4 Ways AI Is Transforming Private Market Fund Management
In our new report, leading LPs and GPs share how they’re using AI to gain an edge — and where they see the technology going next.
Every efficiency and insight matters for private market fund managers — from target due diligence through fundraising and reporting. What sets the winners apart? Data. But turning that data into an advantage is where the real challenge begins.
General partners (GPs) are sitting on volumes of unstructured information — data that holds critical signals on risk, performance and opportunity, yet remains difficult to access and act on. At the same time, limited partners (LPs) are demanding greater transparency, increasing pressure throughout fundraising and reporting cycles.
For GPs, the ability to convert raw data into actionable insight — while improving efficiency across portfolio management and investor relations — has become a clear differentiator. Meanwhile, artificial intelligence’s (AI’s) ability to surface insights and automate workflows has become increasingly powerful as its presence expands across LP and GP workflows.
How are private markets firms on the cutting edge of AI adoption leveraging the technology today, and where is its impact being felt? In our new report, What AI Adoption Means for GPs and LPs, alternative investors across the U.S., U.K. and Europe share learnings from their AI journeys spanning due diligence, portfolio management, investor reporting and compliance.
Here are four areas where they’re already seeing results:
- Faster, more scalable due diligence
At Agellus Capital, integrating AI into due diligence workflows has significantly reduced manual effort. As Managing Director Justin Smith explains, “What used to take 30 to 45 minutes of data analysis and data entry per deal now happens in three to five minutes. My colleague has an extra 10 hours a week to do other important work.”
StepStone Group has also embedded AI into its investment process. The firm uses generative AI trained on prior investment committee (IC) materials to draft investment summaries. As Qi Liu, director and head of AI, explains, the tool “pulls structured and unstructured deal materials to generate a consistent, high-quality first draft that teams can quickly refine.”
- Smarter deal sourcing and pipeline intelligence
With more time, resources and insights to apply to deal sourcing, teams can prioritize the best value creation opportunities earlier in the funnel. AI tools ingest large volumes of market data, making it easier to answer key questions around target company performance and sector activity. Firms are also using AI to analyze historical deal data and internal knowledge, helping them identify patterns across industries, geographies and vintages.
Looking ahead, firms are trending toward more proactive, always-on capabilities. As StepStone’s Qi Liu describes it, the goal is to create an AI agent that is “continuously scanning the market to spot early competitive threats, protect revenue and surface growth opportunities.”
- Real-time portfolio monitoring and value creation
As managers continue to reduce their reliance on multiple expansion, AI adoption is at the top of the list of revenue growth levers to pull. GPs are working with management teams and technology experts to guide these initiatives and identify the highest impact areas. “It’s imperative,” says Justin Smith, managing director at Agellus Capital. “We’re considering onboarding an AI-dedicated thought leader who can flex into our portfolio companies to help them identify and implement different AI tools.”
To enhance portfolio company performance tracking, firms like Nordic Capital are exploring how to layer generative AI onto existing data platforms to more accurately capture qualitative inputs. As CTO Mark Peacock explains, the aim is to move beyond metrics that are “subjective and time-consuming” and make them more consistent and scalable, helping build a more complete picture.
- Streamlined investor reporting and LP communications
Much like fund managers who are moving beyond standard key performance indicator (KPI) reporting and embracing a more holistic approach to performance monitoring, LPs are doing deeper fund diligence and seeking real-time visibility into their portfolios.
To meet growing demands for speed and transparency, fund managers are using AI to generate LP-ready reports, accelerate due diligence questionnaires (DDQs) and expand the breadth of metrics delivered on-demand, all while maintaining clear audit trails and data governance. The result is not just greater efficiency, but more personalized and responsive communications with LPs.
Building connected, end-to-end fund workflows
The next wave of AI-embedded private market funds will be led by those who can connect workflows and intelligence across the investment life cycle. Early movers are looking beyond point solutions toward AI tools that can link sourcing, portfolio management and reporting into a more seamless process.
SS&C Intralinks DealCentre AITM and FundCentre AITM AI bring these capabilities together — enabling faster due diligence, more targeted fundraising, and streamlined investor onboarding and reporting in a single connected environment. With AI-powered insights at their fingertips, investors can spend less time managing data and more time creating value and lasting relationships.
To learn more about how leading firms are turning AI into a competitive advantage, read the full report.