30 Aug 2025 5 min read AI

Harnessing AI in Private Equity: How John Martin and Plutus Consulting Group see 2025 as a transformational year for dealmaking

In the evolving landscape of private equity, artificial intelligence (AI) has moved beyond hype to become a vital tool shaping dealmaking, portfolio management, and value creation. John Martin, founder and CEO of Plutus Consulting Group, a leading advisory and consulting firm specialising in financial technology and private equity innovation, explains why 2025 marks a transformational milestone—not just for adopting AI, but for managing the balance of opportunity and risk that it brings.

From Months to Minutes: AI as a Deal Accelerator

“Traditional due diligence and deal sourcing processes can span weeks or months,” John observes. “Now, with AI-driven analytics and natural language processing platforms, hundreds of thousands of data points, from financials to social media sentiment, can be scanned in minutes.”

AI’s ability to surface granular insights disrupts how PE firms identify acquisition targets and evaluate risks. John cites leading firms like General Atlantic and Blackstone, which have embedded AI into underwriting and contract review to spot risks earlier and speed deal approval cycles.

“This isn’t about replacing human judgment,” he clarifies. “It’s about augmenting decision-making, so teams focus on strategic nuance rather than data aggregation.”

Real-World Impact: Case Studies illustrating AI’s Value

John points to several examples capturing how AI creates tangible value:

General Atlantic’s AI-enhanced committees detect early indicators of industry shifts to target high-growth sectors proactively.
Blackstone’s AI contract review suite compresses legal diligence timelines from weeks to days.
Summit Equity Partners’ multi-million-dollar backing of NeuroEdge AI underscores how PE firms simultaneously invest in and leverage AI innovation for predictive analytics.
Paris-based Jolt Capital uses AI to refine deal flow in competitive tech markets.
Global consultancy Bain & Company harnesses generative AI to identify revenue synergy opportunities, sharpening deal ROI projections.

“These examples reflect AI’s reach across the deal lifecycle,” John notes. “From sourcing to exit strategy, firms embracing AI strategically are outperforming peers.”

The Risk Equation: Guarding against AI Blind Spots

John urges caution. “AI is not infallible. It requires rigorous governance: oversight on data quality, bias detection, and continuous validation.” He flags emerging risks around ‘Black box’ models where decision rationales are opaque, posing transparency issues for investors and regulators alike.

“Balancing AI innovation with accountability builds investor confidence,” John says. “Firms must align AI outputs with human expertise to avoid costly missteps.”

Embedding AI within Portfolio Companies

Beyond the fund level, portfolio companies can gain competitive advantage by adopting AI. Companies integrating AI talent and governing its use carefully can accelerate digital transformation, optimise costs, and tilt the value creation curve.

“Private equity isn’t just deploying capital. It’s partnering on technology-led innovation enabling scalable growth,” John explains.

Navigating an increasingly complex Regulatory Landscape

John Martin also emphasises that 2025 is not only a year of technological transformation but one marked by rapidly evolving regulatory expectations. “Private equity firms must prepare for a wave of new regulations that will reshape how they operate, report, and manage risk,” he warns.

Regulators globally, including the SEC in the United States and the FCA in the UK, are intensifying their focus on private capital markets. Key areas of expected regulatory enhancements include:

Increased Transparency and Reporting: More frequent and detailed disclosures on fees, expenses, performance metrics, and ESG factors will become mandatory.
Stricter Governance and Conflict-of-Interest Rules: Enhanced requirements to disclose and manage conflicts, especially around complex deal structures such as GP-led secondaries and continuation vehicles, are on the horizon.
Upcoming UK Tax Changes: From April 2025, the UK increased the capital gains tax rate on carried interest to 32%, with further carried interest reforms planned for April 2026 that will tax carried interest as deemed trading income, significantly impacting PE fund managers.
Regulatory Framework Revisions: The UK’s HM Treasury and FCA are consulting on changes to Alternative Investment Fund Managers (AIFM) regulations aiming to simplify and tailor compliance requirements, with new thresholds based on net asset value rather than AUM expected by 2026. This will affect how PE firms are classified and regulated across different fund sizes and strategies.
Data Privacy and Cybersecurity Compliance: Stricter standards around data protection, especially as AI and digital tools integrate more deeply with investment processes.
Sustainability and ESG Regulation: Heightened expectations for robust ESG integration and transparent impact reporting.
Third-Party Vendor and AI Risk Oversight: Increased scrutiny on AI tool vendors and service providers to ensure operational resilience and market integrity.

John notes, “Regulation isn’t just a hurdle—it’s an opportunity to build trust and resilience in a complex market. Firms that proactively upgrade compliance frameworks alongside AI adoption will gain a competitive advantage.”

He advises private equity managers to partner closely with specialists like Plutus Consulting Group to navigate these changes confidently. “Understanding emerging rules and embedding them into technology and governance strategies is critical. It ensures sustainable growth and protects investors’ interests in the long term.”

Looking Ahead: AI as a Strategic Imperative for 2025 and beyond

John Martin concludes by stressing AI’s role as a defining competitive frontier: “In 2025, firms that master AI integration—not just as a tool but as a mindset—will lead private equity’s evolution. They’ll unlock new alpha and drive resilience in uncertain markets.”

His advice to PE leaders: “Invest in AI literacy, talent, and governance frameworks now. The cost of delay is not just a lost opportunity but playing catch-up in a landscape accelerating at AI speed.”

As private equity enters uncharted territory, the winners will be those who listen carefully to market signals, learn from emerging technology trends, and lead with strategic conviction.

Connect with John Martin and the Plutus team to discuss solutions shaped by deep experience, attentive consultation, and a commitment to driving the industry forward.

Together, let’s listen, learn, and lead the next wave of private equity innovation.

About John Martin and Plutus Consulting Group
John Martin is founder and CEO of Plutus Consulting Group, a specialist advisory and consulting firm driving technology-led growth and innovation in private equity and alternative investments. With over 30 years of fintech and PE expertise, John helps investors harness transformative technologies like AI, while managing regulatory and operational risks for sustainable competitive advantage.

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