Author: Josh

Maximizing Efficiency: Strategies for the Alternative Markets

Posted on July 15, 2024 by - Private Equity Technology

Efficiency is no longer a goal – it’s a necessity.

Following a challenging fundraising year in 2023, 2024 has proven equally demanding for fundraising efforts in private equity and venture capital, characterized by a notable reduction in hiring within firms. This shift is forcing alternative asset managers to continuously innovate to streamline operations, optimize resource allocation, and maintain robust investor relationships.

As this landscape continues to unfold, alternative investment market software and technology providers have become crucial partners to navigate strategic considerations to maximize operational efficiency. This blog post delves into the strategies and technologies that firms are leveraging to maximize productivity and stay competitive in an increasingly difficult environment.

Utilize a Centralized or All-in-One Platform

Centralized platforms tailored for alternative asset managers play a pivotal role in enhancing operational efficiency. Consolidating disparate processes and systems across your firm can help eliminate silos and improve transparent, firm-wide collaboration. While no perfect technology solution exists, firms working with an all-in-one platform that seamlessly tracks deal sourcing, monitors investment performance, manages investor communications, generates and distributes comprehensive reports, and transforms data are finding an operational edge.

Embrace Advanced Technology Solutions Over Consultants

Moreover, investing in an alternative market-specific technology solution tailored to the investment industry offers distinct advantages over hiring a generic Salesforce implementation consultant. Unlike consultants who provide generalized advice, technology solutions with features designed to meet industry-specific challenges deliver measurable ROI and sustainable efficiencies. Additionally, using an industry consultant to customize a generic solution can be less time and cost-effective compared to leveraging an out-of-the-box solution that is already purpose-built to solve your needs.

Automate Routine Tasks

Automation is another game-changer in maximizing efficiency within alternative asset management software. By automating routine tasks such as data entry, report generation, and relationship tracking, firms can significantly free up valuable time for strategic initiatives. This operational streamlining not only boosts productivity and reduces the risk of manual errors, but also enables teams to focus more on value-added activities like investment analysis and relationship management.

Harness AI and Machine Learning

Artificial intelligence (AI) and machine learning (ML) are changing how alternative asset managers analyze data, identify investment opportunities, and manage risks. These technologies enable firms to leverage predictive analytics to forecast market trends, optimize portfolio performance, and uncover actionable insights from large datasets.

However, while AI and ML offer transformative potential, asset managers must exercise caution against adopting these technologies merely for the sake of adoption. Additionally, it’s important to be wary of providers that use AI and ML as buzzwords without substantiating the practical benefits.

Firms should approach AI for alternative investment markets strategically, identifying specific pain points or inefficiencies within their operations that these technologies can address. Forming strategic committees dedicated to evaluating AI solutions or consulting with a trusted technology partner ensures that investments in these technologies align closely with business objectives and operational needs.

Balance Efficiency with Relationship Management

While operational efficiency is crucial, maintaining strong relationships with investors and stakeholders is the key to long-term success in the alternative asset world. Technology enhances this by facilitating transparent communication, providing real-time insights, and delivering superior client service experiences. By integrating a modern, digital experience that complements face-to-face interactions, firms can ensure seamless and efficient engagement that meets the evolving expectations of investors.

Partner with Technology Experts

This means not only implementing the right tools but also ensuring that you have a team of experts that understands the entirety of your daily workflow. By having a knowledgeable technology partner that can seamlessly integrate technology into your operations, you can effectively enhance firm-wide collaboration and trust, anticipate investor needs more accurately, and drive sustainable growth for your alternative investment firm.

Benefits of Adopting a Strategic and Technology-First Mindset

Maximizing efficiency in the alternative investment market isn’t just about cutting costs or speeding up processes—it’s about adopting a strategic mindset that integrates technology, automation, and data-driven insights into everyday operations. By embracing these strategies, firms can unlock new levels of productivity, innovation, and growth while navigating the complexities of the alternative market.

Ready to elevate your firm’s efficiency? Explore how advanced technology solutions, like Altvia, can propel your firm forward. Contact us today to learn more about implementing these strategies for efficiency: altvia.com/book-a-meeting.

Outlook for Success: Assessing Private Equity Fund Performance for 2H 2024

Posted on July 3, 2024 by - Private Equity Technology

As we hit the midpoint of the year, it’s a pivotal moment for Private Equity Fund Managers to reflect on the journey thus far and strategize for the road ahead. The halfway point of the year offers a unique opportunity to pause and critically assess the performance of your portfolio, understand the evolving market dynamics, and recalibrate your strategies to ensure a strong finish to the year. By conducting a thorough mid-year performance review and setting clear, actionable goals for Q3 and beyond, firms can navigate the complexities of the market with confidence and precision. 

