Bateo Insights

One of the distinguishing characteristics of private equity direct investing or PE “directs”, as opposed to limited partner investing in a private equity blind pool fund, is the ability of LP investors to evaluate individual acquisition opportunities before committing capital. Rather than allocating capital in advance to a portfolio of future investments, direct investors can assess the specific company, industry, financial performance, management team, transaction structure

Artificial intelligence can create value in ways that extend beyond improving operational efficiency. As businesses increasingly develop proprietary AI applications and integrate them with their own data, these capabilities often become valuable intellectual property in their own right. Much like customer databases, proprietary software or patents, internally developed AI systems can represent assets that contribute to a company's overall value. According to McKinsey's 2025 G

One term frequently discussed in private equity is "dry powder." Dry powder generally refers to capital that passive, limited partner investors have committed to a private equity fund, but that has not yet been used and invested into acquisitions. As blind pool private equity funds under management have grown over the years, so too has the amount of uninvested dry powder capital available for future transactions tied-up in such funds. If LP investors are going to commit cap

Investing in private equity “directs” involves a broad range of participants across private capital markets. While family offices are among the most active investors in direct transactions, the market also includes independent sponsors, search funds, entrepreneurship-through-acquisition (ETA) sponsors, as well as blind pool private equity funds on certain syndicated deals. Each participant may have a different investment objective and transaction structure; however, they shar

Family offices have become increasingly active participants in private equity "direct" investing. Unlike traditional blind pool funds, direct private equity investments allow investors to evaluate specific acquisition opportunities before deciding whether to participate. For many family offices, this approach can provide greater visibility into the underlying business, investment thesis and transaction structure. According to recent industry reports, 70% of family offices are

Private equity as an asset class has evolved significantly over the last several decades. Historically, private business investing often occurred through corporate strategics, investment partnerships and wealthy individuals investing directly into privately held businesses on a transaction-by-transaction basis. Over time, however, private equity became increasingly institutionalized through the rise of blind pool investment funds, which today dominate much of the industry. Mo

In the context of corporate acquisitions, as you can imagine, artificial intelligence does not increase an exit multiple simply because a company says it uses AI. What increases an exit multiple is clear financial causality and defensible strategic differentiation. For corporate sellers, it’s important not to merely mention the use of AI in a CIM or management presentation, but rather, how a company’s use of artificial intelligence improves enterprise value. For example: • re

Although artificial intelligence and machine learning date back to the 1950s, we’re in the industry’s infancy with respect to mainstream adoption, whether consumer or enterprise. Nevertheless, we’re already seeing how the use of AI applications in a company’s business affects its price and valuation for corporate acquisition or other purposes, whether a family-owned business, a corporate strategic divesting a business line, or a private equity sponsor selling a portfolio com

Introduction There’s not a tech headline these days that doesn’t mention artificial intelligence or that jobs are in danger of being replaced by robots layered with AI. The current AI boom is reminiscent of the late ’90s internet craze, you almost can’t go anywhere without bumping into the founder of an AI startup. Much of it can be somewhat overwhelming at times; however, when business figures such as Elon Musk, Sundar Pichai, Larry Ellison, Robert Smith and Steve Schwar