Kirkland and Palantir to build AI tool for private equity fundraising work

In short: Kirkland & Ellis has signed a multiyear deal with Palantir to build an AI tool to help its lawyers advise private equity firms that are raising money from investors.

What happened

Kirkland & Ellis, the world’s highest-grossing law firm, said it will work with Palantir to develop AI technology for its investment funds practice. The goal is to help the firm support private equity groups, also called buyout firms, as they raise large funds from investors like public pension funds.

Kirkland said the tool will help with fund paperwork. This includes drafting documents and “side letters”, which are special extra agreements for specific investors. It will also help keep track of what private equity firms promised investors, and monitor whether those promises are being followed, which is often called compliance.

The firm also said the tool can help with “continuation vehicles”. These are deals where a private equity firm moves a company from an older fund into a new one it also controls, which is a bit like selling a house from one pocket to another.

Kirkland plans to invest $500 million to build its own AI platform, with more than $100 million expected to be spent this year. The firm said Palantir will not have access to confidential client data.

Why it matters

This is another sign that big law firms want AI tools to handle repeatable work faster, and to spread the knowledge of senior lawyers across larger teams. Kirkland partner Erica Berthou said this could also change how clients are charged, shifting from billing by the hour to billing for a whole project.

Source: Financial Times