Member Article

NORTHEDGE HARNESSES AI TECHNOLOGY TO BOOST INVESTMENT

NorthEdge Capital has teamed up with artificial intelligence (AI) firm, Peak, to develop a first-of-its-kind platform set to revolutionise deal origination in the private equity sector through the power of AI.

Having identified a gap in the market for a more automated process to sourcing off market investments, NorthEdge approached Peak to find a solution.

Using Peak’s AI System with machine learning and deep learning technologies – both of which are forms of AI – the partnership will see NorthEdge quickly and efficiently identify new investment opportunities.

This partnership and future-focused approach will be driven by the data collected on the system and the bespoke algorithms developed with Peak’s world class data science team. The NorthEdge team aims to improve its deal origination rate, while significantly reducing time spent on desk-based manual research, freeing up capacity to spend with existing portfolio companies in the North of England and Midland regions.

Ray Stenton, partner and head of new business at NorthEdge Capital, added:

“We believe that artificial intelligence and machine learning are set to revolutionise deal origination, not only at NorthEdge but the entire sector. By working on this project with Peak, we are staying one step ahead of the curve, building a stronger picture of the investment market.”

“The new AI-powered platform will give us access to more data to make better decisions, leading to a better outcome for both NorthEdge and our investors.”

Peak’s AI System is a central system dedicated to AI and machine learning, developed to deal with huge volumes of data from multiple sources at incredible speed. Putting AI at the heart of a business without disruption, the AI System is powered by machine learning algorithms that continuously learn and get smarter over time, unbiased and error-free.

Richard Potter, co-founder and CEO of Peak, said:

“There are so many facts to validate that AI-powered businesses are excelling away from the pack, and the use of AI for deal origination at NorthEdge is an extremely exciting example of that.

“The results we have seen to-date have the potential to transform the private equity industry as we know it and we’re looking forward to watching this develop in the coming months.”

NorthEdge has been one of the most prolific private equity investors in the North of England in recent years and has had a busy 2018, investing £75m to date as well as raising its £120m SME Fund I to invest alongside its main Fund of £315m.

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