Private equity recruits data science talent to tackle ML

More PE firms are adding chief data officers as they incorporate machine learning

- Laura Kreutzer

More private-equity firms are recruiting data-science experts as they incorporate machine learning and data analytics into their investment processes and to support their portfolio companies.

The evolution of artificial intelligence has whetted the industry’s appetite for data-science expertise, investors and executive recruiters say.

“If you are a person who knows data science and dealspeak, you are a special person, and your market value has increased," said Joseph Healey, private markets practice leader at executive recruiter Korn Ferry.

Small and midmarket firms, such as Access Holdings Management and Frazier Healthcare Partners, have been adding data-science experts to their ranks, while larger firms and early movers, such as EQT, Partners Group and Two Sigma Investments, have built sizable teams. Since it launched its Motherbrain data-analysis and machine-learning platform in 2016, EQT has built a team of more than 40 people at Motherbrain and expanded the unit’s focus from supporting the firm’s venture platform to include other strategies, such as private capital, infrastructure and its recently acquired Asia investment unit, BPEA EQT, according to the firm.

These firms and others say they want to find data-science professionals with the ability to interpret and translate data for those who aren’t experts, making communication skills as valuable as technical expertise.

“Ultimately deals get done by private-equity investors," said Drew Conway, managing director and head of data science for private investments at Two Sigma Investments. “They don’t get done by data scientists. You have to be able to stand in front of the senior partner of a private-equity business and explain to them what you did…and how you think the results may be used."