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AI-Powered Value Creation for Portfolio Companies
The Problem
You have a portco with a technology stack that was never built to perform. Incumbent vendors whose contracts have not been renegotiated in years, with pricing that reflects a different era of what technology should cost. Systems that do not talk to each other. Manual processes that exist because nobody had the mandate to change them. The fund has an EBITDA target and a holding period. That gap between where the business is and where it needs to be is sitting in the infrastructure. Everyone can see it. Nobody has fixed it.
Our Answer
FractionX gets dropped into portcos by operating partners who have already identified IT as a performance problem. The work is always the same. Find the revenue the business cannot see because the data has never been connected. Eliminate the cost sitting in the technology stack that should not be there.
On the revenue side
We aggregate customer, market, and public data then use AI to surface the growth opportunities buried inside it. For a services business this looks like identifying clusters of potential customers in geographies the sales team was not covering.
On the cost side
We build agentic automations between legacy systems that collapse what used to take hours into seconds. We build forecasting and demand planning models that eliminate waste. The business does more without adding headcount.
PE firms think in basis points. Basis points over time multiply exit value. We measure every engagement against that standard. We will not claim a number we cannot substantiate.
Results We Have Delivered
| What Changed | Result |
|---|---|
| Quarterly reporting cycles | Reduced from three weeks to hours |
| Data warehousing and reporting vendor | Replaced $1M annual contract with $250K solution. Company now owns the IP. |
| CS ticket resolution — PE portco | 25% to 85% on first reply within five days of go-live |
Quarterly reporting cycles
Reduced from three weeks to hours
Data warehousing and reporting vendor
Replaced $1M annual contract with $250K solution. Company now owns the IP.
CS ticket resolution — PE portco
25% to 85% on first reply within five days of go-live
Where We Start
Every engagement begins in the same place. We look at the data the business is sitting on and the technology stack underneath it. From there we identify the levers that actually move the number — revenue the business is leaving on the table, cost the business should not be carrying. The hard part comes next. Firing the incumbent. Ripping out the legacy system. Replacing it with something leaner that moves the margin. That work is uncomfortable. It is also where the basis points live.
What PE Portcos Usually Need
Most PE engagements start with FX Blueprint to map the technology stack and identify where the value is. FX Build delivers the applications that capture it. For portcos without internal technical staff, FX Managed Services keeps everything running so the operating team can stay focused on the business.
Case Study
See how a PE owned outdoor products manufacturer used an AI-powered knowledge base to cut first response time from 4 hours to 1 hour and resolve 85% of tickets on first reply.
Read the full use case →Ready to find the basis points in your portfolio?
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