Coegil in FinanceProtect and grow client investments, augment portfolio manager performance, and manage risks and compliance with Coegil.
Asset managers, hedge funds, and private equity firms have used years of deal history and industry expertise to find and create investment returns. But market turbulence, threats from competitors, and growing regulation make it risky to rely solely on past methods. Adding to the challenge, investors can no longer rely on the traditional barriers to entry to keep non-traditional competitors with a technological edge at bay.
These firms see opportunities applying an AI-first approach across the entire investment lifecycle to frame a deal’s investment story compellingly to both LPs and GPs, identify favorable M&A events, and search for a successful exit.
AI techniques provide a compounding effect where the more you use them, the more you will identify opportunities to apply them throughout the investment lifecycle.
When Experience is Not Enough
As essential as experience is, experience alone won’t secure the best deals and generate the highest returns. Successful firms are turning to a data-driven approach powered by in-house know-how, alternative data sources, advanced analytics, and data science to uncover market edge.
Deal Screening & Due Diligence
Investment managers traditionally use target deal data and in-house spreadsheets to perform ad-hoc analysis in the early stages of the deal lifecycle. Although at times enough, this approach can seem overly intuitive and fail to utilize the best in-house know-how.
Given the pace and competitiveness of the market, investment firms use alternative data sources to enrich their out-of-the-box analysis and elevate their investment theses. Third-party data can overcome issues in the quality and depth of provided deal data.
Savvy investment managers increasingly rely on data-driven models and analytics in deal screening and due diligence phases to augment portfolio managers and overcome hidden biases in the decision-making process.
Of course, the best analysis is worthless unless you close a great deal before your competitors. Conventional approaches can be slow, unscalable, and highly error-prone. All are adding unwanted delays and risks.
Investment managers develop plans to create value through market positioning, product optimization, operational improvements, and cost reductions. A data-driven approach is a must-have to speed up formulation and execution.
Data and analytics help firms make decisions more quickly and sustainably throughout the deal’s entire lifecycle. These decisions often require blending data from financial, operational, and commercial departments to provide actionable insights.
Sophisticated analytics helps firms understand the markets better, identify customer trends, and stay ahead of the competition. These techniques also enable finding and assessing new, unexpected prospects or obstacles from a consistent decision-making framework – all of which increase the confidence of a successful exit.
Compelling Exit Strategy
When it’s time to exit, investment firms can harness their data, analytics, and modeling to promote a compelling equity story, demonstrate the value created by holding the deal and allow buyers to evaluate the deal effectively over the sales journey.
By using a solid, data-centric methodology, sellers provide vital information faster and easier. This approach promotes confidence, removes the likelihood of surprises, and encourages buyers to make bids sooner.
For instance, deals that grew through acquisitions must demonstrate they realized more than the additive value from a bolt-on purchase. Data spread across disparate and disconnected systems need to aggregated and linked into a common data platform to produce reports justifying the acquirer grew margins post-acquisition. This requires enhanced business intelligence to paint a compelling picture.
Digital Distribution & Personalized Solutions
As seen in any customer-driven business, growing assets under management requires more than great returns. It demands broadening the value propositions offered to investors by personalizing investment solutions to better match investor goals and timelines. Winning firms offer investors opportunities outside their prospects’ traditional asset classes, industries, and deal structures.
Savvy investors also have raised the bar for sales and service by expecting the same high-quality support and self-service reporting received in ecommerce.
How Investment Professionals use AI
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Find Insights 10x Faster with Coegil
Coegil helps finance companies transform their businesses overnight by providing the Data Science Operating System every data-driven team needs to harness the power of AI. Coegil helps investment firms build a rigorous, sustainable, and cost-effective approach to data and analytics.
Coegil delivers a first-class, end-to-end platform that financial firms use to create adaptive systems that are customized to their unique business needs and able to adapt to shifting market conditions.
Centralized Deal Rooms & Compliance
Securely organize spreadsheets, documents, and databases in a single data lake with built-in compliance. Easily create datarooms to collaborate with your clients or create secure sandboxes for hybrid investment teams.
Oversee and maintain governance with built-in reporting detailing user activity and data and model usage. Coegil provides transparent understanding of analytics development and operations for internal compliance officers and regulators.
3rd-Party System Integration
Leverage your investment in 3rd-party systems such as client relationship management systems (CRMs), deal tracking systems, and order management systems (OMSs) by automatically ingesting data into Coegil for analysis and machine learning efforts. When ready, deposit your AI results back into existing applications to avoid disrupting your teams, adding new applications to an already crowded screen, or increase their training load.
Data Integration & Automation
Use our flexible, ready-made tools to ingest data from hundreds of data providers to enrich your analysis. Coegil makes it easy to automate repetitive data, analytical, and modeling processes.
Seamlessly document your best investment thinking, enhance it with machine learning, and automate signal generation that is both transparent and intuitive to risk management. Coegil provides built-in monitoring and reporting to verify AI performance and troubleshooting.
Use automated AI services to develop personalized offerings and recommendations, identify new opportunities, reduce churn, and forecast with confidence using the same cutting-edge techniques employed by Amazon, Meta, and Tesla.
Trusted AI Partner
Private equity and investment management firms are unlocking the benefits of a holistic AI strategy with Coegil to establish a solid framework to deliver clear, actionable, and trusted investment outcomes.