Covenant, the AI-powered law firm built for private markets, has officially announced the launch of Covenant 2.0, which happens to be a data intelligence platform, geared towards transforming traditional legal infrastructure.
According to certain reports, the solution delivers, at the disposal of investors, direct, real-time access to verified legal data and insights, all for the purpose of unlocking unprecedented speed and leverage throughout the investment lifecycle.
To understand the significance of such a development, we must take into account how reviewing, extracting and organizing data from investment documents currently remains a slow and expensive process. You see, without a centralized source, it’s nearly impossible to track historical data, thus restricting the ability to negotiate quickly and make informed data-driven decisions.
Against that, Covenant makes it possible for investors to retrieve verified legal data instantly. This it does on the back of its proprietary technology, which can analyze fund terms, benchmark portfolios, visualize trends, and surface hidden correlations, all through natural language prompts, on a secure, intuitive interface.
“Legal data has always been locked in PDFs and law firm files, making it difficult to manually sift through and obtain key insights to leverage in negotiations,” said Jen Berrent, CEO and co-founder of Covenant. “Covenant 2.0 will alleviate this ongoing bottleneck for private market investors by enabling them to gain immediate access and control over their legal data, which hasn’t been done before. We’re not layering automation on top of legacy law firm processes; we’re restructuring the workflow system for the legal space.”
Talk about the whole value proposition on a slightly deeper level, we begin from the feature to consult with Covenant AI. This translates to how users can query their verified legal dataset in natural language and get instant answers backed by verified data.
Next up, we have the prospect of expanded investment reviews. Here, users can come expecting AI-generated commentary, issue spotting, and negotiation insights for every investment type.
“Covenant has helped scale and reduce TIFF’s legal diligence while lowering cycle times, giving our teams fast, verified answers when it matters most,” said David Snow, CTO at TIFF Investment Management. “We look forward to partnering with Covenant 2.0 where we expect even deeper portfolio analytics.”
Another detail worth a mention is rooted in the access to comprehensive investment data. In fact, every term, amendment, and side letter is instantly structured and searchable. Complementing that would be a facility to conduct thorough portfolio analysis, a facility which allows you to detect trends, benchmark terms, and map correlations across funds and direct deals.
Hold on, we still have a couple of bits left to unpack, considering we haven’t yet touched upon the availability of comprehensive market coverage. Basically, the innovation in question is designed to support every private market investment type, from closed-end and hedge funds to credit, real estate, and direct deals.
Rounding up highlights would be an assortment of visual graphs that can come together to create a chart of any terms for your portfolio, or any targeted subset of the same.
Among other things, it ought to be acknowledged that Covenant’s platform integrates, at launch, a variety of diverse AI models to provide clients with access and benefits of the latest AI developments, and it does so without the risk of losing privacy. Furthermore, the solution is markedly built for enterprise-grade security with its SOC 2 Type II certification, zero data retention, and a commitment to no AI training on client data.
Making the given development even more significant would be Covenant’s stature. Founded in 2021, the company is currently trusted by a host of top-endowments, sovereign wealth funds, and global asset managers, with a staggering $2 trillion worth of assets under management.
“For institutional investors like Trinity, legal review has historically been one of the most resource-intensive aspects of our investment process. By leveraging Covenant’s AI-powered platform, we’ve been able to transform how we access and analyze legal data. What once required weeks of manual review is now delivered in days, with the confidence of attorney-verified accuracy,” said Craig Crow, CIO at Trinity University. “This shift not only saves us time and cost, but also gives our team more confidence and agility in making investment decisions.”
