Fund managers’ ever-evolving regulatory and contractual obligations generate complex compliance requirements that can be simplified by technology focused on contract automation and intelligence.
“In recent years, we saw increased demand from our asset management clients for a technology tool that would make compliance with fund documentation simpler,” says Bridget Deiters, senior managing director & international lead at Ontra. “In March 2021, we launched Insight, a purpose-built software solution for fund managers, to address that demand and to help our customers track and manage their complex regulatory and contractual compliance obligations.”
Deiters also notes that compliance isn’t just a regulatory requirement but, rather, is an important piece of firms’ relationships with their limited partners. “GPs’ proactive compliance with fund documentation engenders trust and confidence among their LPs, bolstering investor relations,” says Deiters. “A failure to comply, on the other hand, can be extremely damaging in that respect.”
In addition to addressing complex fund obligations, Ontra highlights potential regulations by the U.S. Security and Exchange Commission (SEC), which may impact asset managers in the private equity space. “These regulations could require additional reporting requirements that would be difficult for asset managers to comply with without a system to track and manage their fund documentation,” comments Deiters. “We could also see limitations or restrictions on certain provisions in limited partnership agreements and side letters, which asset managers may need to address in their existing fund documents.”
Ontra’s solutions are specifically tailored for the needs of private asset management firms. The company’s service and tools enable fund managers to not only address existing regulations in a proactive way, but also to react to stricter regulations should they come into effect.
The growing volume of routine work is another concern. “Private equity firms have been facing higher volumes of routine legal work, such as non-disclosure agreements, release letters, and engagement letters,” explains Deiters. These routine legal tasks take up the valuable time of in-house lawyers and business professionals, pulling them away from the high-value tasks they should be focused on. Organisations are turning to Ontra’s contact automation and intelligence solutions to help alleviate this pressure.
In October 2021, Ontra closed a Series B funding round of approximately USD200 million from investors including Blackstone Growth. Over the coming year, Ontra will leverage this capital for structural growth, redoubling its investment in artificial intelligence and contract process automation and continuing to expand globally to serve its customers.