Private Equity Returns and Artificial Intelligence

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According to research studies, private equity professionals struggle to accurately forecast private equity returns when they are exposed to the details of the transaction. Can AI help? In an intriguing study, private equity professionals were asked to forecast returns on a deal they were working closely on, detailing the steps that would ensure success. At the same time, they were asked to forecast outside deals which they only evaluated superficially. On average, they projected a return on their own deals that was 50% higher than the outside ones, despite all of the deals having very similar characteristics. Click on the link below to learn more. https://www.asimplemodel.com/insights/challenges-forecasting-private-equity-returns

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