As private capital markets evolve, the pressure to modernize is mounting—and artificial intelligence is at the center of that transformation. Allvue Systems CEO Marc Scheipe discusses the accelerating pace of AI adoption across the alternatives industry. He explains how firms are moving away from fragmented systems and static valuation models toward real-time, AI-powered platforms that drive efficiency, transparency, and regulatory readiness. 

Scheipe also details the biggest barriers to adoption, how LP expectations are reshaping reporting, and what emerging technologies—like agentic AI and predictive analytics—will fundamentally change the way private equity and credit managers operate over the next three to five years.  

CN: What specific factors are driving this sudden acceleration of AI adoption after years of technological hesitance in the alternatives space? 

MS: Alternative investment firms have long grappled with fragmented systems and siloed data, which introduce inefficiencies and a lack of insight across operations. As the macroeconomic environment remains volatile, cost pressures intensify, and investor expectations grow, especially around transparency and responsiveness, firms are being pushed to modernize.  

According to our 2025 GP Outlook survey, 88% of firms now identify data and analytics as top priority, and over half say AI could be a key competitive differentiator. We’re also seeing mounting pressure from LPs for greater transparency, and from regulators for more robust data management.  

In the U.S., even though the SEC’s Private Fund Advisor rules were overturned by the Court of Appeals, the agency continues to emphasize enhanced private fund reporting to monitor systemic risk, especially as private markets expand into vehicles like retirement accounts. In EMEA, the AIFMD requires managers to report detailed exposures, concentrations, and risk profiles, with ESMA setting clear standards for compliance.  

Allvue has been working to address these challenges for years, helping clients connect workflows and unify data. As the industry shifts toward more interoperable, intelligent platforms, we’re well-positioned to support that evolution with integrated solutions, open architecture, and AI-driven tools. 

CM: How are advanced machine learning models fundamentally changing the way private equity firms approach portfolio valuations compared to traditional methods, and what tangible improvements are you seeing in accuracy? 

MS: Traditional portfolio valuation methods have long been reliant on periodic manual inputs and static models. With AI, we will eventually see a shift toward real-time valuation models that adjust automatically as new data becomes available, whether that’s deal comps, updated funding rounds, market shifts, or operational KPIs. This dynamic approach reduces human error, flags anomalies earlier, and brings a much higher degree of consistency across valuations. It’s not just about speed; it’s about trust in data.  

Firms using AI-enabled valuation tools will see meaningful reductions in variance between expected and realized performance. That’s a direct result of better forecasting and faster risk identification. Unlike public markets, where transparency and data availability support pricing efficiency, private capital is often fragmented and opaque. AI and trusted data sources present a path to bring greater consistency, comparability, and efficiency to how private assets are valued and understood, 

While this is all very forward-looking, we are still very early in the adoption curve.  GPs are still trying to figure out where and how to apply AI to make reporting more efficient and accurate for their LPs. LPs want more timely and accurate data, but for now most reporting is still done on quarterly cycles. 

CM: What are the primary barriers preventing firms from embracing technological transformation, and how is Allvue helping bridge this gap? 

MS: Our research shows that 29% of firms don’t know where to apply AI or what processes would benefit. Another 24% say the ROI isn’t clear, and 20% lack internal support. These aren’t just technical barriers; they’re strategic ones. At Allvue, we help firms move from uncertainty to action by offering purpose-built solutions tailored to the workflows of private capital managers. Our platforms integrate seamlessly with existing infrastructure, reducing the friction of implementation. And with embedded intelligence and pre-configured workflows, we lower the activation energy needed to adopt AI as a transformative technology. We work closely with our clients as partners on the same journey co-innovating around digital transformation, AI adoption, and workflow efficiency so our roadmap stays aligned with their goals and delivers measurable impact. 

CM: As firms modernize their tech stacks, what outdated systems are being prioritized for replacement first, and which technologies are proving most transformative for alternative investment operations? 

MS: At Allvue, we’ve seen the first systems that are prioritized for upgrades, and future proofing tend to be those related to fund accounting, reporting, and investor communications, areas where spreadsheets and manual workarounds have long been tolerated. Our survey found that only 6% of firms are “very satisfied” with their current data management solutions, and 65% say they struggle with data accuracy and aggregation.  

Platforms like Allvue, which enable customers to unify accounting, portfolio management, and investor reporting, can be the most transformative for firms because they streamline operations and create a single source of truth.  We’re also seeing firms prioritize tools with open APIs, strong data management capabilities, and greater interoperability, enabling scalable, connected systems as their needs evolve. 

CM: How is AI helping firms navigate the increasing regulatory demands while maintaining operational efficiency, and what specific regulatory challenges are driving technology adoption? 

MS: AI can be an essential partner in compliance. From automating data validation to flagging anomalies in reporting and preparing audit-ready outputs, AI enables firms to proactively manage risk and meet growing regulatory scrutiny. In our GP Outlook survey, regulatory and compliance issues were a top priority while also identifying concerns around AI adoption to manage that function. This signals both the importance and the complexity of the space. As regulations around transparency, ESG, and valuation methodologies tighten, firms are turning to intelligent systems to produce audit-ready data on demand. AI can support real-time monitoring and alerting, reducing the burden on lean compliance teams while improving responsiveness to evolving regulatory expectations.  

CM: In what ways are investor communications and transparency expectations evolving, and how is technology reshaping the relationship between alternative investment managers and their investors? 

MS: LPs in typical drawdown funds are no longer content with quarterly PDFs and lagging data. They want real-time visibility into fund performance, exposures, and fees. Our survey found that GPs are placing increasing focus on investor communications as LP expectations shift toward a consumerized mindset when it comes to private market investing, and they expect instant access to current data. 

Technology is stepping in to meet this need: client portals, and customizable reporting dashboards fed with AI-driven insights have the capability to enable GPs to deliver personalized, timely updates to their investors. At Allvue, we’re seeing strong demand for our Investor Portal, which allows firms to streamline the distribution of information while enhancing transparency and engagement. The firms that invest in this now are building trust with their clients that translates into long-term capital commitments. 

CM: Beyond current implementations, what emerging technologies or AI applications do you see fundamentally changing how the alternatives market operates in the next 3–5 years? 

MS: In the next few years, agentic AI, the ability for AI systems to act autonomously across workflows, will redefine what operational leverage looks like. Imagine a scenario where AI can monitor your portfolio, generate investor reports, trigger compliance reviews, and notify you of anomalies, and surface peer comparisons or market benchmarks all without human prompting 

Additionally, as more firms consolidate disparate systems into unified data platforms, we’ll see the rise of predictive analytics not just for valuations, but for capital calls, LP behavior, and even regulatory audits. The firms embracing these shifts will operate faster, smarter, and with far greater agility in a rapidly evolving market.