AI in Private Equity: A New Era of Value Creation
At Lancor, we’ve spent decades helping private equity firms build high-performing leadership teams for their portfolio companies. Today, the landscape is shifting—fast. Artificial Intelligence (”AI”) is no longer a futuristic concept; it’s a central force in value creation. For Private Equity (”PE”) investors, understanding how to harness AI is becoming essential not just for operational efficiency, but for competitive advantage.
1. AI Is Reshaping the Value Creation Playbook
Historically, value creation in Private Equity has relied on operational improvements, strategic repositioning, and leadership upgrades. While these remain critical, AI is now augmenting and accelerating these levers. From predictive analytics in supply chains to intelligent automation in finance and HR, AI is enabling portfolio companies to move faster and smarter.
However, many PE firms are still in the early stages of adoption. According to recent insights, only a fraction of PE-backed companies have embedded AI into their core operations. The opportunity lies in moving beyond experimentation to enterprise-wide integration—starting with leadership that understands both the technology and the business impact.
2. Leadership Is the Missing Link
AI’s potential is vast, but its success hinges on people. The most advanced tools are ineffective without executives who can translate data into decisions. This is where Lancor plays a pivotal role. We help PE firms identify and place C-suite leaders who not only embrace innovation but can lead digital transformation across the organization.
Whether it’s a CEO with a track record of scaling tech-enabled businesses or a CFO fluent in AI-driven forecasting, the right leadership team is essential to unlocking AI’s full value. As AI becomes a board-level priority, we’re also seeing increased demand for Independent Board Directors with deep experience in data governance, cybersecurity, and digital strategy.
3. AI Is a Strategic Imperative—Not Just a Tech Upgrade
Private equity firms must treat AI as a strategic pillar, not a bolt-on solution. This means aligning investment theses with digital capabilities, embedding AI into diligence processes, and ensuring portfolio leadership is equipped to execute. Firms that do this well are already seeing outsized returns—from faster EBITDA growth to improved exit multiples.
At Lancor, we’re helping our clients stay ahead by building leadership teams that are AI-ready. We understand the nuances of private equity environments and the urgency of value creation. Our approach combines deep sector expertise with a global network of transformational leaders—because in today’s market, talent is the ultimate differentiator.
Conclusion
AI is transforming Private Equity, and leadership is at the heart of that transformation. As a Managing Partner at Lancor, I believe the firms that invest in the right people—those who can harness AI to drive growth—will define the next generation of success in this industry.
