Updated on: July 17, 2023
In today’s competitive market, investor demands are becoming increasingly difficult to meet. LP requests are more complex and more frequent than ever before — and investors expect them to be completed more quickly, too. So how do GPs keep up?
As with any competitive environment, you must adapt and evolve to survive.
Private equity is no different. Those that cling to legacy systems and processes will be left behind as digital transformation — or digitization — is necessary to survive an increasingly competitive environment.
You’re Only as Strong as Your Weakest Link
Currently, raw data housed in spreadsheets is unstructured, disorganized and impossible to fully analyze. Such legacy systems and manual processes could be the downfall of your firm.
On the other hand, digital platforms provide the competitive edge you need to thrive.
They are flexible and scalable and, most importantly, adaptive. These tools enable you to source high volumes of information and are responsive enough to meet new investor demands, including faster turnaround times and greater transparency into the underlying fund investments.
Take Sensr®, a fully managed fund performance and attribution analysis tool. It’s a next-generation, web-based reporting solution that offers dynamically generated performance metrics. Sensr® provides access to aggregation and drill down capabilities at the fund, investment, and investor level.
How To Get Ahead of The Competition
Investors are asking deeper questions and no longer rely on guesswork and assurances from their GPs. They’ve come to expect detailed — data-driven — transparent reports, fast.
In answer, GPs need to evolve beyond legacy systems. At the same time, building a digital platform in-house is expensive, resource intensive and requires specialized expertise.
So how can GPs keep up? Partner with a fund administrator, one that has the resources to stay ahead through the latest digital technology along with the expertise to navigate an everchanging industry. Then, you can focus on what matters most: your investments.
To discover if your systems and processes are holding you back, read Defining Digitization in Private Equity: How unlocking data will change the way the industry works.
Published on: December 12, 2022