A game-changer for fund managers and Alter Domus: The benefits of AI and machine learning

Although early adopters are seeing the benefits of integrating artificial intelligence and machine learning into their fund management workflows, the game-changing potential of the tools remains largely untapped in private credit — but probably not for long, according to experts who spoke recently with PDI for their recently published “Future of Private Debt” report.

The group included Davendra Patel, Head of Automation and AI at Alter Domus.

The sector is gradually embracing AI and machine learning for good reason: the technology can help with investment strategy and back- and middle-office functions alike, everything from deal sourcing and due diligence to investor and ESG reporting.

One of AI’s strengths is its ability to discern patterns from thousands of data points, and to do it in a fraction of the time it would take a team of people to do it, and without the risk of human bias. Of course, it takes human judgment to draw a final, well-considered decision out of the data, but AI can improve the confidence around it.

Alter Domus spent four years creating its own AI systems, including a proprietary version of ChatGPT. According to Patel, the company’s in-house capabilities, which have been deployed across Alter Domus’ entire business, help clients simplify and automate complex processes.

Among other things, Alter Domus automation reads emails, removes attachments, and automatically classifies, extracts, and summarizes the information. Clients have access to real time insights — something investors have been clamoring for. What’s more, Alter Domus’ proprietary tools mitigate the security risks often associated with off-the-shelf digital solutions.

Read the full report.