Technology and private capital – an ever-evolving partnership
Our CTO Dr. Dimitris Matalliotakis shared his thoughts on the evolution of technology in private markets, the main challenges as well as the importance of finding the right partner when outsourcing, as part of a SuperReturn CFO/COO panel in October 2022:
“The private equity industry has never had the pressure to make a real effort of harmonising or streamlining data flows, processes, interfaces between organisations. As a tech-enabled solution provider, we see the challenges this brings along at a stronger level because we see our clients struggling with interoperability when working with multiple external service providers. Not being streamlined is definitely a major challenge for digitalisation. There will be public pressure in the form of regulatory regimes, like ESG where data that needs to be managed, becomes more manageable and maybe that is the moment that a standard is implemented that goes beyond exchanging PDF files.
We actually see technology which is independent of the industry progressing everywhere and revolutionising other industries. Clients have a low tolerance for systems that are not as intuitive and intelligent as they are using in their private lives. If we look at how tech evolved even in the 80s, 90s and 00s, and compare it with today, this is currently evolution at an accelerated pace. Nowadays, the question is really about how open and interoperable systems are. Those that were developed 20 years ago simply don’t have that, whilst the most modern platforms do.
When it comes to outsourcing to an external partner, we don’t experience cost being the most important factor, risk however is certainly an element. In our experience, it doesn’t help to just outsource to any external party to get rid of your problems however, because if that doesn’t go to plan, the challenge is going to be back in your organisation. So, it is absolutely essential to find the right partner.”
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As part of the BAI Anniversary Brochure 2022, AssetMetrix’ CTO shares insights on the topic of technology transformation in private equity and looks at how fund managers and investors can turn challenges into opportunities.