https://buff.ly/3JPGJhd #PrivateEquity #Finance #Investing #Investors

Technology’s Magnificent Seven captures investors’ attention, along with the wider AI boom. Piyasi Mitra speaks with fund managers navigating global equities, where a big focus is on balance sheets and AI innovation. Read the full feature here: https://bit.ly/3P48Pbx #technology #investors #fundmanagers #fundmanagement #AI

  In private equity and venture capital, firms have invested in using external data sources often referred to as “alternative data,” a broad term used to describe information sourced from outside a company’s internal systems, including social media chatter, news feeds, government reports, industry databases, anonymized credit card transactions, and satellite imagery. For private investors eager to stay on the cutting edge, there are significant opportunities: from identifying potential investment opportunities and conducting due diligence, to adding value post-investment. While these approaches have been honed by investors, they also offer models for how companies across industries can use alternative data.

With artificial intelligence garnering significant investor interest and inflows over the last year, fund managers are bracing for the many opportunities and risks stemming from these investments in 2024. https://lnkd.in/ghkzzfFc

According to recent BCG report, the global financial wealth has dwindled by 4% to $255tn, for the first time in 15 years. This decrease coupled with rising costs for wealth managers due to large teams, wage inflation, and increased tech investments, calls for a well-defined strategy. The growing significance of environmental, social, and governance (ESG) factors, stringent regulatory scrutiny, increased dependency on financial analytic tools, and a deeper integration of AI, machine learning, and automation are some key elements defining the wealth management space. #esg #environmentalresponsibility

Change is afoot in the private equity landscape, and I've got you covered on what you can expect 👇 According to the Private Equity International 2024 Future of Private Equity Report, burgeoning strategies, alternative capital sources and new technologies are giving rise to shifts across the private equity landscape. ➡️ Unlocking new capital sources Last year, distributions slowed, and many limited partners became more selective about where they committed capital, resulting in many private equity firms tapping into alternative investor pools. Many private equity firms are grappling with how to find new capital sources, but the answer is clear, and something we do here at Merak Group: they need to invest in teams and infrastructure that understand the private wealth market and nurture distribution relationships. ➡️ Moving in on the secondaries action In 2022, private equity secondaries funds raised around $34 billion, whereas in 2023, they raised almost $100 billion. According to the Private Equity International, the growing opportunity has led to new entrants, including the launch of secondaries strategies by buyout fund managers. ➡️ Getting to grips with AI AI is impacting every industry, with the private equity being no exception. 7% of limited partners are currently using AI tools for fund monitoring, with 38% planning to do so over the next two to three years. General partners believe AI will be most useful for due diligence, data analysis tasks, portfolio management, and performance tracking. However, AI isn’t without its risks, and private equity firms are trying to predict them and determine appropriate governance policies and procedures. Want to learn more about the future of private equity? Download the full report here: https://buff.ly/3JPGJhd #PrivateEquity #Finance #Investing #Investors

A few thoughts for the beginning of the year 👀