PARTNER CONTENT
Now is the time for private equity managers to invest in new systems. Managers can take advantage of the slower pace of transaction to set a software transition in motion. Ryan Keough, chief revenue officer at Allvue Systems, outlines the benefits of such a shift.
Can you outline the industry trends which have been driving growth and development within your firm over the past year?
Advancing private equity regulation has been contributing to the growth of our firm in the last few years. When more regulation is in place, access to data becomes more important than ever, and managers thrive with systems which are designed to ease their data collection, access, and analysis.
We’ve also seen LPs become increasingly eager for more data surrounding their private equity investments and market insights. This has driven managers to seek out systems that will better support their understanding of their fund and portfolio company data and their abilities to share this data with investors.
How have client needs and demands changed and what has your response been in terms of your service offering?
One core example of a changing client need is fund managers’ desire to simplify their back-office data pathway. For many, fully outsourcing or fully insourcing does indeed meet their needs. But there are others who struggle with certain elements of both.
For these fund managers, we’ve launched a co-sourcing option, allowing the fund manager to select Allvue’s back-office software while licensing a fund administrator from our network of firms to perform accounting and investor reporting activities on the manager’s own systems. This arrangement is also a win for our fund admin partners, who embrace the new line of business this approach opens up for them.
In what areas has your firm experienced the most significant growth?
Allvue has seen exciting growth among new and emerging private equity managers seeking out back-office software. Many are coming to us to replace more rudimentary solutions like Excel or Quickbooks now that they’ve hit a certain AUM or level of complexity with their investment strategy.
We’ve also seen a significant number of large GPs with a hodge-podge set of legacy systems inhibiting their ability to respond to the intensifying information needs of their investors and internal stakeholders. We work to help them establish a better data strategy and replace these legacy systems, empowering them to respond to the new realities of the market.
What is your outlook for the private equity space for the coming year and how is your firm best placed to support clients navigating the environment?
Private equity is facing a different outlook compared to the booming last few years. While the space is still forecasted to grow through 2027 at +10% per year, the marketplace has changed significantly. The firms that are agile will be able to respond to opportunities in the market. Part of being agile is having information systems that provide the data insights and system flexibility to support these opportunities.
Software migration is a considerable project. But managers can take advantage of this new environment to invest in their software and processes. Our firm offers a cloud-based, flexible end-to-end solution that allows you to add capabilities as you grow and as you need them.
What are some key learnings you are passing on to clients in the current environment?
Investors will only continue expecting more from their private equity fund managers – in terms of data, speed, investment products, ESG reporting, and beyond. To meet these growing expectations, managers will need the right technology and data strategy. With that in mind, now is the time to invest in new systems. While the migration process is a time and resource investment, moving off Excel or clunky on-prem software and onto cloud-based software that is integration friendly will change your business for the better. While private equity market conditions are in a lull, take the opportunity to invest in a new engine for your firm.
Finally, ESG’s influence on private equity will keep advancing worldwide. Just like growing investor expectations, a stronger ESG presence will require seamless access to your funds’ and portfolio companies’ data. Managers will want to be prepared with the right resources for this new push for sustainable investing and reporting.
Ryan Keough, Allvue Systems – Ryan Keough, chief revenue officer, has over 30 years of experience in running software businesses and sales teams. He was previously at Finastra and Misys in London, serving as EVP of International, responsible for all go-to-market teams and client facing activities for the EMEA and Asian Pacific territories. He was the Misys Global Head of Sales before the merger of Misys and D+H, and held leadership roles in Europe and the US for SunGard and GLTrade. He holds a Bachelor of Science degree from Cornell University and was a Captain in the US Army Reserves for 11 years.Â
