How Digital Transformation Helps GPs Deliver More Value to LPs

Updated on: July 17, 2023

In today's digital-first world, people are used to getting what they need at the click of a mouse or the swipe of a finger. LPs are beginning to expect the same level of convenience and immediacy from their GPs in private equity. However, private equity is still in the early stages of digital transformation.

This digital divide has consequences for both parties. GPs are missing out on efficiencies that could save time and money, as well as the chance to provide greater transparency and up investor satisfaction. LPs are missing out on critical portfolio insight.

The Benefits of Digital Transformation

It’s clear that all stakeholders can benefit from new digital fund administration processes. Let’s start with GPs. A fund administration partner lifts the burden of manual, in-house process, automating tasks such as accounting, data entry and reporting.

More sophisticated digital tools also enhance decision-making by providing structured data, ready for analysis. LPs also need data in a usable format to help make their investment decisions. They are demanding seamless access in near real time.

Unlocking Data with Digital Transformation in Private Equity

To truly unlock and deliver on the value of private equity data, GPs can close the gap through a digital platform. The key thing to keep in mind is that digital transformation is not a one-time event — it’s an ongoing process that should be incorporated into the DNA of all operations.

Now is the time for private equity to catch up to other, more digitized industries in order to keep up with what LPs really want. Read more about embracing digital transformation in our ebook: Defining Digitization in Private Equity: How unlocking data will change the way the industry works

Published on: January 11, 2023