Good morning, Hubsters. MK Flynn here with the Wire. Chat GPT and all things generative AI have been top of mind for many this year. At PE Hub, we’ve been asking our sources for thoughts on how the new technology may transform dealmaking. Today, I’ve got an interview with John Stecher, the CTO of Blackstone, about the PE firm’s GenAI strategy and the new tool it’s building for Blackstone’s investment process. There’s a land grab going on in the music rights business. HarbourView picked up the rights to music from Rock and Roll Hall of Famers Christine McVie and Pat Benatar, and we’ll share the details. Another trend we’ve been following is the rise of the add-on. With home-run deals harder to hit in today’s market, PE firms have been playing a lot of small ball. We’ll take a look at Kian Capital’s plans for one of its portfolio companies. First up to bat, Blackstone.
Deeper insights
How are PE using Chat GPT and other generative AI tools throughout their dealmaking activities? It's a question PE Hub has asked many of our sources this year, as firms try to leverage the potential power of the new technology while balancing concerns about quality and security. For some answers, I turned to John Stecher, chief technology officer at Blackstone. Subscribers to the premium version of the Wire may read my interview. And for more on how dealmakers are exploring the technology, see PE Hub‘s recent coverage: • How Chat GPT, generative AI are beefing up PE deal sourcing • BC Partners brings generative AI into deal sourcing • BlueFlame launches generative AI platform for alternative assets industry Don’t stop thinking about tomorrow HarbourView Equity Partners has acquired the late Christine McVie’s share of Fleetwood Mac recorded music royalties, Iris Dorbian reports. The investment firm has also inked a deal to buy a share of Pat Benatar and Neil Giraldo's recorded music and publishing assets. To learn details of the deals and other rights HarbourView has secured, upgrade to the premium version of the Wire. Due to the sector's recession-resistant ability to provide stable and consistent cashflow in a rocky economy, investing in music royalties and copyrights has become a popular trend in private equity over the past few years. Earlier this year, Iris spoke to Lyric Capital, which had closed its second music royalty fund at $800 million, about this trend. Lyric Capital's holdings include hits recorded by a wide range of artists, including Taylor Swift, Whitney Houston, Madonna, Jay-Z, Eminem, The Who, Elvis Presley and Frank Sinatra. Keep on adding on When Kian Capital completed the acquisition of Team Air in May, the Charlotte, North Carolina-based lower mid-market PE firm eyed two pillars of growth for the Nashville-based HVAC equipment distributor. The first was territory expansion, and the second was an acquisition program. Rafael Canton spoke to Kian Capital principal Jordan Lee for an update on the strategy. Upgrade to read the story. That’s a wrap for today. Rafael will write to you tomorrow, as Obey Martin Manayiti takes a few well-deserved days off. And I’ll be back with more on Monday. Cheers, MK Read the full wire commentary on PE Hub ... | 