Technology is reshaping the future of private markets by providing fund managers the tools to support their LPs with efficiency and automation and supporting their investors with data aggregation and bespoke reporting. This technology can be applied across all asset classes, including real estate and private debt, and it relieves the manual burden of supporting those areas. As LPs look for technology-based solutions, they are typically driven by efficiency and automation. To better serve LPs’ technology needs, managers should seek out tools offering digitization to enhance the LP experience.
These digital tools can give emerging managers a competitive edge. While the basic technology may be widely available, tools to support data management and a positive LP experience will set managers apart from their peers. Within the private market sphere, intelligent automation and business process automation have been getting the most attention recently, and those technologies are particularly helpful for document collection (such as portfolio company information) and presenting data in a way that allows investment teams to analyze and generate reports quickly. Automation can also take over the manual burden of data mining.
In short, there are three main trends to watch in the private market space. First, as LPs look for more flexibility than the closed-end structures that have been common in the past, they’re now shifting towards open-ended or hybrid structures with better access to liquidity. Managers who can support these structures within liquid assets will have greater success. The second trend is all about technology, with everyone seeking the technology that will allow them to fulfill their responsibilities. The third trend to watch is fundraising transparency—knowing where money is coming from.
At SS&C, we enable our clients to scale and focus on core competencies while streamlining and creating efficiencies across investment and fund operations.
We provide global operations services, fund administration and industry-leading technology to today’s largest fund managers. Entrusted with $2 trillion in alternatives assets under administration, we serve a global clientele and cover a full range of alternative investments, including hedge funds, private equity, funds of funds, real estate, real assets and direct investments.
To learn more about how technology is reshaping private markets, contact us.
