The future of private equity: AI, value creation, and deal strategy

Datasite proudly sponsored the Finance Association of Miami (FAM) Q3 Speaker Series on Wednesday, September 30, at the Frost Museum of Science in Miami. Paul Bennett, Senior Vice President of Sales at Datasite, led a panel discussion on the challenges and opportunities shaping today’s private equity market.

A common theme across both panels was that private equity firms are navigating significant changes, particularly as AI introduces new opportunities and challenges. Firms are also adapting their playbooks to a market where inexpensive leverage and easy multiple expansion can no longer be taken for granted.

In this blog, we’ll dive deeper into the insights and biggest takeaways from the panel.

Private equity

• Eric Zinterhofer, Founder, Searchlight
• Ricky Stokes, Managing Director, Head of Lower Middle Market, HIG
• Jamie Elias, Managing Partner, Trivest

Panelists shared insights on the evolving market, highlighting key trends in investment strategies, value creation, deal sourcing, and exit planning amid shifting economic conditions.

Investment discipline in a rapidly evolving market

During the discussion, panelists distinguished temporary market noise from structural change, including higher interest rates, shifting valuations, tariffs, and potential disruption. The key takeaway: deep, company-specific diligence and price discipline remain central to decision-making. Ultimately, PE firms need to stay focused on underwriting the actual business rather than reacting to market headlines.

Operational value creation and exit planning

Gone are the days of sponsors relying on inexpensive leverage and multiple expansion alone. Panelists pointed to a clear operating playbook—supported by growth initiatives, cost improvements, add-ons, and early exit preparation—as a key driver of value creation. Planning for value creation and eventual realization from the beginning is becoming a differentiator in the PE playbook.

DPI, liquidity, and portfolio management

There’s no doubt that liquidity is important, panelists mentioned, but it should not come at the expense of sound investment decision-making. The speakers discussed the trade-offs among DPI, IRR, and MOIC, as well as alternatives such as recaps, minority transactions, and dividends, without forcing poorly timed exits.

Differentiated sourcing and founder relationships

Jamie Elias, Managing Partner at Trivest, described the company’s large founder-outreach funnel and emphasized that being the preferred partner matters beyond price. Relationship-building and sourcing discipline can distinguish firms in competitive processes. To win more deals, deal teams need early access, strong sourcing pipelines, and a clear understanding of the owner’s motivations.

Sector selection and AI-related uncertainty

Panelists focused on durable tailwinds without chasing fashionable sectors, discussing defensive businesses, electrification, grid investment, workforce retraining, and the valuation of uncertainty AI creates for some industries. Overall, attractive themes still require company-level analysis and valuation discipline.

AI in investing

• Ross Honey, Operating Partner, Searchlight
• Ryan Kaplan, Palingenix Equity
• Tanner Lee, Vice President, TJC

Panelists explored how AI is transforming private equity and M&A, highlighting its growing role in due diligence, deal execution, portfolio company performance, and investment decision-making.

From chatbots to agentic AI in M&A workflows

Panelists noted that AI is becoming increasingly integrated into private equity and M&A workflows. Beyond standalone chatbots, AI can support due diligence document review, data analysis, deal research, financial model checks and investment committee preparation.

Portfolio-company productivity and measurable impact

AI is increasingly being used to improve workflows across customer support, sales, operations, and other business functions. Panelists emphasized the importance of measuring its impact on costs, margins, and revenue, positioning AI as a driver of business performance rather than simply another tool.

AI supports, but does not replace, investment judgment

Panelists described AI as a valuable second set of eyes for testing assumptions, identifying blind spots, and challenging downside cases. However, they emphasized that human judgment, accountability, and decision-making remain essential.

Data readiness for AI adoption in private equity

Successful AI adoption requires strong operational readiness. Fragmented systems, limited data integration, regulatory considerations, and unclear ownership can slow implementation. Firms need modern data infrastructure, defined rollout plans, and accountable leaders to capture AI’s value.

Human differentiation in an AI-enabled market

As analytical tools become more accessible, human advantages such as relationships, creativity, trust, reputation, and sound judgment will become even more important.

Conclusion

The FAM Speaker Series highlighted complementary priorities for private equity teams.

The private equity panel emphasized diligence, founder relationships, sourcing discipline, and thoughtful exit planning. The AI panel showed how technology can increase the speed and scale of those activities. Together, the discussions reinforced a clear takeaway: AI can improve efficiency and strengthen deal execution, but human judgment, relationships, and analysis remain central to long-term value creation.