AI-Driven Transformation Divides PE Returns... The New Value Creation Formula From Global Giants [2026 Alternative Investment Forum]

Sebastian Lorenz, Head of EQT Digital Asia-Pacific
"AI Is the Crucial Variable Determining Investment Decisions"

Sebastian Lorentz, Head of Digital at EQT Partners, is giving a lecture on "The Direction of PE Investment in the AI Era" at the 4th Asia Business Daily Alternative Investment Forum held on September 29 at Conrad Hotel in Yeouido, Seoul. 2026.9.29. Photo by Jinhyung Kang

With the advent of artificial intelligence (AI), private equity fund (PEF) managers are changing their approach to investment decisions. AI is now serving as a key tool for distinguishing between good and bad investments in the due diligence phase, and after investment, it has become a practical instrument for enhancing corporate value.

On September 29, Sebastian Lorenz, Head of Digital Asia-Pacific at EQT, emphasized that the role of PE in the AI era goes far beyond simply being a source of capital. He explained that firms are transforming into operating partners that drive digital transformation and AI-based value creation for their portfolio companies. This is why EQT, a PEF management company affiliated with Sweden’s Wallenberg family, has built the EQT Digital team, which includes data scientists and cybersecurity experts. EQT Digital is involved throughout the investment cycle, from investment due diligence and enhancing enterprise value after acquisition, to building AI solutions and optimizing technology procurement.

Lorenz explained that, during the investment evaluation stage, AI is now the standard for separating good deals from bad ones. During due diligence, they assess how the target company will be affected by AI, whether the existing value chain faces disruption, and to what extent AI can be leveraged for cost reduction and revenue growth. He stated, "AI is no longer a supplementary task to be considered after an acquisition; it is now a core variable that determines the bid price and investment confidence."

After an acquisition, AI becomes a tool for executing value creation. AI is embedded into existing work processes to increase productivity and revenue. Lorenz emphasized, "Every deal and PE manager goes through the stages of sourcing, due diligence, ownership, and exit. I spend about two-thirds of my time in the ownership stage, working with portfolio companies and helping them with their digital and AI transformation journeys."

He also presented concrete examples. IVC, which operates thousands of veterinary hospitals across Europe, was cited as a representative case. Lorenz said, "This company faced major challenges with schedule management, such as missed appointments and the allocation of doctors and staff. We helped them introduce an algorithm that considered all data—including even the weather—to operate the veterinary hospitals, which resulted in improved sales." As for a Korean example, he mentioned major investment company Douzone Bizon, where AI was introduced into its enterprise resource planning (ERP) platform to boost productivity. 

He stressed that while value creation in PE used to focus on financial structure, cost efficiency, and corporate governance improvement, in the AI era, it also encompasses digital capabilities, data, work automation, and the ability to utilize AI agents. Lorenz advised, "When there is anticipation, knowledge, and an appropriate framework in place, the wheels of AI begin to turn. The mixture of anxiety and excitement within a portfolio becomes a positive driving force, and this will make a significant difference in PE returns."

This content was produced with the assistance of AI translation services.