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Cybersecurity, ESG challenges loom large, Crestbridge survey shows

Cybersecurity, ESG and compliance are among the key challenges facing the fund management industry, according to a wide-ranging survey by private equity and real estate capital administrator Crestbridge.

The study found that hot topics for investors during the fundraising due diligence process were cybersecurity (71.43%) and ESG (57.14%), as reported by fund managers from a cross-section of alternative asset classes who participated in the survey.

Compliance and regulatory support was also a concern for 46.15% of survey participants.

Achieving operational efficiency – such as streamlining processes, improving communication within the business and finding ways to reduce costs – was cited as a challenge by over a fifth (21.43%) of respondents. Other challenges mentioned in the survey include managing data for both the business and investors (14.29%), keeping up with technological innovation (14.29%) and regulation and compliance (14.29%).

The biggest internal challenge faced by managers in running their funds is sourcing and retaining talent, with over a third (35.71%) citing this as an issue for them. The report noted that while the Great Resignation began around 2021, fund managers still expect this to be an issue through 2023.

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