Artificial Intelligence Is Giving Private Equity a New Headache
Australian Financial Review
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Details
- Date Published
- 13 July 2025
- Priority Score
- 2
- Australian
- Yes
- Created
- 14 July 2025, 01:15 pm
Description
The local boss of US private equity group Riverside Company says a kid can use AI to replicate a company’s software in hours. That’s a big new risk to price in.
Summary
The article explores how artificial intelligence (AI) is posing a new challenge for private equity firms, as highlighted by Simon Feiglin, the managing partner of Riverside Company's Australian office. The ability of AI to quickly replicate company software presents a unique risk that could significantly impact valuations, making it harder for investors to predict the future worth of businesses. This development emphasizes the broader implications of AI in market dynamics and investment strategies. While it does not directly address existential AI risks, it highlights emerging concerns related to AI's influence on business continuity and market valuation, which could be relevant to discussions about AI governance and economic stability.
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CompaniesChanticleerPrint articleUpdatedJul 14, 2025 – 1.17pm,first published at12.05pmSaveLog inorSubscribeto save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber?LoginThe task of a private equity investor is to try to answer a deceptively simple question: What’s this business going to be worth in five years?That’s hard enough at the best of times. Simon Feiglin, managing partner of Riverside Company’s Australian office, says artificial intelligence is about to make that even more difficult.Loading...James Thomsonis senior Chanticleer columnist based in Melbourne. He was the Companies editor and editor of BRW Magazine.Connect withJamesonTwitter.EmailJamesatj.thomson@afr.comSaveLog inorSubscribeto save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber?LoginLicense articleFollow the topics, people and companies that matter to you.Find out moreRead MoreChanticleerOpinionPrivate equityHealthcareMergers & acquisitionsFetching latest articlesWhat lurks beneath the stand-off over Sydney’s $750m new fish marketPrimrose RiordanWhy these Australian wines are at risk of extinctionHow much to tip? And other restaurant conundrums to chew onAt the end of a meeting, this CEO asks the same question. Here’s whySally Patten and Mandy CoolenHow the AFL’s introverted CEO will win over NSW and QueenslandHere’s what a top-50 CEO looks likeWill this ring help you be an ultra human?John DavidsonHow Australian whisky is finally coming of ageAt last, Mercedes’ long-promised electric supercar is (almost) herePerichs’ dairy giant hands on Vic farm to Qld egg producerNick LenaghanTreasury’s charity tax plan splits wealthy familiesInvestor son of secretive mining heiress comes back into the fold