AssetMetrix discussing the New LP-GP relationship at the Private Equity Exchange Awards 2021
At this year’s digital Private Equity Exchange Awards AssetMetrix Founder & CEO Emmeram von Braun was part of an interesting panel on “The New LP-GP Relationship” on 4th March 2021.
The content of the panel included a discussion on the impact of the Covid-19 pandemic on the private capital industry and how it has affected communication between LPs and GPs.
LPs have experienced a high level of communication with GPs over the past year. However, there is a lot of room for improvement as the standard is PDF reporting, which can’t be inserted into LPs’ own systems. So, there is a need for a more dynamic approach to obtain more transparency.
The digital elements also forced GPs to adapt, within the company, but also with their investors. PDFs are used here as well, although important KPIs are sent via Excel sheets.
Emmeram von Braun explained that the LP-GP relationship is about trust but must be supported by additional measures, such as transparency and the timeliness of data and information. He further emphasized that PDFs are not truly compliant.
AssetMetrix supports closer interaction by providing a platform on which data can be exchanged and insights can be gained to create greater transparency, bringing both sides together.
The panel concluded that Covid-19 showed that technology became the essence and space should be made for advanced technology such as a secure and stable platform.