Private Equity Turns to Big Data to Find Deals

By Anonymous

High-tech analysis is helping investors decide what to buy—and how much to pay

Private-equity firms have long relied on human connections to find deals, sending partners to meet thousands of executives every year and turning to their professional networks for investment ideas.

But they’re increasingly applying data science and algorithms to drive their investments. They’re using software to scrutinize companies’ strengths and weaknesses to spot potential investments. They’re deciding what to pay for businesses by analyzing their past bids. And they’re looking to use programs to figure out how companies...