24 Sep 2024
Investcorp, a leading alternative investment firm, today announced a strategic partnership with DiligentIQ, a rapidly growing generative AI-driven platform to transform and streamline private equity due diligence. Investcorp’s Strategic Capital Group (“ISCG”) is actively utilizing DiligentIQ to enhance its capabilities and support its portfolio of general partners (GPs) in piloting, implementing, and leveraging the power of artificial intelligence for their private markets due diligence processes. The companies aim to expand the partnership over time.
DiligentIQ was founded by Ed Brandman, former Partner and Chief Information Officer of KKR, where he was also a member of the Operations/Risk Management committee. He developed DiligentIQ to streamline private equity due diligence through large language model (LLM) integration. The platform was designed specifically for the complexities of private markets investing, and its ability to digest, understand, and analyze large, complex documents and data sets from a wide variety of sources, opening doors to new opportunities and efficiencies.
“ISCG is proud to be at the forefront of AI adoption in private markets, and as early adopters of the DiligentIQ platform, we have seen firsthand the transformative power of AI in our operations,” said Tim Osnabrug, Investment Partner, ISCG. “We believe in the power of AI and are committed to helping our current portfolio of GPs and future partners to embrace and start experimenting with this technology. Our partnership with DiligentIQ is a testament to this commitment and we look forward to seeing how it will shape the future of the industry.”
ISCG is focused on acquiring minority interests in alternative asset managers (GPs), particularly GPs who manage longer-duration private capital strategies. The group manages $1.5 billion of AUM and has completed 12 investments since its launch in 2019, placing it among the most active GP stakes investors in the industry. ISCG has partnered with mid-sized GPs across buyout, secondaries, structured equity, private credit, and real asset strategies.
Several of ISCG’s GP portfolio companies have reported significant time savings and efficiency improvements since they started using the DiligentIQ platform. The firms feel they have been able to streamline their operations and make more informed decisions due to the insights provided by the platform.
“Our portfolio companies have been actively using DiligentIQ and the feedback has been overwhelmingly positive,” said Ravi Thakur, COO & GP Development Partner, ISCG. “The platform has been applied to a wide variety of use cases, including reviewing credit agreements, portfolio company information, contracts, and private placement memorandums. These activities were previously labor-intensive and time-consuming, but the tool has already saved our GPs hundreds of hours of time.”
“The Investcorp partnership has exceeded our expectations,” Mr. Brandman shared. “Not only is the Investcorp team actively seeking to leverage DiligentIQ for their own data analysis and due diligence activities, but they’ve also encouraged their portfolio companies to adopt these cutting-edge tools. By embracing this novel technology, Investcorp and their portfolio companies can extract valuable insights and access critical information faster, leading to new perspectives as part of diligence and enabling their investment professionals to increase the breadth and depth of topics they review.”