How AI is Revolutionizing Valuation in Private Capital Markets – The Rising Demand for Accurate Valuations 

In today’s rapidly evolving private capital markets, accurate valuations are more critical than ever. Factors such as the rise of evergreen funds and the growing participation of retail investors are driving this shift. These trends demand frequent, precise valuations that guide investment decisions, shape fundraising strategies, and build investor trust. 

As portfolios become increasingly complex and dynamic, fund managers are under pressure to deliver faster insights with greater transparency. Meeting these demands requires innovative solutions that enhance both speed and accuracy — and this is where AI-powered technology is transforming the landscape. 

Why Accurate Valuations Matter 

Valuations are far more than just numbers; they are the foundation of investor trust and informed decision-making. Whether institutional or retail, investors expect reliable valuations that fairly reflect asset performance. Transparent, data-driven insights allow investors to make strategic decisions confidently, ensuring portfolios are managed with precision rather than outdated data. 

The push for more frequent and transparent reporting — particularly in response to retail investor expectations — is fundamentally reshaping valuation practices in private capital. 

AI-Driven Solutions: Transforming Data Extraction 

73 Strings are revolutionizing how valuations are performed. Traditional methods of data collection are time-consuming and prone to error. By automating data extraction directly from financial reports, contracts, and other sources, AI platforms deliver up to 99% accuracy. This automation minimizes human error, ensuring valuations are grounded in reliable data. 

AI further streamlines middle-office operations, reducing manual effort and accelerating valuation processes — often completing them 10x faster than traditional methods. This efficiency empowers fund managers to focus on strategic decisions rather than manual data handling. 

Meeting the Demand for More Frequent Valuations 

The shift to evergreen fund models and the rising influence of retail investors has intensified the need for more frequent valuation updates. These flexible fund structures require accurate, real-time insights to manage inflows, outflows, and net asset value (NAV) calculations. 

AI-powered platforms enable fund managers to deliver valuations at a much higher frequency — whether monthly or even more frequently. This capability is essential to keeping pace with investor expectations, ensuring fund managers maintain liquidity while offering timely, transparent insights. 

Building Investor Confidence Through Technology 

Increased scrutiny from regulators — particularly with the influx of retail investors — places additional pressure on fund managers to maintain audit-ready accuracy. AI solutions play a crucial role by creating clear audit trails for every valuation, ensuring firms meet regulatory requirements with confidence. 

By automating valuation processes and improving data transparency, AI helps fund managers mitigate legal risks and reinforce their reputation as reliable, investor-focused entities. 

Reducing Operational Complexity 

The adoption of AI also addresses key operational challenges faced by private equity firms. Managing complex portfolios often leads to discrepancies in valuation methodologies, but AI-driven platforms standardize processes across all asset classes, ensuring consistent and accurate results. 

By reducing the manual workload, AI streamlines workflows and accelerates valuation cycles – allowing firms to scale their operations without compromising on precision or transparency. 

The Future of AI in Private Capital Markets 

As private capital markets continue to evolve, 73 Strings is empowering fund managers to navigate this increasingly complex environment with confidence. By combining automation, data extraction accuracy, and enhanced reporting capabilities, these technologies position firms to meet investor expectations and drive strategic growth. 

For fund managers looking to thrive in this dynamic landscape, AI is no longer just an option – it’s essential. By embracing AI-powered solutions, firms can deliver fast, accurate, and transparent valuations that build trust, support investor confidence, and unlock new growth opportunities.