Accurate data and analysis determine investment success
CEPRES: Best Data Management Solution – Demand for rigorous and in-depth analysis of complex investment strategies is growing exponentially as more capital is allocated to private markets. In this environment, access to accurate data down to single asset levels is critical to support insightful analysis, and investors with this access can achieve better investment outcomes and possess a distinct advantage.
“Different industries can differ heavily in their risk/return outcomes and various private equity strategies will deliver varying degrees of success,” comments Dr Daniel Schmidt, CEO & Founder at CEPRES. “Only those with access to the right data and investment analytics will be able to effectively navigate this evolving and challenging investment environment”.
In the wake of the Covid-19 pandemic, more insight driven portfolio decision management, based on granular, asset-level data evolved from a nice-to-have to a must-have almost overnight. “The understanding of how operational developments of portfolio companies were impacted by Covid and the effect on future investment outcomes became highly relevant to all investors. This is especially true for fund investors who are indirectly exposed to thousands of companies through the funds they invest in,” underscores Schmidt.
Over the course of this year, front- and mid-office departments close to the investment office (e.g. strategic asset allocation, risk management and regulators) demanded more detailed analyses based on this look-through. “Investors, who did not have the corresponding data access, were flying blind, looking through a dirty window and not sure if they could be heading towards a crash situation. They lacked transparency to truly understand how Covid would impact their current portfolio and how best to manage future allocation decisions. Meanwhile investors running their investment operations on CEPRES were well prepared because they already had full transparency and up to date accurate data and predictive models to quickly make decisions,” Schmidt highlights.
The need for data and technology will only become more pronounced, as the asset class continues to grow. He continues: “Since the private markets asset class has become a significant part of their AUM, institutional investors as limited partners (LPs) need to apply more active portfolio management to help protect their investment decisions, rather than only traditional portfolio monitoring reporting overviews.
“Investment professionals in these organisations are highly skilled, but often under-resourced relative to the AUM they manage. Fast and accurate access to their data and targeted, integrated investment technology empowers them to meet increasing demands from internal and external stakeholders. This in turn helps them be more effective and grow their careers by leveraging technology to smooth the path to increasing allocations.”
CEPRES is constantly enhancing their data management technology while also improving data access for its investor clients. Better data is the differentiating factor but Schmidt also highlights: “Building intelligence of how to analyse those data to drive investment decisions in the right direction is another pillar of our business. We enrich our portfolio management and due diligence solutions with analytical power that transform accurate, but raw data into true investment decision knowledge.”
CEPRES was founded on the vision to empower private market professionals to make better investment decisions through technology and better data access. The firm’s mission is to provide investors, the best solutions built on our secure data network to make informed decisions about their current portfolios and uncover new investment opportunities that lead to better investment outcomes.
Dr Daniel Schmidt, CEO, CEPRES
Daniel Schmidt is the CEO and Founder of CEPRES. He has more than 20 years experience in private equity investing and corporate business development. Before founding CEPRES, Daniel served as Managing Director at Deutsche Bank Private Equity Partners and led the buyout of CEPRES from Deutsche Bank in 2010.