Editor’s Note: Technology is no longer a support function in private equity—it’s a strategic imperative. As traditional levers like financial engineering and operational improvements lose their edge, leading firms are reengineering their value creation models around AI, data analytics, cloud infrastructure, and cybersecurity. This article delivers a concise and timely overview of how top-tier private equity players—Permira, CVC Capital Partners, and Stirling Square—are redefining investment success through digital transformation. For professionals in cybersecurity, information governance, and eDiscovery, the implications are clear: technology isn’t just enhancing value; it’s becoming the value.


Content Assessment: AI, Cloud, and Cyber: How Tech Is Redefining Value Creation in Private Equity

Information - 92%
Insight - 90%
Relevance - 90%
Objectivity - 92%
Authority - 91%

91%

Excellent

A short percentage-based assessment of the qualitative benefit expressed as a percentage of positive reception of the recent article from ComplexDiscovery OÜ titled, "AI, Cloud, and Cyber: How Tech Is Redefining Value Creation in Private Equity."


Industry News – Investment Beat

AI, Cloud, and Cyber: How Tech Is Redefining Value Creation in Private Equity

ComplexDiscovery Staff

Technology is rapidly emerging as the new backbone of value creation in private equity. As traditional levers like operational efficiency and financial structuring reach maturity, leading firms are making a decisive pivot—integrating advanced technologies such as AI, cloud computing, and data analytics to generate competitive advantage. This shift marks a fundamental transformation in the investment landscape, with firms increasingly embedding digital capabilities into the DNA of their portfolios to drive growth, resilience, and superior returns across specialist industries and B2B services.

Historically, private equity value creation leaned heavily on operational enhancements, financial structuring, and market expansion. Today, those levers are being redefined by the adoption of transformative technologies. Early evidence underscores the impact: tech-integrated strategies are delivering median EBITDA growth of 11%—outpacing the 6–8% gains typical of traditional methods.

Leading Technology-Focused Private Equity Strategies

Permira has emerged as a leader in technology-focused investing. Its disciplined, pattern-recognition approach identifies growth in sub-sector verticals while applying digital expertise across its portfolio. Generative AI is now being embedded across portfolio companies, including Genesys, Reorg, Zendesk, McAfee, and G2.

The firm’s $8 billion Informatica transaction with Salesforce exemplifies this transformation. Under Permira’s ownership, Informatica evolved into a cloud-first, subscription-based platform with 95% recurring revenue. This strategic repositioning was instrumental in achieving a compelling exit announced in May 2025, with closure expected by early fiscal 2027.

CVC Capital Partners is integrating artificial intelligence across its €200 billion portfolio with a strategy centered on opportunity mapping, flagship deployments, and an MVP Accelerator Program. In a notable case, CVC deployed generative AI at Italy’s Multiversity Group to handle student queries—cutting administrative burden and boosting operational efficiency. The firm has also implemented AI training across its 1,200-person workforce.

Stirling Square Capital Partners continues to build expertise in technology investments across core sectors. Its £250 million acquisition of construction tech company Infobric emphasizes a broader strategy of integrating IT asset management to control risk and enable reinvestment in growth.

How Private Equity is Operationalizing AI

The role of AI in private equity has expanded beyond innovation into core operations. It now spans deal sourcing, market intelligence, execution, portfolio monitoring, investor communication, compliance, and analysis. Among PE professionals, 92% report a positive valuation impact from AI-driven insights.

Firms are also leveraging AI to streamline back-office functions—freeing teams to focus on higher-value strategic activities. Across verticals from manufacturing to healthcare, these strategies are delivering cost reductions of up to 28% and revenue increases as high as 44%.

The funding landscape reinforces this momentum. In Q3 2024 alone, AI startups attracted $19 billion in venture capital, accounting for 28% of all investment and surpassing sectors like biotech and healthcare. While fewer startups received funding, the concentration reflects increasing investor alignment around select, scalable winners.

