Leveraging Digital, Data & AI Technologies to Increase Enterprise Value: How Private Equity Firms Are Getting It Right

We are in the midst of a sea-change in how private equity (PE) firms are increasing the value of their portfolio companies. In a world of higher interest rates and competition, financial engineering and cost take-outs are no longer sufficient to meet investor expectations. Data-enabled digital transformation is increasingly seen as the differentiator for increasing enterprise value in this new climate. As PE firms invest in these capabilities, they are developing playbooks for how data and AI can be leveraged to deliver new revenue streams and improve margins. Drawing from 30+ interviews with digital and data experts in PE firms across Europe and the United States and executives at their portfolio companies, the authors uncover the principles in these playbooks so that all leaders can better understand how they can use these tools to gain lasting competitive advantage.