The AI-Powered GP, Part Two: How Private Equity Firms Are Scaling Smarter

In the second installment of The AI-Powered GP video series presented by SS&C Intralinks and Real Deals Media, I joined Dominic Dalli, managing partner at Sovereign Capital Partners, to discuss how private equity (PE) firms are using artificial intelligence (AI) to manage scale and complexity in an increasingly competitive market.

The first episode of the series explored how evolving limited partner (LP) expectations are shaping AI adoption across private markets and why firms are increasingly focused on improving transparency and operational efficiency. This second discussion builds on those themes by examining how firms are scaling operationally while maintaining the control, consistency and visibility needed to support growth.

The conversation focused on a reality many firms are facing today: private markets organizations have grown dramatically in size and sophistication over the last decade, but operational models have not always evolved at the same pace.

Below are some of the key themes we discussed, including how fund managers are leveraging AI to manage information, streamline workflows and build more resilient operating models.

AI as an enabler, not a replacement

One of the central themes throughout the discussion was that as PE firms scale, AI is becoming an increasingly important tool for supporting human expertise rather than replacing it. 

As firms expand into multiple fund structures and serve increasingly demanding LPs, the operational burden becomes significantly more complex. Processes that once worked for smaller organizations are becoming increasingly difficult to scale. Private equity assets under management have quadrupled since 2008, creating significant operational pressures for firms that were originally built around lean teams and relatively simple structures. 

As Dalli explains, growth has required firms like Sovereign Capital to institutionalize processes and invest in infrastructure that did not exist 10 or 15 years ago. “We’ve had to institutionalize a load of our processes,” he says, noting that today’s firms rely on a much broader range of skills, systems and operational expertise than they did in the early years of private equity.

While automation can dramatically improve efficiency, I believe it is important to remember that technology is an enabler. Human judgment remains critical in private markets investing. That balance becomes especially important during live deal processes, where firms are using AI to support due diligence, document review and data analysis. AI can summarize large volumes of information quickly and surface relevant insights, but the quality of those outputs depends heavily on the quality and governance of the underlying data.

We also discussed how automation is transforming deal origination and company monitoring. Firms today are using increasingly sophisticated customer relationship management (CRM) and automation systems to track much larger universes of companies and identify investment opportunities more efficiently. But even as AI capabilities continue to evolve, relationship-building, trust and human judgment remain essential differentiators that technology alone cannot replace in the investment process.

Governance and connected intelligence matter more than ever

As AI adoption accelerates, firms need to ensure they are feeding systems the right information while also maintaining strict controls around confidentiality and permissions. 

This is where purpose-built, AI-powered platforms are playing an increasingly critical role. At SS&C Intralinks, we are seeing firms look for technology that not only automates workflows, but also connects intelligence across fundraising, deal execution and investor communication to drive faster, more informed decision-making. 

Solutions like Intralinks FundCentre AI™ help firms manage the full fund life cycle more efficiently — from fundraising and onboarding through to reporting and LP communications — while Intralinks DealCentre AI™ supports end-to-end mergers and acquisitions (M&A) execution, including deal preparation, marketing, diligence and pipeline management. Powered by our proprietary AI engine, Link, these platforms are designed to help firms centralize information, surface actionable insights and create more scalable operating models across the organization.

Transparency is no longer optional

Another takeaway from the discussion is how LP expectations have evolved alongside technology. Historically, operational transparency may have been viewed as a differentiator. Today, it is increasingly becoming a baseline expectation. LPs now expect faster access to information, more detailed reporting and greater visibility into processes. As firms scale, operational responsiveness is becoming closely tied to investor confidence and fundraising success.

This shift is also changing how firms think about the relationship between operational infrastructure and front-office execution. Increasingly, operational capabilities are no longer viewed as separate from the investment process — they are becoming a core part of how firms build trust and compete for capital. The true test of an operating model often comes during high-intensity moments — live deals, fundraising cycles and LP diligence processes — when firms need to deliver accurate information quickly and consistently. Firms that can do this effectively are often better positioned to scale with confidence and strengthen long-term LP relationships.

Building the future operating model

What stood out most from our discussion was how closely operational excellence has become linked to long-term success in private markets. But technology alone is not the goal. Firms adopting AI and automation also need to ensure they preserve the human judgment, relationships and culture that ultimately drive performance and build long-term value.

As PE firms continue to scale, operational strength is becoming a competitive differentiator in its own right. Firms that can combine strong governance, connected workflows and human insight into a cohesive operating model will be better positioned to adapt to an increasingly demanding market environment.

At the same time, rising LP expectations are creating new pressure around speed, accuracy and transparency. As firms manage growing volumes of investor communications and due diligence requests, the ability to maintain trust and consistency at scale is becoming just as critical as operational efficiency. This raises the next question: How can general partners (GPs) respond faster without compromising quality, oversight or control? To find out, stay tuned for the third installment of The AI-Powered GP.