There’s one thing today that’s clear about the expectations of LPs: They want more transparency from their managers. According to Preqin in its Investor Outlook for Alternative Assets report, private equity investors rank transparency as their third most important issue. It trails only regulation and fees—their first and second focus areas respectively. The increasing investor appetite for the asset class is well documented, so this demand for transparency can’t be ignored. But why is this the case and what does it mean for firms and the fund management software they use?
Growing Wealth and Fund Management Software
According to the Forbes billionaire list, the number of extremely wealthy individuals in the world is increasing at a record pace. It’s no surprise, then, that family offices are among the fastest-growing investor category in private equity.
And these two facts seem to be correlated. Wealthy individuals increasingly are “institutionalizing” their wealth, hiring professional investment managers to invest their money, and looking to alternative assets for outsized returns.
At the same time, institutional investors continue to grow their investment teams, and most are expecting to increase their allocations to the asset class.
Tapping Into Trends and Responding With Advanced Fund Management Software
What are some of the results of the trends cited above? We’re seeing growing sophistication in family offices and many new faces at institutional LPs working on due diligence activities.
And as organizations look to expand their operations, they want to do so carefully. That means they’re requiring a bettering understanding of the commitments they’re making and more transparency. In fact, it’s safe to say that transparency is at the top of their list.
Fortunately, advanced fund management software can provide it.
Fund Management Software Enables Transparency
For managers who want to be more transparent with investors, the question often is, “How do we do that?” They’re fully in favor of the concept, they’re just not sure about the execution.
That’s where purpose-built fund management software comes in. At Altvia, our solutions are created and enhanced not only with our team’s collective decades of investing experience but also with input from countless managers and firms through the years. Knowing what they want and need, and responding to those expectations, has always driven our product development.
Consequently, our platform greatly simplifies and streamlines interactions between managers and stakeholders. Not only does it provide more information, but it also enables fast, efficient, intuitive access to that information, giving stakeholders the confidence that they’re seeing the “big picture” and not being left in the dark about anything.
Get a Demo of Advanced Fund Management Software
What does enhanced data access and transparency look like in real-world scenarios? The best way to find out is to participate in a live demo.