To help private equity and alternative investment firms optimize success for the remainder of the year, consider these key steps of performance analysis, market assessment, strategic adjustment, and effective investor communication:

Performance Analysis: Reflecting on the First Half of the Year

The first step in strategic planning is to conduct a thorough analysis of your fund’s performance over the first half of the year. This involves:

  1. Recap of Achievements and Milestones:
    • Highlighting key deals closed and successful exits.
    • Noting any significant partnerships or expansions within portfolio companies.
  2. Detailed Performance Analysis:
    • Comparing your portfolio’s performance against benchmarks and industry standards.
    • Identifying top-performing sectors and standout investments that have driven growth.
  3. Learning from the Past:
    • Evaluate any underperforming investments to identify areas for improvement.
    • Using these insights to avoid similar pitfalls in the future.

To effectively execute on this step, technology plays a key role. A powerful private equity CRM platform that centralizes and organizes data enables you to track, monitor, and analyze key metrics in real-time. This integrated approach ensures you have comprehensive, up-to-date insights into your fund’s performance, allowing for more informed decision-making and strategic planning.

Market Outlook: Understanding the Current Landscape

With the analysis complete, it’s essential to understand the current market conditions and how they may influence your strategies:

  1. Market Trends and Economic Indicators:
    • Examining current trends in the economy, including interest rates, inflation, and market liquidity.
    • Identifying sectors that show strong growth potential in the latter half of the year.
  2. Risk and Opportunity Assessment:
    • Evaluating potential risks that could impact your portfolio, such as geopolitical events or regulatory changes.
    • Highlighting emerging opportunities, including technological advancements and shifts in consumer behavior.

Strategic Adjustments: Planning for Success in 2H:

Based on your performance analysis and market outlook, it’s time to adjust your strategies to help ensure continued success:

  1. Revisiting Investment Strategies:
    • Modifying your investment approach based on insights from the period review.
    • Exploring new investment opportunities and diversifying into promising sectors.
  2. Risk Management and Contingency Planning:
    • Strengthening risk management practices to safeguard against potential downturns.
    • Developing contingency plans to address unforeseen challenges.

Integrating advanced technological tools, such as data analytics and visualization, can significantly enhance your market outlook analysis and strategic adjustments. These technologies provide deeper insights into market trends and investment strategies, enabling more accurate forecasting. Additionally, risk and opportunity assessments can be improved through real-time data monitoring and predictive analytics, allowing for proactive adjustments to your strategy. By utilizing domain-specific platforms, like Altvia, you can streamline data collection, improve decision-making processes, and stay ahead of market shifts, ultimately supporting a more informed and agile investment approach.

Investor Communication: Strengthening Relationships

As you optimize for the second half of the year, effective communication with your investors is key to maintaining their confidence and support:

  1. Transparent Performance Reporting:
    • Sharing detailed mid-year performance reports with your investors.
    • Providing context around achievements and areas for improvement.
  2. Engaging Stakeholders:
    • Utilizing digital platforms and solutions for seamless and secure communication with investors.
    • Hosting webinars or virtual meetings to discuss mid-year performance and future plans.

Operational Efficiency: Optimizing for Growth

Lastly, ensuring operational efficiency can significantly enhance your fund’s performance:

  1. Process Evaluation and Optimization:
    • Reviewing internal processes to identify areas for improvement.
    • Implementing technology solutions to streamline operations and enhance decision-making.
  2. Talent Management and Development:
    • Focusing on team development and providing training to enhance skills.
    • Retaining top talent by fostering a supportive and growth-oriented work environment.

The right technology helps you optimize for growth by enabling data-driven insights, automation of processes, and the ability to adapt quickly to market changes. By identifying and implementing operational improvements, you can drive strategic growth, support sustainable expansion, and maintain a competitive advantage in the marketplace.

2H 2024 Recommendation Summary

As we move into the second half of the year, a comprehensive mid-year performance review and strategic planning are essential for Private Equity Fund Managers aiming for continued success. By analyzing past performance, understanding the market landscape, adjusting strategies, communicating effectively with investors, and optimizing operations, you can set the stage for a strong Q3 and beyond.

At Altvia, we provide the solutions and insights you need to make informed decisions and achieve your strategic goals. Contact us today to learn how we can support your fund’s growth and success in the coming months: https://altvia.com/book-a-meeting/

Altvia Named a Finalist and Winner in the Eleventh Annual Family Wealth Report Awards 2024

Posted on June 26, 2024 by - Uncategorized

We are excited to announce that Altvia, a leading financial service provider in the family office and family wealth industry, was selected as a finalist and winner in the following categories at the Eleventh Annual Family Wealth Report Awards 2024 program:

  • Winner: CRM System
  • Finalist: Women in Wealth Technology (Individual) – Brie Aletto

Altvia President & CEO, Brie Aletto, and Chief Financial Officer, Christine Dye, were in attendance to accept the award and honored to be recognized amongst such high-caliber finalists at the Gala Ceremony at the Mandarin Oriental Hotel in Manhattan, New York, on May 2, 2024.

The annual Family Wealth Report Awards program recognizes achievement and showcases top-class performance, innovation, and distinction of those who serve the family office, family wealth, and trusted advisor communities in North America.

Brie Aletto, President & CEO of Atlvia, commented on the nominations: “It is a great honor to be selected by the judges among a shortlist of well-respected finalists for these prestigious awards. This recognition is a testament to the hard work that the team puts in every day to ensure our clients are getting best-in-class products and services. Thank you to the Family Wealth Report for highlighting the vigor, variety, and complexity of this industry, and congratulations to everyone who took part in the awards.”

