The $13K Company Backlog: Private Equity's Capital Return Crisis in 2025
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S1 E16

The $13K Company Backlog: Private Equity's Capital Return Crisis in 2025

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Now, this is a quick post

about private equity and the

challenges that those companies face at the moment.

Now, I saw a news article this morning,

which is the 13 ,000 company backlog

redefining success in private equity.

Now, in the article, they talk about the

biggest challenge in 2026 isn't raising money or

finding deals, it's returning capital. Now,

some of the reason for that is, is

private equity firms buying at the top of

the sort of bubble and top of the

wave and then trying to monetize

those returns that are making money.

Now, a lot of the stuff going on

at the moment in the in the world,

obviously, is AI and how to leverage AI

and the key for a private in private

equity firms.

It's a mouthful from Monday morning is, of

course, being able to leverage the data, leverage

the information that they have inside of these

companies to increase the value of those companies

for any potential buyer. Now,

AI is an obvious way to be able

to leverage that.

But going back to a post that I

made on LinkedIn this morning,

to be able to do that, you also

have to have your data in good order

and good standing so that you can leverage it properly.

What do I mean by that?

Well, a lot of private equity firms

have small backroom staff, they may not leverage

the infrastructure, the compute and the data and

the knowledge that they have as they should,

or, you know, not not to its fullest ability.

And so in doing that, they're leaving a

lot of money on the table that could

otherwise be used, you know, in terms of company value.

And so, you know, what can you do

inside of your organization?

This isn't just private equity, it just happens

to be a topic that's swung

by my desk today.

You know, what can you do internally at

your organization to better monetize the data that

you have in hand?

You don't have to go and find loads

more data, but you do have to be

able to trust the data that you have.

And you do want to be able to

use that data to be able to provide

as much insight as possible.

And it doesn't, of course, have to be

AI driven for not for a second, like,

you know, in terms of dashboard analytics and

things that you want to be able to

deliver to your customers.

AI just happens to be a trendy byproduct

of all of that at the moment.

If your data does not make sense, neither

will the output that's coming from your dashboards

or your LLM.

So bear that in mind, what can you

do better inside of your organization to leverage

that data to the most, the best of

its capability to deliver the most revenue for your business?

That's all for today.

Thank you for joining the AI briefing.

My name is Tom.

I'll be back tomorrow with some more insight and knowledge.

Goodbye for now.


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