What does the AI platform have to say about PE Fund Administration?

It appears there is no question ChatGPT can’t answer – but just how much does ChatGPT really know about private equity fund administration? Our industry experts queried the platform and react to its answers.

We Asked

"What are the benefits and drawbacks of using a third party for private equity fund administration?"

ChatGPT Answered

The use of third-party administrators for private equity (PE) fund administration offers both benefits and drawbacks. Here are some of the key points to consider...

Our Take

All the benefits ChatGPT mentioned are important, however, it fails to mention enhanced technology as a benefit of using a third-party fund administrator. While technology...

We Asked

"As private equity has matured as an industry, how have fund structures and reporting evolved to keep pace with the increased sophistication of LPs?"

ChatGPT Answered

As the private equity (PE) industry has matured, fund structures and reporting have evolved to keep pace with the increased sophistication of Limited Partners (LPs)...

Our Take

As PE reporting has matured, transparency into underlying investments, data management, and overall communication have improved significantly. One area to highlight is...

We Asked

"How do the current tax laws affect carried interest for Private Equity Funds?"

ChatGPT Answered

Carried interest is a portion of the profits earned by private equity fund managers that is typically taxed as long-term capital gains. The current tax laws can affect carried...

Our Take

At its core, tax questions are ones of legislation, legislative history, economics, and intent. While ChatGPT can help to provide a general understanding of a topic...

We Asked

"What role will technology play in private equity accounting in the next three to five years?"

ChatGPT Answered

Technology is expected to play a significant role in private equity accounting over the next three to five years. Here are some of the ways technology is expected to...

Our Take

Over the last decade, technology has had an immense impact on the accounting industry and is expected to continue to have a profound impact on the...