The need is to have an Asset & Portfolio Monitoring application that gives users a consistent view of financial and operational performance; a customisable Integrated Modelling & Forecasting application enabling users to configure custom dashboards and reports; and an Investor Management & Reporting application, so users can manage those relationships while elevating transparency throughout the process.
The next step in tech adoption is data-driven insights. Creating harmonised and streamlined data on digital platforms allows you to perform analysis that goes well beyond aggregations of historical data. Fund managers will be able to investigate the future with forecasting models and risk analysis delivered on a platform.
Let us take an example of private credit. Investors want to access details of lending assets most directly. This is often easier said than done. While making an investment decision, investors consider all aspects including but not limited to underwriting practices, the pricing of risk, and deal structuring. Origination, documentation, and servicing capacity are now critical points of differentiation for investors when assessing managers.
Fundraising is not easy; it is one of the most exhausting, daunting, and frustrating processes GP encounters. For most managers, fundraising remains a problematic, unwelcomed task with plenty of risks. With the change in investor -LP’s behaviours, if GPs do not have the rights tools to engage and communicate, it can be detrimental to the raise. A GP may have a dedicated Investor Relations team tasked with managing LP relationships and securing new commitments. Despite this, GPs find it time-consuming to organise follow-up meetings with LPs while still tending to the essential day-to-day tasks of managing the firm and the portfolio. Technology can be an invaluable strategic partner to help the GP achieve their desired goals and complete the fundraise efficiently.
The ‘black box’ and ‘pen-and-paper’ days of marketing and raising capital are long over. This is the age of mass digitisation and the seamless exchange of data and documents through the web or mobile apps. This means that even smaller and emerging managers must leverage the latest technologies to streamline their capital-raising process and provide convenient access to dashboards and fund performance for LPs on-the-go.
A modern approach to marketing and transparency is a ‘one-two punch’ for incremental asset growth. GP’s are fighting for LPs’ attention, and it has never been harder to sustain interest and keep LP’s engaged. What you offer beyond performance must be aligned with the shifting demands of investors. Like it or not, technology in marketing and reporting will play a more prominent role in incremental asset growth in the future.
Fund managers are looking for solutions that can combine the knowledge of the requirements of fund managers and private funds with an understanding of how advanced technological offerings can provide value. Use of industry-standard as the software in the SaaS model ensures that Fund Managers do not have to invest money today and wait for two, three, or five years before harvesting the outcome of these systems.