Digitizing Private Equity to Meet Growing Investor Demands

Updated on: July 17, 2023

The private equity industry is abundant with operational data, but its full worth has yet to be unlocked due to the continued use of outdated systems and processes. Yet, it’s operational data that’s key to satisfying LPs and staying ahead of the competition.

Today, competitive leaders are those that can source high volumes of information, fast and provide accurate insights on every aspect of their operations. Those that cling to legacy systems and processes will be left behind as digital evolution – or digitization - is necessary to survive an increasingly competitive environment.

Redefining The Status Quo

The status quo of raw data trapped in spreadsheets and the manual processes used to interpret that data won’t do anymore. LPs are no longer relying on interpretations and assurances from their GPs. They are asking more pointed questions and expect accurate, transparent answers.

Data is the answer – and digitization is the way in which raw data becomes meaningful insights.

Without a digital platform, data often remains unstructured and disorganized. Digitization makes data usable, digestible, and accessible. Digital systems and processes are agile and intuitive. They’re able to meet new investor demands, including faster turnaround times and more transparency into the underlying fund investments.

Funds are facing more pressure to create efficiencies, manage complexity and deliver information on demand. As managers seek to standout in a highly competitive environment, digitization is the way to satisfy investors and gain a competitive advantage.

It’s No Time To Do It Yourself

The future of private equity is digital, but building a digital platform in-house is expensive, resource intensive, and requires specialized expertise. Further, managing a digital platform - worrying about infrastructure, staffing, and training - distracts from what matters most: your investments.

Sophisticated fund managers know this. That’s why they’re choosing to partner with fund administrators who have the resources to keep up with the latest technology and expertise to navigate an everchanging industry.

To understand what the future of private equity will look like and if you’re equipped with the systems and processes to survive the competition, read Defining Digitization in Private Equity: How unlocking data will change the way the industry works

Published on: November 11, 2022