Automate Investor Relations With a Private Equity Platform

With the COVID-19 pandemic creating physical distance between investors and fund managers, frequent communication with a private equity platform is even more paramount. 

Firms historically struggle to create a consistent and clear flow of information with their LPs, causing Investor Relations teams to feel stuck in a reactive state with limited tools to improve communication and visibility.

PEI asked 120 Fund Managers about their communications with investors and 61% stated LPs request more frequent reporting about portfolio company revenues in light of COVID-19. 

In this guide, we’re sharing how funds can keep in step with frequent reporting requests. 

For IR teams to drive key relationships and continue everyday engagements they need to:

Automate common workflows 

A maxim of productivity is to automate anything that is done more than twice. In IR departments several activities fall within this category and can be automated with a private equity platform. 


A well-crafted PPM is an asset to investor relationship management. A PPM with modern design and thorough information can bolster confidence. Automate the process of creating your private placement memorandums so your investors see your consistency, attention to detail, and reliability. 

Cap Calls

Capital calls must be executed flawlessly to ensure the growth of your fund. Create a cap call template that includes your key information like percentage of unfunded capital called for, due date, list of total commitments, name of the fund, and payment details. Once this template is in place, it should be added to your private equity platform so you can automatically deploy it when your firm finds its next promising deal. 

Distribution Notices

Managing distribution notices with an email service can become an administrative nightmare. Automating the distribution notices saves hours and ensures the communication schedule is reliable which cultivates LP trust.

Review communication coverage of investors and stakeholders with your private equity platform

Use interaction data provided by your communication platform to create a proactive plan for engagement. Develop a habit of reviewing tearsheets that summarize interactions with LPs. 

Measure engagement to inform follow up activities, and talking points

From your interaction reports and tearsheet review, you will see details of each interaction. Those details should be used to schedule further, meaningful connections with investors. 

Perhaps you need to schedule a brief touch base to inform an LP on the progress of a recent cap call. Perhaps you see a group of LPs is waiting on a report. Develop a practice of reviewing your LP interactions weekly and creating your task list from that. 

Provide self-serve analytics in a secure portal

Self-serve analytics is the norm for today’s tech-literate consumers. Provide investors access to as much data as possible while still maintaining a high level of communication. 

Most LPs appreciate the ability to dig into data and review it for their own purposes. Your private equity platform should have several options to display and deliver self-serve reports for investors. 

Proactive outreach earns trust

The state of investor communications has been indelibly changed. Proactive outreach to LPs is a new requirement. 

Use automation to optimize administrative tasks, follow-up based on previous interactions, accountability across the team, and share rich reports with LPs through a secure portal.

Through technology, communication can be automated without sacrificing the investor experience. Reduce time spent on one-off requests and take advantage of your data, interactions, and industry knowledge to build stronger investor relationships.

We have much more to share on leveraging cutting-edge tools for seamless LP relations. Listen to Preferred Return Episode 1: “Own Your Edge”, to hear Kjael Skaalerud, SVP of Revenue at Altvia discuss what’s top of mind among PE firms that are currently shopping for technology and how modern sales organizations are raising capital and finding investment opportunities.

A traditional crm was built for general ‘customer’ scenarios

Software platforms have made the world a better place by making work a better place. Indeed the world is better off when people enjoy their jobs even marginally more, and workplace applications on big CRM platforms like have done that and much more.

But the potential that platforms like these offer presents diminishing returns: once the platform provider has engineered too many industry specific components into its platform, its usefulness for other industries begins to be threatened, and with that so do the usefulness of the component tools built into the platform.

So it is with the CRM category that has defined: it is generic enough to work for many industries, and yet still offers the potential for others to round off the edges and nail more vertically-oriented and extremely tailored software solutions.

Private capital markets are actually a great demonstration of this dynamic. Where generic CRM platforms simplify — appropriately so — to assume there’s a business, a customer, a sale, and service of that customer, there are a few industry-specific pieces that are missing.

