AI Agent Private Equity

Thesis: Healthcare IT platform serving 2,400+ clinics across North America. Fragmented market with 3 bolt-on acquisition targets identified. 100-day plan: consolidate 3 prior acquisitions onto unified SaaS platform, migrate remaining on-prem clients (38% of base), and expand APAC sales channel. Value creation levers: SaaS migration lifts gross margin from 62% to 78%, cross-sell analytics module to existing base, and bolt-on M&A at 5-6x EBITDA (vs platform at 7.2x). Exit target: 3.0x MOIC at 10x EBITDA exit multiple in Year 5.

Thesis: Mid-market logistics company acquired at $180M (6.5x EBITDA). Implemented AI-powered route optimization reducing fuel costs by 18% and improving delivery times by 23%. Completed 2 bolt-on acquisitions of regional competitors at 4-5x EBITDA, expanding geographic footprint from 12 to 28 states. Revenue grew from $95M to $135M (+42%). EBITDA margin expanded from 14.6% to 19.1% through operational improvements. Current valuation: $320M (2.8x MOIC). Exit strategy: Dual-track process -- strategic sale to PE or logistics conglomerate, with IPO as fallback. Targeting H2 2026.

Summary: Enterprise data management platform acquired in 2020 for $120M. Over 4 years: hired new CRO to rebuild go-to-market, launched 3 new product modules (data catalog, lineage, governance), expanded from 45 to 180 enterprise clients. ARR grew from $18M to $52M (3x). Net retention rate improved from 108% to 132%. Sold to strategic buyer (large enterprise software company) for $380M. Final returns: 3.2x MOIC, 38% net IRR. Fund IV DPI contribution: 0.4x. Key lesson: Product-led growth in sticky enterprise SaaS generates strong recurring revenue multiples at exit.