Driving Growth in Specialist and B2B Sectors

Across traditionally capital-intensive sectors like manufacturing and engineering, private equity firms are deploying cloud infrastructures and AI-driven platforms to enable scalability and efficiency. These digital strategies are delivering tangible performance gains.

In B2B services, personalized buying experiences have become the new standard. AI tools now support role-based recommendations, product configuration, and context-aware engagement. Firms are modernizing infrastructure toward hybrid and multi-cloud architectures to remain competitive and scalable.

Cybersecurity is also no longer just a compliance function. Portfolio companies are being evaluated for zero-trust security frameworks, AI-driven threat detection, and proactive governance—recognizing security as a critical value driver.

Data Infrastructure and Market Performance

High-performing PE firms are investing in unified digital platforms that serve as a “golden source” of truth—eliminating silos and elevating decision-making across financial, operational, and ESG data. These infrastructures allow for more agile and targeted actions across the portfolio.

Family offices are taking note. Around 50% have increased allocations to private equity, compared to just 31% of traditional investors. Many are now pursuing digital-first strategies that align with the innovations driving modern private equity success.

Yet this momentum brings risk. More than half of PE firms report cyber incidents in up to 25% of their portfolio companies. With mounting regulatory scrutiny—including GDPR, CCPA, and sector-specific mandates—firms must navigate compliance while maintaining digital agility.

The market context also supports this shift. Software deal value reached $134.8 billion in 2024, a 32.4% year-over-year increase. Overall U.S. PE deal volume hit $838.5 billion—a 19.3% rise over 2023—reflecting growing appetite for scalable, tech-enabled assets.

Tech is the New Alpha: What Comes Next for Private Equity

The integration of technology in private equity is not just a modernization strategy—it’s a reinvention of the entire value creation model. Documented gains, including median EBITDA growth of 11% in tech-enabled firms, signal the tangible rewards of this evolution. Firms like Permira, CVC Capital Partners, and Stirling Square Capital Partners are setting the benchmark, demonstrating how digital transformation can unlock scale, agility, and investor confidence. In a landscape where speed, data, and cybersecurity define success, private equity players that lead with technology will define the next generation of outperformers. Those that lag risk irrelevance in an increasingly intelligent investment era.

News Sources:


Assisted by GAI and LLM Technologies

Additional Reading

Source: ComplexDiscovery OÜ

 

Have a Request?

If you have information or offering requests that you would like to ask us about, please let us know, and we will make our response to you a priority.

ComplexDiscovery OÜ is a highly recognized digital publication focused on providing detailed insights into the fields of cybersecurity, information governance, and eDiscovery. Based in Estonia, a hub for digital innovation, ComplexDiscovery OÜ upholds rigorous standards in journalistic integrity, delivering nuanced analyses of global trends, technology advancements, and the eDiscovery sector. The publication expertly connects intricate legal technology issues with the broader narrative of international business and current events, offering its readership invaluable insights for informed decision-making.

For the latest in law, technology, and business, visit ComplexDiscovery.com.

 

Generative Artificial Intelligence and Large Language Model Use

ComplexDiscovery OÜ recognizes the value of GAI and LLM tools in streamlining content creation processes and enhancing the overall quality of its research, writing, and editing efforts. To this end, ComplexDiscovery OÜ regularly employs GAI tools, including ChatGPT, Claude, DALL-E2, Grammarly, Midjourney, and Perplexity, to assist, augment, and accelerate the development and publication of both new and revised content in posts and pages published (initiated in late 2022).

ComplexDiscovery also provides a ChatGPT-powered AI article assistant for its users. This feature leverages LLM capabilities to generate relevant and valuable insights related to specific page and post content published on ComplexDiscovery.com. By offering this AI-driven service, ComplexDiscovery OÜ aims to create a more interactive and engaging experience for its users, while highlighting the importance of responsible and ethical use of GAI and LLM technologies.