To de-risk exits in a tough market, Advent speaks with potential strategic acquirers during initial underwriting. They ask why these buyers aren't interested now and what would need to change for them to be interested later, bringing this direct feedback to the investment committee.
Advent's investment committee uses an AI tool trained on all historical memos and meeting questions. The AI highlights inconsistencies between deals, such as different interest rate assumptions, and tracks how a deal's thesis has evolved, enhancing governance and decision-making.
While many large PE firms diversify into multiple asset classes and go public, Advent International maintains GP/LP alignment by remaining a private partnership focused solely on private equity. They believe this simple, focused model is increasingly rare and valued by investors.
To avoid stagnation, Advent empowers its deal-making units, which it calls "SEAL teams," to be entrepreneurial voyagers. These teams are encouraged to explore and uncover new, promising subsectors, with an organizational culture that accepts mistakes as a necessary part of finding the next source of alpha.