Together with Brackendale Consulting, a global agency specializing in marketing and PR within the alternative assets space, AssetMetrix set out to explore the use of technology in private equity operations and attitudes of LPs towards technology innovation. Having surveyed a mix of pension funds, insurance companies, family offices and fund-of-funds from across Europe, North America and Asia, the main findings are as follows:
- A majority of LPs are more likely to consider allocating to a fund if the GP has a tech-enabled partner to outsource middle-and back-office activities to.
- Key challenges LPs are facing are around aggregating data, collecting and using relevant ESG metrics, fulfilling reporting requirements.
- Only 17% of LPs receive responses to ad-hoc requests within a day from their GPs, most taking longer due to manual processes and the struggle to handle, analyse and emit data without external support.
- More resources are needed to fulfill stringent reporting requirements, most LPs expect their GP counterparts to deliver on this.
- Technology is mostly required specifically for gaining a clear and consistent view of investments, to be able to slide/dice/filter data for further use, enabling customized reporting within flexible portals as well as ensuring a single point of truth is achieved for all relevant data.
Fay Margo, CEO, Brackendale Consulting: “Technology is becoming omnipresent in the modern private equity world, and it is encouraging to see LPs becoming aware of the role that technology plays within their investment processes. However, GPs still lag slightly behind in the adoption of technological tools, leaving them with some work to do.”
Gilles Pelosato, CRO, AssetMetrix: “As one of Europe’s leading accelerators for digital transformation in private markets, AssetMetrix is pleased to see LPs placing importance on the technological capabilities of their GP counterparts. We look forward to enabling both GPs and LPs to close the technological gap that still exists in private markets.”
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