Private Equity Edition ·
PE Hunts AI-Ready Targets
As the year winds down, one message is echoing across the PE ecosystem: AI value starts with foundations.
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Hi, I’m Lily. I created this PE edition of the AI Dispatch for our growing community of thousands of private equity leaders and portfolio company operators navigating AI implementation.
This week’s theme: the readiness advantage.
As the year winds down, one message is echoing across the PE ecosystem: AI value starts with foundations. Citizens’ survey shows 97% of PE firms now screen targets for AI readiness. Florida SBA is using AI to scrutinize fund-level data with new precision. Innovaccer proves that data unification unlocks enterprise-scale AI. And Tech Mahindra’s Amit Vij reminds us that even the most sophisticated AI is only as good as the data beneath it. Consider this your Christmas Eve reading: a moment to step back from the deal flow and reflect on who’s building the right foundations.
What GPs Are Whispering About
Citizens Survey: 97% of PE Firms Now Screen for AI Readiness in Targets
Citizens surveyed 153 PE leaders and found external AI vendor use dropped from 76% to 52% year-over-year as firms build internally amid data security concerns. AI adoption continues: 70% deploy it for investment analysis, 62% for fraud detection. The standout finding: 97% now view a successful AI strategy as an attractive trait in potential portfolio companies. For portco operators, AI fluency is a decisive factor in deal evaluation and exit positioning. Read more →
Robotics Emerges as Top PE-VC Target
Robotics startups drew over $8.8 billion in Q2 2025 alone, with PE firms increasingly active alongside traditional VCs. Capital is concentrating in humanoid robotics (Apptronik, B Capital’s portco, raised $403M), surgical systems, and AI-enabled automation platforms. PE players are bridging early-stage bets to commercial scale, particularly in logistics and manufacturing automation. For GPs building sector theses, robotics is emerging as a high-conviction category worth sourcing now. Read more →
Major LP Is Using AI to Monitor PE Fund Performance
Florida SBA, a $219 billion pension, is using Microsoft Copilot to analyze its private markets exposure: tracking distribution sources like NAV loans, dividend recaps, and exits across PE funds. AI also supports IPO confirmations, portfolio company buyer identification, and manager research. By embedding AI into daily workflows, Florida SBA frees staff capacity for deeper investment analysis and oversight. For PE leaders: LPs are getting more sophisticated, which means that transparency and data hygiene now carry reputational weight. Read more →
Portfolio Gold
Every week, we’ll bring you a new, real-world example of how targeted AI deployments within portfolios are solving persistent business challenges.
Innovaccer Scales AI Across the Healthcare Enterprise
Company: Innovaccer (WestBridge Capital portco, among other PE backers), a healthcare AI platform company powering providers, payers, and government organizations.
Problem: Health systems are under unprecedented pressure to improve outcomes, optimize operations, and manage rising costs, all while working with fragmented data siloed across EHRs, claims, and operational systems. Payers face similar strain: manual chart retrieval and disjointed risk and quality programs that can’t keep pace with expanding CMS audits and the shift toward value-based care.
Solution: Innovaccer built a healthcare-native AI infrastructure spanning providers and payers. Innovaccer Gravity unifies clinical, operational, and financial data into a single source of truth with 400+ pre-built connectors and enterprise-grade security (HIPAA, HITRUST). Galaxy by Innovaccer targets payers with AI-driven chart retrieval, coding automation, predictive STARS analytics, and multipoint gap closure, all from a single command center. Underpinning both is Sara, Innovaccer’s AI assistant, which automates documentation, surfaces insights from patient interactions, and supports clinical decisions in real time.
Results:
30 minutes saved daily per physician on documentation
16% improvement in coding accuracy
$1M in potential incentive payments recognized
20% increase in call-to-schedule conversion
30% increase in patient volumes at UC Health
$3.2M saved at CHI Health
Lily’s Recommendation Corner
“How PE-backed companies are getting AI ready” with Amit Vij
In this interview from PEI Operating Partners Forum Europe, Amit Vij, SVP and Private Equity Leader from Tech Mahindra, breaks down what mid-market portcos need before they can leverage AI. The short answer: data fundamentals. Many PE-backed businesses grow through aggressive M&A, leaving behind a patchwork of ERPs, CRMs, and legacy systems. Before AI can deliver value, portcos must standardize platforms, migrate to the cloud, and ensure data is clean, secure, and trustworthy. Once that foundation is in place, Vij says, even smaller businesses can build sector-specific use cases, deploy agentic AI, and drive real productivity gains. The key is partnering with vendors who have a demonstrated track record. A short watch and a sharp reminder for the holiday season: AI readiness starts with data discipline. Watch/Listen here →
Lily’s Closing Thoughts
AI readiness is becoming a condition of entry. GPs are screening for it. LPs are monitoring for it. And the portcos winning with AI aren’t chasing tools; they’re building foundations.
As you head into the holidays, consider this your prompt for Q1 planning: Where does your data stand? What needs standardizing? What’s blocking scale?
Merry Christmas Eve to everyone who celebrates. And to all, a well-earned break. Wishing you warmth, rest, and time well spent. See you next Wednesday for our final issue of 2025!
Industry Events on the Horizon
SuperReturn GCC 2026: Saudi Arabia
January 26 - 27, 2026 | Riyadh
The GCC’s premier private capital gathering connects 1,000+ senior investors including 300+ LPs (Mubadala, PIF, KfW Capital) and 600+ GPs (Apollo, CVC Capital Partners). The event features 80+ speakers covering PE, private credit, VC, infrastructure, and real estate, plus LP-led sessions and curated networking. Free places for qualifying LPs. [Register here →]
NEXUS 2026
February 22 - 25, 2026 | JW Marriott Orlando, Grande Lakes
A premier gathering uniting PE leaders with active LP allocators through an LP Council, investor-only dinners, and pre-arranged meetings. Focus areas: navigating geopolitical fundraising turbulence, portfolio value creation, and raising capital in compressed timelines. Features curated introductions and swap sessions on fund tactics. [Register here →]
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