With the current disparity in upper quartile and median private equity returns narrowing, fundraising is getting tougher, and savvy fund managers are looking for new ways to differentiate themselves. Leveraging the power of technology can be one such differentiator. Imagine being able to say the following 7 things to your existing investors and prospective new investors:
- “Our database provides us with a systematic way to rigorously track and proactively identify the best investment opportunities, and the foresight to act on them quickly. ”
- “Because our database tracks the source of each of our deals, we can easily see who is bringing us the best deals, which allows us to focus our efforts on them while simultaneously evaluating why certain sources have gone cold and how we can cultivate them.
- “We track various metrics around each of the companies in our portfolio, and we know what each company is doing over time and what they’re currently being carried at this quarter.”
- “Our software system lets our most senior people focus on what they do best–investing–while eliminating menial tasks.”
- “When we get a secondary opportunity to invest in a fund, we already have data on most of the companies in the portfolio, allowing us to move quickly and evaluate the portfolio’s value more accurately, and that means greater returns to you.”
- “Suppose one of our top-tier managers’ key value-driving companies is a leading SaaS company. Our database has data on 200 SaaS deals, including metrics on recent private SaaS financings and M&A transactions. That’s how we’re adding value to our manager relationships.”
- “The data we collect in our software system helps us perform better secondary analysis and lets us differentiate ourselves in the eyes of the most highly sought-after fund managers. The end result is that we make our investors more money.”