Stephen Harris, ClearView Financial Media’s CEO, and publisher of Family Wealth Report was first to extend his congratulations to all winners and highly commended companies. “Every winning entrant has been subjected to a rigorous and independent judging process and should be rightly proud of the success they have achieved this year. This year we have seen a marked increase in entrants and interest in all our global awards programmes and the Family Wealth Report Awards are no exception. These awards give organisations and individuals the opportunity to clarify their strategic thinking, have it independently validated, be recognized internally and externally and to celebrate in style with their peers. I offer my congratulations and best wishes for the future to all winners and highly commended firms – they are all worthy recipients who join the prestigious list of wealth management professionals who form the global elite of Family Wealth Report winners.”

For more information about the Eleventh Annual Family Wealth Report Awards 2024, check out the program, Acclaim. (Altvia is featured on pages 16-17.)

About Altvia

As the technology pioneer for private capital markets, Altvia drives innovation for GPs to deliver a best-in-class LP experience. Altvia is the first solution to successfully build a fully integrated CRM platform atop Salesforce – empowering private equity, venture capital, and other alternative asset professionals to simplify data complexity, efficiently raise and deploy capital, and provide a modern LP experience.

With a commitment to excellence in service, product innovation, and having a deep understanding of the unique needs of the industry, Altvia has become a trusted partner for firms seeking to optimize their processes and achieve unfounded success in the competitive market. Founded in 2006, and acquired by Marlin Equity Partners in 2022, Altvia is headquartered in Broomfield, Colorado, and serves a top-tier global client base.

About ClearView Financial Media Ltd (“ClearView”)

ClearView Financial Media was founded by Chief Executive, Stephen Harris in 2004, to provide high quality ‘need to know’ information for the discerning private client community. London-based, but with a truly global focus, ClearView publishes the WealthBriefing group of newswires, along with research reports and newsletters, while also running a pan-global thought-leadership events and awards programme.

DPI vs. IRR: The New Metric Shaping Private Equity Investment Performance

Posted on June 18, 2024 by - Deal & Pipeline Management

In the world of alternatives, which acronym reigns supreme when it comes to demonstrating strong fund performance in private equity reporting: ROI, IRR, EBITDA, DPI? All these metrics serve as guiding stars for private equity investors navigating the complex landscape of successful investment management. However, the private equity landscape appears to be undergoing a transformation, emphasizing investments that not only forecast the highest returns but also demonstrate immediate cash distributions. So, what’s the better metric for firms to measure their investment success? Let’s delve into this evolving debate and uncover the potential shift from traditional IRR metrics to the rising prominence of DPI when attracting new investors.

Understanding DPI and IRR

First, let’s clarify what DPI and IRR represent:

  • Distributed to Paid-In Capital (DPI) measures the ratio of distributions received by investors to the amount of capital they initially invested. In simple terms, it gauges how much of an investor’s capital has been returned to them through distributions after they have made an investment.
  • Internal Rate of Return (IRR) measures the annualized rate of return earned on an investment over a specific period of time. It’s a metric that forecasts an investment’s profitability by considering the time value of money by setting the net present value of cash flows at zero.

The Pros and Cons to IRR

IRR has traditionally been the primary metric for evaluating investment success due to its ability to measure the annualized rate of return on invested capital, reflecting the efficiency and profitability of an investment over time. IRR helps investors compare the potential returns of different investments and assess whether they meet their required rate of return. 

However, IRR does not account for the scale of the investment, cash flow timing, or the reinvestment of interim cash flows at the same rate. It can be misleading in scenarios involving multiple capital inflows and outflows or when comparing projects with significantly different durations. Its shortcomings include the potential for multiple IRRs in non-conventional cash flow patterns and its assumption that interim cash flows are reinvested at the same rate, which may not be realistic. 

Given these limitations, the rising prominence of metrics such as DPI have become popular when doing a comprehensive analysis on performance. 

The Rising Prominence of DPI

While IRR is a crucial metric for assessing the overall forecasted performance of an investment, DPI provides a different perspective by focusing on the actual return to investors. A high IRR projection is undoubtedly attractive to investors, but having a strong DPI demonstrates true investment performance, which can significantly boost investor satisfaction. In a world where LPs are pressuring GPs to find creative ways to achieve liquidity, DPI becomes a vital measure for capital efficiency.

Moreover, DPI offers investors a more tangible view of their investment’s progress. Unlike IRR, which can fluctuate significantly over time, DPI provides a clear picture of how much capital has been recouped. This transparency can be especially valuable in volatile markets or during economic downturns when investors prioritize preserving capital.

Another factor driving the prominence of DPI is the evolving nature of investment strategies. As investors increasingly focus on risk-adjusted returns and capital preservation, DPI emerges as a relevant metric for evaluating performance. In contrast to IRR, which may not fully account for the timing and magnitude of cash flows, DPI offers a straightforward measure of cash return relative to invested capital.

