Key Takeaways
- • Private market valuation practices are under pressure as AI adoption accelerates, with Wealth Professional's headline pointing to scrutiny of how valuations are set across private markets.
- • Coverage of the private equity valuation gap identifies geopolitical volatility, AI scrutiny, and tighter credit as the forces widening the spread between private and public valuation assumptions, with middle-market assets flagged as particularly exposed.
- • AI companies command significant valuation premiums over the broader venture market, with Series A deals for AI companies reaching a median of $58.8M, according to supplemental coverage.
- • Hamilton Lane data shows AI's share of venture deal value has grown steadily, reaching a larger share of deal value as of Q4 2025.
- • Valuation providers report that AI is reshaping valuation workflows, from data sourcing and analysis to model generation and report writing, while general partners face pressure to position portfolio companies on the right side of the AI shift.
Summary
Related reporting on the private equity valuation gap identifies geopolitical volatility, scrutiny of AI-driven businesses, and tighter credit conditions as factors widening the difference between valuation expectations in private markets. Middle-market assets are singled out as an area of particular concern in that analysis.
Venture capital is where the AI shift is most visible. According to supplemental coverage, AI companies are receiving significantly higher valuations than the broader market, and Series A deals for AI companies have reached a median of $58.8M. Hamilton Lane data indicates that AI's share of deal value across venture has grown, with the firm's figures current as of Q4 2025. Commentary in the supplementary material notes that AI investment in private markets is expanding quickly, with early-stage capital flowing in and revenue scaling rapidly, making AI adoption a key dividing line between winners and laggards.
Valuation practice itself is also changing. Industry commentary cited in the coverage describes how AI is reshaping valuation work, from data sourcing and analysis through model generation and report writing. For general partners, AI is described as a double-edged sword: portfolio companies must be positioned on the right side of the technology shift, which adds pressure on how holdings are valued and presented to investors.
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