Sixty per cent of Limited Partner (LP) respondents surveyed in the Brackendale Private Equity Technology LP Sentiment Survey H1 2022, produced in association with AssetMetrix, said that they would be more likely to consider allocating to a fund, if the fund manager had a tech-enabled partner to outsource their middle and back-office activities to.
Sixty per cent of Limited Partner (LP) respondents surveyed in the Brackendale Private Equity Technology LP Sentiment Survey H1 2022, produced in association with AssetMetrix, said that they would be more likely to consider allocating to a fund, if the fund manager had a tech-enabled partner to outsource their middle and back-office activities to.
The key challenges that LP investors face include finding the ability to efficiently aggregate data, provisions of ESG metrics, and the specific reporting requirements. These requirements include ESG and co-investment specific reporting, according to comments made by surveyed LPs.
A slim 17 per cent of LP respondents stated that they receive responses to ad-hoc requests within a day of the request. Some 68 per cent of respondents also stated that this time is at least partially reliant on manual processes within their GP/LP relationship. This disconnect between LP investor and GP investment managers shows that GPs continue to struggle to handle, analyse, and emit data without external support.
When asked about how they planned to manage pressure to fulfil stringent reporting requirements, 66 per cent of LPs placed the onus on their GP counterparts. A small contingent of LPs, some 17 per cent, are committed to allocating more resources in-house to deal with requirements across their private capital portfolio.
When surveyed on technology platforms that would be of use to monitor investments, 77 per cent of respondents cited the ability to view an entire portfolio with a consistent and clear view of investments. Some 69 per cent also found the ability to slice, dice, and filter data to be of use. Other aspects stated as useful include access to customised reporting portals at all times of the day, and access to a single point of truth for all relevant data.