Understanding DPI Limitations in Investment Performance Evaluation

The shift from traditional IRR metrics to the rising prominence of DPI highlights a significant transformation in the private equity landscape. As investors seek more tangible and transparent measures of performance, DPI provides a clear and reliable metric of capital efficiency. 

All of this said, it’s essential to recognize that DPI is not without its limitations. For instance, it may not fully capture the opportunity cost of capital or account for the time value of money, aspects that IRR addresses more comprehensively. Additionally, DPI does not consider unrealized gains or losses, which can impact overall investment performance.

All to say, while DPI presents a compelling perspective on investment success, it is not necessarily a replacement for IRR. Instead, it serves as a complementary metric, particularly in the realm of alternative investments where cash flow and capital preservation are paramount. 

Embracing Technology for Data-Driven Decisions

A transformative trend in private equity is leveraging modern technology to inform investment decisions. Deal teams are increasingly relying on advanced technology to uncover patterns and trends that could significantly impact potential outcomes. The demand for solutions offering predictive analytics that can accurately forecast cash flows, even amidst fluctuating market conditions, is on the rise. Additionally, deal teams seek deeper insights into customer behavior and market dynamics to identify the best exit strategies and value creation opportunities within portfolio companies.

In the past, having a robust data analytics infrastructure was a differentiating factor for firms. Today, it has become essential for demonstrating fund performance to investors. This technological pivot is empowering Private Equity firms to:

  • Make Timely Decisions: With having the right data infrastructure in place that aggregates performance metrics systematically, firms can make strategic decisions faster.
  • Identify Operational Efficiencies: Advanced analytics tools enable firms to pinpoint shortcomings within portfolio companies, driving improvements and value creation.
  • Proactively Manage Risks: Predictive analytics allow firms to anticipate and share anticipated investment performance with LPs in a more transparent and wholistic fashion.

The adoption of these technologies aligns perfectly with the growing importance of DPI as it allows firms to optimize their cash flows and enhance their capital distribution strategies. By leveraging a technology and data-first mindset, firms can identify the most promising opportunities and mitigate risks more effectively, helping to create a steady and predictable return of capital to investors.

So What Does This All Mean?

As investors continue to navigate evolving market dynamics and pursue diverse strategies, understanding the nuances of both DPI and IRR will be crucial for evaluating performance and making informed investment decisions.

Coupled with the adoption of advanced technologies, firms need to be better equipped to make informed, data-driven decisions that not only maximize returns but also ensure timely distributions to investors. This dual focus on technological innovation and robust performance metrics positions private equity firms to thrive in an increasingly competitive and dynamic market. 

Interested in learning how your firm can leverage Altvia’s private equity data platform to measure and make data-driven investment decisions? Talk to one of our industry experts: altvia.com/book-a-meeting

Unpacking Leveraged Buyouts (LBOs): How PE Firms Engineer Growth through Debt

Posted on May 2, 2024 by - Fundraising Strategy

Leveraged buyouts (LBOs) are a cornerstone of private equity, where financial engineering meets strategic acquisition. In an LBO transaction, PE firms acquire companies using a substantial amount of debt, aiming to amplify returns by leveraging the acquired company’s assets and cash flows. But, what does that even mean? How do LBOs work? And what are the implications for both the investors and companies involved?

What is a Leveraged Buyout (LBO)?

A leveraged buyout is a financial transaction in which a PE firm acquires a company primarily using borrowed funds, with the expectation that the target company’s cash flows will be sufficient to service the debt. The PE firm typically contributes a portion of equity capital, often alongside limited partner investors, while the remaining purchase price is funded through various debt instruments.

What does an LBO process look like for PE Firms?

Before making an acquisition, PE firms conduct their due diligence through a series of steps, including analyzing a potential company’s assets, cash flows, and cash expenditures. If the deal seems to have potential, the PE firm negotiates a price and outlines a deal structure. Next, they source capital to take ownership of the business, and then implement strategic changes and cost-cutting measures to accelerate growth (and revenue).

To determine if a deal is worth pursuing, firms use an LBO model for evaluation, which, as the Corporate Finance Institute explains, can get pretty complicated due to the unique factors that go into such a deal. These include, but are not limited to:

  • A high degree of leverage
  • Multiple tranches of debt financing
  • Complex bank covenants
  • Issuing of preferred shares
  • Management equity compensation
  • Operational improvements targeted in the business

Once evaluating these factors, firms need to measure key metrics to ensure the deal is favorable, such as:

  • Debt/EBITDA
  • Interest Coverage Ratio (EBIT/Interest)
  • Debt Service Coverage Ratio (EBITDA – Capex) /  (Interest + Principle)
  • Fixed Charge Coverage Ratio (EBITDA – Capex – Taxes) / (Interest + Principle)

When analyzing these metrics, firms should also conduct what’s called a sensitivity analysis. This analysis forecasts LBO outcomes based on different assumptions and scenarios, such as changing the EV/EBITDA acquisition multiple, the EV/EBITDA exit multiple, and the amount of leverage (ie: debt) used.