Take for example, that investors become customers by investing through legal entities the GP raises. It’s a subtle but important nuance that just doesn’t make sense at a platform-as-a-service level (because it’s overly complicated for a simple one-time sale that many industries require), but which can easily be added without 10 years or software engineering. Once provided, the rest of the platform’s components become tremendously powerful again and you’re set to take over the world.

As a traditional CRM in our pillars methodology, these nuances must be present to properly account for investors in these legal entities, potential target companies and which are owned by these entities, the context of all interactions with these parties (as well as the appropriate overlap, ie co-investments), and how you’re arriving at finding these opportunities on both sides of the equation, such that you’re able to piece together what’s effective and what’s not. Not just because we say so, but because these are the very relationships and data that are key to the motivation behind a CRM in any industry.

It’s critical, too, that the valuable publicly-available information that helps to enrich CRM systems and save users painful steps of entering it themselves is fully-integrated at the platform level.

Again, look no further than the 3,000+ pre-built integrations that — the creator of the CRM platform concept — has at a platform level to do so, and which only exists by way of holding just short of overly-specifying certain industry workflows that would present challenges to properly integrate.

Stakeholder reporting and communication (investor relations) draws on a range of datasets

The traditional “customer service” model of CRM systems once again makes overly-simplified assumptions about the customer relationship when applied to private capital markets.

In fifteen years I personally have yet to hear the terms “warranty” or “service call” in this market because it’s just not the same. But make no mistake, as uncomfortable as it may be to say aloud, customer service is more important now than ever and it’s constantly happening; the industry is, after all, considered to be a financial “service”.

As it turns out, that service is primarily information-based — it’s driven by data and takes the form of reports and analysis that drive decisions, and then end up again in investor-facing reports and analysis.

The foundational elements of a private capital markets CRM must be built such that they accommodate this data (like we discussed above), but so too that it can accommodate additional supporting data that investors (customers!) need in the context of service.

Oftentimes this supporting data — financial metrics and time-based values, for example — is believed not to meet the traditional definition of CRM and the natural thought is “well, better do this in Excel!”.

While I happen to believe Excel is still the greatest software application ever built, its introduction to this value chain we’ve discussed herein actually creates the problem many firms suffer from: key data needed to provide customer service (again: effectively the entirety of a firm’s reports and analysis) is now in disparate systems and detached.

Both of those dynamics are important and distinct: not only is this supplemental data disparate, but when brought together there is no logical association that can be made between the two data sets.

Allow me, then, to make the point very simply: not only can this financial and time-based value data (you may be thinking about is as “portfolio monitoring” or “accounting”) be a part of a CRM, it is arguably the most important part of a CRM because it’s at the core of what providing service to the customer entails — information that comes out of data!

Firms need a digital method to engage stakeholders (ie investor portals)

Investor portals are not new; in fact, for many of us — including myself — they conjure up horrifying nightmares in which we’re aimlessly guessing at folders to find the newest document we need.

So in lies the opportunity: not only have the portals we’ve come to hate not simplified the process of acquiring information, they’ve failed to create an entirely new experience that is “customer service” driven.

To be fair, this is not a B2C market where you’d be long out of business for not having focused on customer service and thus the customer’s technology-driven experience. But don’t expect to be around too much longer if you aren’t thinking about this shift.

Today’s institutional investors increasingly expect this same consumer-like experience, and a massive opportunity is being missed by not providing it. It’s not about providing them the experience they desire; it’s more about the ability to measure engagement that is had in return.

Put simply: what’s keeping the market from providing this experience is the availability of the information that’s required to create the service that provides the experience.

If you’ve hung in this long, you know that by focusing on your CRM, you have the data that’s required to manage the customer relationship and the technology-driven experience through which that information is shared to create a differentiated and opportunistic customer experience.

investor experience