Better together: A collaborative approach to data collection analysis and reporting is key for GPs and LPs alike

As a technology platform trusted by a network of interconnected firms facilitating a centralised and collaborative exchange of data, DiligenceVault sits at the centre of sourcing, due diligence and monitoring interaction between LPs, GPs, and their portfolio companies, says founder and CEO Monel Amin…

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As a technology platform trusted by a network of interconnected firms facilitating a centralised and collaborative exchange of data, DiligenceVault sits at the centre of sourcing, due diligence and monitoring interaction between LPs, GPs, and their portfolio companies, says founder and CEO Monel Amin…

Can you outline the industry trends which have been driving growth and development within your firm over the past year?

Private capital investors have a transformative challenge ahead of them – prioritizing product innovation, risk-based due diligence in an uncertain environment, and a laser focus on value creation. To rise to this challenge, firms are tasked with capturing the right data to back these initiatives. This is further increasing the allocation of budgets towards digital transformation that deliver actionable insights and also execute on key requirements around ESG/DEI, and risk mitigations around cybersecurity and regulatory controls. DiligenceVault’s product offering and continued growth are both a reflection of this industry trend. At DiligenceVault, we sit in the middle of the interaction between LPs, GPs, and portfolio companies when it comes to creating a centralized data collection and analysis platform that serves as a digital backstop for today’s data priorities.

Do you see the industry changing fundamentally over the course of the medium to long term? Are there any trends which have been given over-inflated importance?

Clients have been rightly focusing on creating a digital work environment that solves a lot of their near-term collaboration and workflow problems and delivers operational efficiency, but ultimately will pivot the focus on data to back resilient growth and value creation initiatives. It’s exciting for us to see many of our clients transition from offline Excel-managed processes to now trusting the power of our technology to help unlock the data and automation potential.

What is your outlook for the private equity space for the coming year and how is your firm best placed to support clients navigate the environment?

There has been a tremendous shift in exit outcomes, deal-making and fundraising dynamics for private capital investors, with LPs working through allocation challenges, and a renewed focus on diligence and operational efficiency.

At DiligenceVault, we help investors make better informed decisions, faster, by empowering them to collect clean, usable data that they can trust. Our platform streamlines the data capture from 13,000+ GPs and asset managers, speeds up analysis and risk monitoring, and ultimately, client reporting.

Given DiligenceVault is an interconnected network of firms that enables centralized data exchange, it provides a valuable capability for Investor Relations teams to house their data, documents and diligence content, collaborate with internal stakeholders, reuse their diligence responses across multiple investor data requests, RFPs and DDQs and most importantly deliver a responsive client experience during fundraising and LP engagement cycles. Winning the best ODD solution award is a fantastic testimonial to the work we do in this area in particular.

Can you list three key learnings you are passing on to clients in the current environment?

• In the current market conditions, budgets are shrinking and decision cycles are extending, but the net positive is that it also helps us as a technology partner win high-quality partnerships with LPs and GPs who are intentional about their digital strategy.
• Data is critical to decision making and having the right tool makes the difference. Let’s take the SVB crisis as an example. We observed numerous clients using our technology to quickly capture their exposures to any potential fallout from the crisis. DiligenceVault’s unique advantage comes from the network power it has created, which ensures data is flowing from over 13,000 firms, which cannot be replicated easily by only data capture and survey technology alone.
• Shifts in technology happen in step functions. Let’s take OpenAI applications as an example. While there’s active debate about true applications and risks in the open data ecosystem, there’s no denying the fact that these LLM advancements will have a tremendous impact on the industry in terms of research, analysis and presentation. The firms which have a technology strategy will be able to accelerate adoption of technological innovation vs those firms that are accumulating technology debt and are still to formulate their digital strategies.

Monel Amin, founder & CEO, DiligenceVault – Monel is the founder & CEO of DiligenceVault, a digital diligence platform for the investment management industry. Prior to founding the firm, she was head of risk for liquid investments at Citi with oversight for hedge funds, pensions, insurance and fund of funds businesses. She holds an MBA from Carnegie Mellon University and a Bachelor of Engineering from Birla Vishwakarma Mahavidyalaya, India.