Private equity firms are pushing back against fears that AI will eliminate jobs, with executives arguing the technology enhances rather than replaces human decision-making. At Blackstone, AI tools analyze investment committee memos to surface typical questions in similar transactions, while translation tools accelerate international deal reviews. John Stecher, chief technology officer at Blackstone, told attendees at Private Funds CFO's New York Forum that the result is better-prepared teams rather than fewer people in the room.

While AI hasn't reduced headcount at mid-market firms, it has changed hiring patterns. CFO candidates who have deployed AI to streamline finance operations are now preferred, with KPMG's Quarterly AI Pulse Survey finding that 70 percent of asset management and private equity firms are willing to pay 6-10 percent more for candidates with AI skills. The technology is most likely to impact junior, task-oriented roles, with some firms like PwC planning to hire one-third fewer graduates by 2028.

Meanwhile, the GP-led secondaries market continues expanding rapidly. New Mountain Capital is seeking $1 billion for its debut continuation fund strategy, joining other PE firms like Hg, HIG, and Warburg Pincus entering the space. The consolidation trend in private credit is creating selection challenges for limited partners, who must now consider merger possibilities during due diligence. With GP acquisitions potentially affecting fund allocations, LPs are increasingly scrutinizing how mergers might impact team autonomy, incentive structures, and investment decision-making.