If using a templated LBO model, it’s essential to keep in mind that certain models use specific assumptions. In Firmex’s templated LBO model, for example, it assumes 100% acquisition of the target company, that the most recent year-end balance sheet is the closing balance sheet, that there are no step-ups in asset values, and that there will be no amortization of goodwill from an acquisition. If these assumptions don’t apply to your deal, factor that in during your analysis. 

How to structure an LBO:

At the heart of an LBO lies the intricate structuring of financing. PE firms work closely with investment banks and lenders to craft a capital structure that optimizes returns while managing risk. This structure typically involves a mix of senior secured debt, subordinated debt, and equity financing.

  • Senior Secured Debt: This forms the backbone of the LBO financing and is usually collateralized by the assets of the acquired company. Senior debt holders have priority in repayment in the event of bankruptcy or liquidation, providing a level of security for lenders.
  • Subordinated Debt: Also known as mezzanine financing, this type of debt sits between senior debt and equity in the capital structure. It often carries higher interest rates and may include equity kickers such as warrants or convertible securities, providing lenders with additional upside potential.
  • Equity Financing: PE firms contribute equity capital to the transaction, typically ranging from 20% to 40% of the total purchase price. This equity investment serves as a cushion against potential losses and aligns the interests of the PE firm with those of its investors.

How do PE firms ensure success with LBOs?

Positive Cash Flow:
Central to the success of an LBO is the target company’s ability to generate sufficient cash flows to service the debt. PE firms conduct extensive due diligence to assess the target company’s financial health, market position, growth prospects, and operational efficiency. By identifying opportunities to improve efficiency, increase revenue, or reduce costs, PE firms aim to enhance the target company’s cash flow generation potential.

Value Creation:
Another key point to understand is that PE firms execute LBOs with the ultimate goal of creating value for their investors. This means that the fund managers are hyper-focused on value creation in their portfolio companies. This value creation can take various forms, including operational improvements, strategic initiatives, and financial engineering. Over the investment horizon, the fund managers work closely with the portfolio company’s management teams to implement value-enhancing strategies and position the company for a successful exit.

Exit Strategies:
Exit strategies for LBO investments vary but typically include selling the company to a strategic buyer, conducting an initial public offering (IPO), or recapitalizing the company to distribute cash to investors. The timing and method of exit depend on market conditions, industry dynamics, and the specific objectives of the PE firm and its investors.

In conclusion, leveraged buyouts represent a powerful tool for PE firms to unlock value and drive growth in target companies. By leveraging debt to finance acquisitions, PE firms amplify returns while carefully managing risk. However, successful LBOs require rigorous due diligence, disciplined execution, and strategic value-creation initiatives. As a cornerstone of the PE industry, LBOs continue to shape the landscape of corporate finance and investment, driving innovation, efficiency, and shareholder value.

Unlock value, drive growth, and amplify returns with Altvia. Discover how our comprehensive suite of solutions streamlines your due diligence, execution, and strategic value-creation initiatives for successful leveraged buyouts. To learn more about Altvia’s solutions, start a conversation with our team.

How Private Capital Dealmakers Are Navigating Today’s Middle Market

Posted on May 1, 2024 by - Fundraising Strategy

Key Takeaways from the ACG Mid-South Capital Connection Event in Nashville, Tennessee, 2024. 

This year’s ACG Mid-South Capital Connection Event in Nashville brought together a vibrant mix of alternative asset professionals, from private equity investors to mezzanine lenders and investment bankers, all converging to discuss the pulse of the middle market.

A significant portion of the discussions revolved around market trends and valuations for middle market companies. Topics ranged from the challenges of establishing pricing baselines and employment metrics, to the debate over whether recent valuations signify a new normal or an anomaly. And notably, there’s been a surge in seller rollover equity and subordinated debt, underscoring the evolving dynamics of deal structuring. 

Here were our biggest takeaways for dealmakers:

Are recent valuations the new normal?

Valuation multiples, pivotal in determining purchase prices and subsequent investment returns, are under the spotlight. The consensus was that capital is experiencing a surge in cost. With interest rates climbing, private equity firms are grappling with heightened borrowing expenses to fuel their acquisitions. This spike in capital costs not only diminishes the allure of potential deals but also directly impacts a firm’s capacity to generate preferred returns. 

And despite the inherent unpredictability of market dynamics, the show must go on, so attendees explored strategies to navigate the challenges of deal origination and dealmaking. Among the strategies discussed were adopting value-oriented investment approaches, conducting comprehensive industry analysis, implementing operational enhancements, and employing effective timing and exit strategies. 

Creating a repeatable cash flow model.

In addition to navigating market uncertainties and strategic considerations, having a repeatable cash flow model was discussed as being paramount for private equity investors. A robust cash flow model provides invaluable insights into a target company’s financial health, helping investors gauge its ability to generate consistent returns over time. By meticulously analyzing cash flows, investors can identify potential risks, assess the sustainability of earnings, and make more informed investment decisions. Moreover, a well-constructed cash flow model serves as a crucial tool for scenario analysis, allowing investors to stress-test their assumptions and evaluate the impact of various market conditions on investment performance. Ultimately, a repeatable cash flow model not only enhances investment decision-making but also contributes to the long-term success and profitability of private equity investments.

