AI Startup Promises to Cut Private Equity Research Costs by 90%

[etfs]

A new startup called DiligenceSquared is aiming to transform how private equity firms conduct deal research by using AI to replace much of the expensive consulting work traditionally done by firms like McKinsey & Company, Boston Consulting Group, and Bain & Company. The company claims it can deliver consultancy-level commercial due diligence reports for around $50,000—far below the $500,000 to $1 million often charged by traditional consultants.

The startup uses AI voice agents to interview customers of companies targeted for acquisition, gathering insights that help investors evaluate deals faster. Founded by former Blackstone principal Frederik Hansen and former BCG consultant Søren Biltoft, the company has already secured multiple projects with major private equity firms since launching in late 2025.

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love that private equity firms are finally realizing they can replace $1m reports with $50k bots lol