A new study by Intertrust, a leading global provider of high-value fund, trust and corporate services, has revealed that demand for greater transparency and increasingly complex reporting requirements has prompted General Partners (GPs) to adopt data management technology and digital reporting services.
The study, based on 142 private equity investors, has identified that almost three-quarters of investors (72 per cent) require GPs to provide enhanced levels of transparency around fee structures while over half (54 per cent) are seeking greater clarity on the performance of the underlying assets in individual portfolio companies.
The research highlights an increasing investor demand for GPs to apply data management technology to their reporting services. Indeed, over three-quarters (78 per cent) of private equity professionals expect to see Limited Partners (LPs) increasingly calling on GPs to provide them with real-time access to reporting and portfolio company data through digital portals.
More than half (51 per cent) of GPs have responded by implementing technology-based reporting solutions which provide LPs with anytime access to financial information via a dynamic portal, the survey has revealed.
Paul Lawrence, Global Head of Funds at Intertrust, says: “A growing wave of regulatory pressure is forcing private equity managers to rapidly adjust to more demanding investor reporting standards. The challenge faced by GPs to successfully raise capital and execute an investment strategy means that they will need to respond quickly to demand for greater transparency. Dealing with this challenge requires GPs to provide more granular detail on their investments, sometimes with real-time access. This increases the need to make an investment in their IT capability or look to alternative, outsourced, solutions.”
“Many GPs look to Intertrust to provide them with the tools and expertise required to address more demanding investor reporting standards. For example, we’re seeing a steep rise in enquiries among clients seeking to access our portal, Investran DX, which provides a sophisticated and multi-directional tool for sharing documents and data with investors and stakeholders.”