How are private equity investors creating a repeatable cash flow model? Data and technology. Firms that have a data-driven approach to understanding their business and investment performance are able to analyze historical data, market trends, and other relevant factors to forecast future cash flows with greater accuracy and efficiency. 

AI’s role in dealmaking.

Again, is it even a 2024 event without the topic of AI being top of mind? Amidst the enthusiasm surrounding AI, concerns about its ability to be in compliance with evolving regulations arose. Industry experts emphasized that AI should be viewed as a tool to enhance productivity and efficiency, rather than a threat to human involvement or fact-checking. Just as a summer intern transforms the way we interact with admin tasks, AI represents a natural progression towards greater automation and synthesis of data within private equity platforms and tech stacks.

There’s a clear need for data quality, data visualization, and data analytics in private equity, so the integration of AI into private equity deal flow processes represents a paradigm shift in the way firms approach data analysis and decision-making. By leveraging AI strategically and adopting a progressive mindset, businesses can unlock new opportunities, streamline operations, and gain a competitive edge in an increasingly data-driven world. As we navigate this AI revolution, one thing remains clear: the future belongs to those who embrace innovation and adaptability.

Want to hear more about the ACG conference or how technology can support your firm’s evolving needs? Let’s connect!

For more ACG information, check out our ACG St. Louis DealSource Event recap.

How IR Professionals Are Navigating Private Capital Market Industry Changes, Trends, and New Opportunities

Posted on April 25, 2024 by - Investor Relations & LP Experience

Key Takeaways from Private Equity International’s Investor Relations, Marketing, and Communications Forum New York 2024.

It’s one of our favorite times of the year – PEI’s Investor Relations, Marketing & Communications Forum in NYC. This premier event of IR and marketing leaders in private equity explores the biggest pain points impacting their roles, new strategies, and best practices of fundraising, LP relations, branding, and communications.

As a proud consecutive sponsor, Altvia had the opportunity to be onsite, as well as participate on the “Investor Engagement: Leverage technology to prospect and engage new investors” panel.

And while the overarching sentiment was that it’s more competitive than ever right now for GPs, the energy and ideas were flowing and one recommendation was clear and recurrent: the power of staying connected with LPs — not only when it’s convenient, but consistently and genuinely — is paramount in staying top of mind.

Here are our biggest takeaways from this event:

Staying connected with your investors isn’t just a checkbox in your CRM.

While securing a first meeting with a prospective LP is the first hurdle, the real test lies in maintaining momentum and fostering deeper connections in-person and digitally in subsequent interactions. 

Altvia’s Chief Strategy Officer, Jeff Williams, was quoted saying “It’s Not Your Dad’s CRM” during his panel session on how to leverage technology to prospect and engage new investors. And, well, yeah it’s true. Modern CRM and relationship management have evolved. It goes beyond mere data entry and simply cannot be a rolodex of contacts. Staying connected and developing long-term relationships with investors requires effort. The right technology can help you with that. It can help you answer LP questions with proactive transparency, concise answers, and readily available fund information. If you have this infrastructure properly built and adopted at your firm, we believe you will be a differentiated GP in today’s landscape.

What LPs truly want from GPs.

Limited Partners want transparency. The value of straightforward communication that is backed by clear data is key. Being able to provide quick and comprehensive responses to inquiries demonstrates a level of preparedness and professionalism that fosters trust and confidence in the partnership.

LPs require actionable communication. Understand the specific interests and preferences of potential investors before reaching out. A personalized approach not only increases the likelihood of securing a meeting but also lays the foundation for a fruitful partnership down the road. 

Show, Don’t Tell. Don’t get caught up with flashy sales pitches. LPs appreciate when GPs let the numbers do the talking, providing concise and data-driven insights into their performance and strategy. If you’re an emerging fund manager, you can differentiate by providing white papers or documentation that clearly outlines your unique investment strategy. 

Is your storytelling compelling enough?

Having the ability to connect the dots and know where to prioritize your time with the right relationships is essential, but that’s only half the battle. Having a great relationship is one thing, but what happens next? This is where thesis storytelling is a powerful differentiator for GPs seeking to capture private equity or venture capital investor attention. Whether it’s conveying the excitement surrounding a new investment opportunity or articulating the vision for future growth, storytelling can transcend numbers and leave a lasting impression.

But here’s the thing, the art of strong storytelling comes from the ability to align interests and understand what truly matters to your audience. And that’s precisely where the right technology can play a pivotal role. It empowers you to tailor your narrative, anticipate investor needs, and deliver personalized experiences that resonate deeply—ultimately enhancing your fundraising and dealmaking performance.

Do more with less, or work smarter, not harder?

It wouldn’t be a current event without talking about the hot topic of AI. Embracing AI isn’t just about doing more with less; it’s about doing more intelligently and strategically, positioning firms to find operational advantages over other fund managers. 

It’s evident that adopting AI in your daily workflows can increase productivity. And early AI adopters are seeing the results. AI holds the promise of redefining workflows and streamlining manual tasks into concise summaries and recommended prioritizations. And as we get smarter in how we utilize this emerging technology, it will get smarter in how to best serve our workflows. That said, it must be recognized that AI needs human guidance for guardrails and fact-checking. Particularly being thoughtful about regulations, compliance, and data security.  

