Sushant Kataria, Vice President, Strategy & Product Management, Kyle Morris, Vice President, Sales, and , Apurva Pandey, Founder & CEO
Executing this strategy, however, is a long and arduous process.
Data with the PE firm and coming from Portfolio companies are often fragmented. This requires an army of data analysts to spend countless hours analysing data, sifting through reams of spreadsheets and financial statements, and attending endless meetings to support decision making. They also need to clean and consolidate information before it can be reported to investors who are demanding increased transparency into their investment performances.
That is where Brownloop can help with a revolutionary approach to decision-making using data and AI. The technology and data-driven company helps PE firms automate their data collection, harmonization, and reporting cycles and leverages AI for processes like deal-sourcing, due diligence, , portfolio monitoring, and risk assessment. All these result in greater transparency and faster access to information to both GPs and Investors
“We have drastically reduced process cycle times for PE firms, bringing what used to take 90 days down to just two weeks. This has proved to be a game-changer for the industry, struggling with slow and inefficient processes,” says Apurva Pandey, founder and CEO of Brownloop.
Developing a Data-Driven Value-Creation Plan
Brownloop covers the entire spectrum of the investment lifecycle, right from due diligence to post-investment monitoring. With the help of external data providers and AI models, it helps PEs to find the right deals in the market and filter down effective deals and source promising investment opportunities.
For investors who demand more scrutiny on investing in sustainable investments, these systems also enable collection of environmental, social, diversity, and inclusion parameters from portfolio companies. This information is put back into the data plane, supporting ESG reporting and DE&I reporting.
Brownloop also specializes in optimizing processes for PE firms. The reporting, data collection, and valuation processes need to go through several approval cycles, making workflow management crucial. Brownloop helps PE firms streamline these processes, ensuring that data is collected, approved, and reported in the right quality and form.
A Streamlined Approach that Breeds Success
Brownloop has helped numerous PE firms optimize their processes, streamline operations, and achieve better results.
An example of Brownloop’s success is the impact they have made on portfolio monitoring. Before partnering with Brownloop, many clients used spreadsheets to capture and maintain data from portfolio companies. This method had a low frequency of data collection, with firms typically collecting data every month or quarter. This resulted in a large army of data analytics and scientists having to manually sift through numerous reports.
The reporting layer was also spreadsheet-based, which proved to be a significant bottleneck for firms, particularly when there was a demand for data transparency and speed of reporting. This is where Brownloop’s strategy changed the status quo, automating the entire data collection, harmonization, cleanup, and reporting cycles for these companies.
With Brownloop’s technology solutions, firms are now able to get deeper insights into portfolio operations and faster. This reduction in process cycle times is a massive win for internal management and investors, allowing for better and more timely decision-making.
Scripting the AI Transformation in Private Equity
There is a greater emphasis on innovation in the PE space, and Brownloop’s ambition is to take this forward. The company is exploring newer ways of processing and analyzing data, including leveraging large language and GPT models.
Brownloop is, in fact, collaborating with PE firms to use generative pre-trained transformer (GPT) models. AI is opening up a completely new dimension to how PE firms will leverage data to drive decision making. These models will touch and transform every aspect of the private equity investmentlifecycle like deal sourcing, investor relations, portfolio monitoring and due diligence. With the help of AI, investors can get a clear and transparent analysisof how their investments are exposed to financial and geopolitical risks. This includes predicting and simulating risks associated with economic and financial events in an uncertain business environment.
Data and AI are going to be the game changer in how Private Equity investments are made and managed. They will open up a completely new dimension of how firms will leverage data and automate processes and build their value creation playbooks
According to a report by PwC, only three percent of PE firms have created an AI use case. The number is expected to grow 30 to 40 percent in the next two years, presenting a massive opportunity for Brownloop to become a leader in this space.
Brownloop is driving innovation in PE and creating new opportunities for investors by leveraging technology and data. The use of AI and data is helping PE firms make informed investment decisions that are based on accurate and up-to-date information. This, in turn, helps investors achieve their financial goals and maximize returns.