Private Equity | AQM², Ltd.

Introduction

When it comes to private equity and venture capital (“PE/VC”) investing, which is characterized by information asymmetry and a lack of factors that can be formularized, there seems little doubt that humans will remain the primary decision-makers. Even so, the current approach leaves much to be desired with respect. to efficiency and transparency.

To address the shortcomings, AQM² employs a proprietary strategy designed to optimize the process by breaking it down into three stages: Sensing, Seizing, and Securing.

Utilizing AI and big-data analytics to analyze each stage, AQM²’s technology helps identify potential synergies and opportunities than can prove beneficial to PE/VC investors and acquisition targets alike.

Background

Comprised of a tight circle of investors and intermediaries, the PE/VC space is fairly opaque, making it difficult for outsiders to secure critical and relevant data in a timely fashion. By the same token, it is not easy for prospective targets to identify investors best-suited to their needs and objectives.

This lack of transparency engenders a supply-and-demand mismatch that leads to inefficiency and opportunity losses across the PE/VC ecosystem.

But today’s advanced technologies offer a solution. Founded on the belief that the key to successful PE/VC investing lies in the timely acquisition and analysis of decision-making information, AQM²’s AI is designed with this objective in mind.

Sensing

It is not hard to see the upside potential of efficient PE/VC investing. By automating the sourcing of potential acquisition targets and identifying promising businesses based on trends deduced from AI-driven natural language and image analyses, AQM² makes it possible for investors to cast a wider net and tap a significantly larger pool of viable candidates.

What is more, the combination of AQM²’s AI with a framework known as “Capability-Based Investment” enables a holistic assessment of the opportunity set across operational, financial and strategic dimensions. Businesses can be evaluated regarding their ability to generate value on a sustainable basis, rather than near-term cash flow and other traditional acquisition metrics alone.

Seizing

AQM²’s technology also helps mitigate the risks stemming from inefficient financial reporting and management opacity at portfolio companies. Through constant monitoring of AI-derived KPIs, adverse developments can be addressed and acted upon sooner rather than later, helping to minimize the prospect of events getting out of hand.

By teaming up with PE/VC investors that have deep expertise in both business and investing, AQM² can facilitate enhanced engagement between portfolio managers and company managements that accelerates value creation while also reducing the costs of communication for all involved.

Securing

In the PE/VC world, the exit is typically the event both investors and portfolio companies look forward to with great anticipation. That said, the process has historically not been as productive as it could be, constrained by human information-processing limitations, myopic industry perspectives, and other challenges associated with business matchmaking.

At AQM², capital market data and company capabilities are analyzed and evaluated using a unique combination of AI and the human factor, allowing for the most suitable candidates to be selected from among a diverse universe of prospective business and financial partners.

This process is further enhanced by ratings regarding prospects for sustainably generating social value following an exit.