We’re in this together.

All in all, it was great to be surrounded by such high-caliber professionals in the alternative asset space. And it’s evident that no matter which boat you’re rowing for, everyone is rowing in the same upstream direction, searching for ways we can continue to further improve the private capital market that we all love.

Want to hear more about the conference or how our award-winning technology can support your firm’s evolving needs? Let’s chat!

Altvia’s Comprehensive CRM Platform Chosen as a Winner in the 2024 Drawdown Awards

Posted on April 8, 2024 by - Uncategorized

Altvia was selected as a finalist in two categories for The Drawdown Awards 2024: CRM & Deal Origination Technology and Investor Relations Technology. We are thrilled to announce that on June 13, 2024, at the awards ceremony in London, Altvia won the CRM & Deal Origination Technology category. This marks Altvia’s first time being nominated and winning this prestigious award.

The Drawdown Awards celebrate excellence and innovation within private fund operations and we are honored to be considered amongst several other leading service providers for the European private equity industry.

The extensive judging process, based on the views of a panel of leading private capital fund COOs, CFOs, CCOs, GCs, and CTOs, ensures these awards stand out from the crowd as ‘ones to win’ and they aim to act as a catalyst to drive up service standards and operations across the sector.

CRM & Deal Origination Technology

Altvia, a leading provider of CRM and deal origination software for private capital markets, provides alternative asset professionals with first-hand access to proprietary deals in the market, giving them a competitive edge. 

As the volume of dry powder reaches unprecedented heights, investment professionals face mounting pressure to source high-yield opportunities to deploy capital. This necessitates a delicate balance of strategic foresight, market intelligence, and adept networking skills. As the market is flooded with competition, the quest for distinctiveness in deal flow management is paramount – making the need for a robust operational infrastructure for deal origination execution paramount.

Altvia’s comprehensive AIM CRM empowers dealmakers to seamlessly transition their key relationships into the digital realm. And by streamlining the management of key connections, AIM enhances efficiency and effectiveness in deal sourcing and execution. 

For more information on how Altvia’s AIM CRM and deal management software can help you source and win more deals, visit altvia.com/aim-crm.

Investor Relations Technology

Altvia and Passthrough’s innovative and first-of-its-kind integrated solution links data normally trapped in sub docs with Altvia’s AIM CRM via a powerful, custom integration, OnboardingBridge.

Investors expect a streamlined onboarding experience where they don’t need to provide duplicative information, while fund managers need real-time visibility into the status of their raise and a single source of truth for their teams. That’s what OnboardingBridge solves. 

A fund manager’s CRM needs to be a reliable, single source of truth for the whole firm to use the data in it to make smarter decisions. OnboardingBridge—the first integration that connects sub docs with a purpose-built CRM for private equity—means information normally trapped in a sub doc automatically updates Altvia’s AIM CRM in real-time, and vice versa.

OnboardingBridge allows fund managers to use data already in Altvia’s AIM CRM to prefill a subscription document, invite investors to the platform to complete their agreement, and once the new limited partners complete their documents, both the investor’s information and status are automatically updated. That investor’s data can also be reused when they reinvest in a future fund.

For more information about our streamlined LP onboarding solution, visit altvia.com/partnerships/passthrough.

We’re honored that The Drawdown Awards has chosen to recognize our industry-leading innovation!

Announcing the recipients of the 2024 Colorado Titan 100

Posted on April 2, 2024 by - Uncategorized

Originally posted on EIN Presswire
March 26th, 2024

Brie Aletto, President & CEO, Altvia, announced as a 2024 Colorado Titan 100.
Brie Aletto, President & CEO, Altvia, announced as a 2024 Colorado Titan 100.

Titan CEO and headline sponsor Wipfli LLP are pleased to announce Brie Aletto, President & CEO, Altvia, as a 2024 Colorado Titan 100. The Titan 100 program recognizes Colorado’s Top 100 CEOs & C-level executives. They are the area’s most accomplished business leaders in their industry using criteria that include demonstrating exceptional leadership, vision, and passion. Collectively the 2024 Colorado Titan 100 and their companies employ over 74,000 individuals and generate over $43 billion in annual revenues. This year’s honorees will be published in a limited-edition Titan 100 book and profiled exclusively online. They will be honored at an awards ceremony on May 30th, 2024, and will be given the opportunity to interact and connect multiple times throughout the year with their fellow Titans.

“The Titan 100 are changing the way that business is done in Colorado. These preeminent leaders have built a distinguished reputation that is unrivaled and preeminent in their field. We proudly recognize the Titan 100 for their efforts to shape the future of the Colorado business community. Their achievements create a profound impact that makes an extraordinary difference for their employees and clients across the nation.” says Jaime Zawmon, President of Titan CEO.

