AI portfolio optimization for private equity, from diligence to exit.
Private equity firms now face the AI question at every stage: what a target's AI claims are worth, where AI creates value across the companies they own, and what a buyer will believe at exit. SmartCurrent works with deal teams and operating partners on all three, with one senior operator and written judgment.
A portfolio-wide read of where AI creates value.
Most portfolios hold companies at very different stages with AI. Some have a plan and a team. Some have a vendor and a pilot. Some have nothing. The firm needs one consistent view of all of them.
SmartCurrent runs AI-readiness diagnostics across platform and add-on assets, asking the same questions of each company: where AI can change revenue, cost, or product, what the company can realistically execute, and which technology choices matter. The result is a ranked view of the portfolio and a value-creation plan for each company, tied to measurable operating gains: what to fund first, what to delay, and what to refuse.
Diligence on what the AI is worth.
Investment committees need to separate durable AI capability from packaging. SmartCurrent writes a focused memo on what is real, what depends on the next foundation-model release, and the questions the seller cannot evade.
Turn-times are typically one to two weeks from data-room access. Work product is suitable for IC and survives independent counsel review. More under Advisory.
Support for the people who own value creation.
Operating partners are asked to carry AI across many companies at once. SmartCurrent works alongside them and the portfolio CEOs: pressure-testing each company's plan, and aligning leadership teams through closed-door AI training.
Where a portfolio company needs senior AI leadership before a full-time hire, the work can continue as a fractional Chief AI Officer seat. Engagements are joint with management where possible, and never conducted around them.
An AI position a buyer's diligence will accept.
Buyers now run AI diligence of their own. The test applied on the way in applies on the way out: what is real, what is durable, and what is packaging. SmartCurrent reviews a company's AI position ahead of a sale so the claims in the book hold up.
An operator and investor, on the capital side of the table.
Judah Phillips has sold a company and invests in others. He co-founded, grew, and sold Squark AI to Market Holdings, where he is now Chief AI and Product Officer and leads AI across a portfolio of brands. He is a Partner at 10X Venture Partners, a Founding LP and Mentor at FoundersEdge, and a Limited Partner at RevUp. One of his angel investments, Machinery Partner, was acquired by Phoenix Tailings in 2026. His experience spans enterprise AI strategy and execution, M&A and investment diligence, and board and executive advisory.
- A staffed value-creation program or a transformation office.
- Implementation, staffing, or managed services.
- Vendor-aligned advice tied to a specific platform or stack.
- Public commentary on deals or portfolio companies.
What is AI portfolio optimization for private equity?
A consistent review of every company a firm owns, to find where AI can change revenue, cost, or product, what each company can realistically execute, and which bets to fund first. It gives the firm one ranked view of the portfolio in place of a separate AI story from each management team.
How does AI create value in a private equity portfolio?
In three places. At entry, by pricing a target's AI claims correctly. During the hold, by funding the few AI initiatives that change revenue, cost, or product and stopping the rest. At exit, by presenting an AI position that holds up under a buyer's diligence.
How fast can AI due diligence be done?
Diligence memos typically turn in one to two weeks from data-room access. The work product is suitable for investment committee and survives independent counsel review.
Does SmartCurrent work with operating partners or with portfolio company CEOs?
Both. The engagement is usually set up by the firm and run jointly with the operating partner and the portfolio company's leadership. It is never conducted around management.
Does SmartCurrent implement the AI plan?
No. SmartCurrent does not provide implementation, staffing, or managed services. The portfolio company's own team executes.
Is the work confidential?
Yes. All work is private and in writing. There is no client roster, no logos, no case studies, and no public commentary on engagements.
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