For Private Equity firms that plan on fundraising, they will need the right technology

In order to be successful in raising a new fund, GPs must be able to engage their existing investors but also forge relationships with new investors for whom the fund would be a good fit. Historically, much of the work in a fundraise has been done in person, since personal connections and trust are fundamental to success in the private capital markets. In fact, not surprisingly, two-thirds of investors say they would prefer to work with a manager with whom they already have a relationship.

Unfortunately, the COVID-19 pandemic—with its lockdowns, travel restrictions, and health concerns—has dramatically altered the private capital landscape and stakeholders’ ability to meet in person. And, even as life starts returning to something closer to “normal,” it’s obvious that there will be lasting effects from the crisis.

Survey Shows Few Fund Managers Have the Technology They Need

Were firms prepared for this type of event, with private equity technology that would allow them to keep working effectively even when working remotely? Generally speaking, most were not.

In a survey of 120 fund managers in March 2020, PEI learned that of those who were planning to launch a new fund, just 17% expected no delay in doing so. This is a clear indication that at the time of the survey, managers did not have the technology to support remote working and their private capital market workflows.

Essential Technology for Fundraising Campaigns

As fund managers who were caught flat-footed by the pandemic scramble to adapt, they have become very aware of the tools they need to succeed amid the uncertainty of a global crisis. This includes:

  • A centralized, easily accessible contact information database

Firms that had been using spreadsheets and group emails to keep track of investor information have learned that that approach is especially ineffective when you have a dispersed workforce and you can’t just walk down the hall to talk with a colleague about a particular investor or fundraise.

As a fund manager, you need a CRM that’s designed specifically for use in this business. Altvia’s CRM solution, stores information on current and prospective investors and the campaigns that have targeted them in a way that makes data highly secure yet easy for authorized users to find and access. That data can then be used to answer questions like, “What are our highest-converting fundraising campaigns?” and “What are the characteristics of our most committed LPs?”

What are our highest-converting fundraising campaigns?

What are the characteristics of our most committed LPs?


What’s more, the system tracks the stages that fundraises progress through. This visibility makes it easier for teams to work together toward a common goal.

  • An advanced communication tool 

When a fundraise becomes a virtual process, you need more than a simple mass email tool. Your digital communications are replacing in-person interactions, so they have to be personalized, informative, engaging, and well-timed. Correspond Market Edition enables you to craft and send impactful emails quickly and efficiently to a segmented list of investors, in part thanks to tight integration with your AIM database.

The system also provides accurate, up-to-date information about your outreach efforts. Who has received your email? Who has opened it? How many people clicked on a link in the email? The answers to these questions guide you as you fine-tune your communications to maximize their effectiveness. Plus, Correspond has unsubscribe functionality that helps ensure compliance with the rules and regulations around emailing and spam.

  • A virtual data room/LP portal

In difficult times, being able to provide fast access to important files is more important than ever. A virtual data room and portal specially designed for this market, like ShareSecure, not only enables you to provide investors and potential investors with key documents, you can also use the platform to do things like posting promotional videos of your firm sharing the news about a new fund launching.

In addition, you can embed a dashboard that displays your firm’s track record so that current and prospective investors can obtain information about you in self-serve fashion whenever they have a need for it.

Implement Advanced Systems to Improve Fundraising Results
Equip your team with technology to better engage current and prospective investors. Download our free guide, Creating an Excellent Investor Experience below. This guide covers how the market-leading private equity firms are differentiating themselves with technology to attract top investors.