Brie Aletto, Altvia’s President and CEO brings over 15 years of experience as a seasoned SaaS executive in private equity-backed companies. Brie’s dynamic leadership, strategic foresight, and commitment to excellence in recruiting and developing top talent have contributed to their collective business execution and positioned Altvia as a frontrunner in the competitive landscape of SaaS solutions for private capital markets. Under Brie’s leadership, Altvia has seen noteworthy and sustained growth across various key metrics, reflecting the effective strategies and initiatives she and her team have implemented.

“As a CEO honored as a Titan 100, I am deeply humbled. This recognition reflects not just my own efforts, but the dedication of our entire team to lead with vision, integrity, and passion in Colorado’s business community. It’s a privilege to be part of driving positive change and progress in our industries.”

The annual Titan 100 awards celebration on May 30th, 2024, will be held at Magness Arena in Denver, CO. The home of champions, Magness Arena is a multi-use venue within the Ritchie Center. This unique cocktail-style awards event will gather 100 Titans of Industry for an evening unlike anything that exists in the Colorado business community.

“On behalf of all the partners and associates at Wipfli we congratulate all the Titan100 winners. It’s an honor to recognize this diverse group of leaders in the Colorado business community. We appreciate the lasting impact each leader has made, and continues to make, in building organizations of significance both here in Colorado and abroad. Your ingenuity and creativity have set you apart, and the honor of being seen as an industry Titan is richly deserved,” says Pete Aden, Partner at Wipfli.

The Power of 1,000+ Women: Key Takeaways from the Women’s Private Equity Summit

Posted on March 19, 2024 by - Private Equity Technology

The 2024 Women’s Private Equity Summit convened senior leaders across LPs, GPs, and advisors to the industry to explore the latest trends and strategies shaping the private equity landscape. As we reflect on the illuminating discussions from this year’s conference, distinct themes emerged, each offering valuable insights and guiding principles for navigating the evolving market dynamics. Keep reading to hear about our biggest takeaways.

1. Prioritize Value Creation Amidst Complexity.
In today’s evolving landscape, marked by challenging macroeconomic factors, the imperative to prioritize value creation has never been more pressing. With higher interest rates amplifying operational challenges, successful investment strategies must transcend reliance on valuation multiples. Instead, a comprehensive approach, integrating capital solutions with operational excellence is essential. Focusing on fundamental practices such as team prioritization, working capital optimization, and strategic M&A discipline were discussed as key levers to drive enduring value.

2. Think Outside The Box to Deliver Tailored Strategies.
In an era defined by fluctuating valuation uncertainties, creativity has emerged as a cornerstone of successful portfolio company management. Off-the-shelf solutions are no longer sufficient; instead, the ability to craft bespoke strategies tailored to specific challenges is paramount. Leveraging innovative instruments and structured solutions empowers investors to optimize capital structures and operational hurdles, fostering resilience and sustainable growth in portfolio companies.

3. Embracing NAV Loans as a Form of Liquidity.
A notable trend underscored at the Summit was the increasing prevalence of GPs leveraging NAV loans as a creative solution to provide their LPs with cash. With the challenging fundraising market and re-up rates at risk, GPs are looking at NAV loans to inject liquidity into their portfolio companies and to fill fundraising gaps. While some LPs may see this strategy as problematic, the general theme at the Summit was that GPs should be transparent with their LPs, as it shows creativity during a challenging market.

4. Follow Through On Your Execution Plan.
While formulating a robust investment strategy is crucial, achievement ultimately hinges on disciplined execution. Rigorous follow-through and early relationships ensures alignment with objectives and maximizes the potential for value realization and the right exit for companies. And given the intricate nature and multitude of variables involved, leveraging technology and AI tools facilitates monitoring performance and execution.

5. Harness AI as an Accelerator for Efficiency.
Unlocking the potential of generative AI presents unparalleled opportunities to enhance operational efficiency and drive strategic insights, for not only your firm, but also for portfolio company operations. By understanding the landscape of AI-driven tools, firms can help portfolio companies streamline processes, mitigate risks, and uncover latent value, enabling them to achieve more with limited resources.

6. LPs Have More Choice.
2023 saw limited distributions, and with many LPs relying on distributions to re-up with existing GPs or allocate to new managers, this led to a difficult fundraising environment. This has unsurprisingly shifted the power to LPs who can now wait to see how portfolios shape up or how the managers have fared during a difficult year. Summit attendee advice to GPs who are fundraising in 2024?

  1. Be realistic about fundraising targets and timelines. GPs who request extensions open themselves up to renegotiations, especially around management fees. 
  2. Identify what differentiates you as a manager and use that to engage LPs; whether it’s sector focus, management team, deals in the pipeline, LPs like to see a clear story. 
  3. First close discounts on management fees have become quite popular. LPs will put in the work to commit to first close for existing managers or those they have strong conviction about.

In summary, the prevailing sentiment at the 2024 Women’s Private Equity Summit was one of optimism. Despite challenges in the fundraising landscape, numerous LPs are embracing opportunistic approaches and seeking out GPs with not only a historical track record of successful returns, but also GPs who are being innovative and showing that they are being resilient through macroeconomic challenges. As you navigate the complexities of today’s market, we hope that these key insights serve as a guide to seize opportunities and navigate uncertainty with confidence and agility.

For more tips to navigate the evolving market dynamics, check out these resources: