The private markets landscape is undergoing a significant shift. No longer the exclusive domain of institutions, opportunities are increasingly pursued by a wider spectrum of investors.
The projected impact of this trend is substantial, with global assets under management (AuM) for alternative funds predicted to exceed US$30tn by 2030, up from US$16.78tn in 2023 (Preqin).
This growth is creating a huge shift for asset managers and fund administrators. Outdated manual processes and legacy systems are now impeding scalability due to an inability to serve larger investor volumes.
The solution lies in innovative technologies that empower managers and administrators to grow by minimising operational complexity and overhead.
Operational bottlenecks in traditional private fund management
The typical journey of a new private fund investor relies on outdated methods, often involving physical documentation and manual data entry. This can lead to a lack of transparency and unnecessary delays. As a result, the investor experience suffers, and those managing this information face a growing workload.
For asset managers, the repercussions are tangible and impactful. Time-consuming manual onboarding diverts crucial resources away from core investment activities. Consider the onboarding timeline: KPMG surveys reveal that for 37% of asset manager respondents, onboarding a new investor takes 1-2 weeks. For 32% of investors, it takes 2-4 weeks. The complexity of this process is also widely acknowledged, with 50% of managers admitting the process is too intricate.
Managing diverse KYC/AML requirements and varying subscription processes across an expanding investor base introduces considerable operational complexity. Moreover, relying on manual workflows elevates the risk of errors, potentially leading to reputational damage for asset managers. Fund administrators similarly face increased reconciliation issues and compliance overhead.
As a fund’s investor base expands, operational teams face growing pressure. The consequences can be severe as a frustrating and lengthy onboarding experience can lead to higher investor drop-out rates.
Ultimately, a manual onboarding process creates an inconsistent and unsatisfactory experience, actively deterring potential investors and weakening established relationships. Streamlining this initial interaction is therefore vital to retaining capital and safeguarding fund reputation.
How innovative technology streamlines the investor experience
Fortunately, the emergence of innovative technology platforms directly addresses these inefficiencies. For example, at Goji, our platform fully digitises the investor journey from end-to-end, streamlining every step.
Asset managers are empowered to expand their reach with remarkable efficiency and simplicity. Fund administrators are equipped with the necessary tools to manage increased complexity and volume.
The table below outlines the key benefits of our platform across each step of the journey:
| Platform module | Key features | How this supports asset managers | How this supports fund administrators |
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| Investor onboarding |
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| Subscription management |
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| Data centralisation |
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| Digitised transactions |
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| Portfolio reporting |
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Expanding investor reach through connectivity and integration
The benefits of leveraging innovative technology extend beyond internal operational enhancements for asset managers. Some platforms can also unlock access to a significantly wider pool of prospective investors.
For distributors onboarding institutional investors, advanced technology can offer a number of benefits. For example, streamlined document storage and retrieval, a unified view of all capital calls for efficient management, and an overall enhanced client experience through digital accessibility and transparency.
For distributors aiming to onboard a large number of private wealth investors, technology helps to manage these high volumes effectively. By leveraging digital onboarding tools and streamlined processes, distributors can seamlessly connect ‘off-platform’ wealth investors to private market opportunities on-platform.
The enhancement of established infrastructures with modern technology can support these benefits. For example, as part of the Euroclear group, we can provide asset managers with access to Euroclear’s network of more than 3,000 distributors.
This seamless connectivity streamlines access to a truly global distribution network, enabling managers to tap into previously unreachable investor segments and jurisdictions with unprecedented ease.
Fund administrators, in turn, can offer their asset manager clients access to this expanded network, enhancing their service offering and strengthening client relationships.
On the topic of connectivity, many modern platforms are engineered for seamless integration with existing technologies using robust APIs and efficient data export capabilities.
At Goji, our API gives our clients a powerful digital channel to access and manage information on our platform. With seamless system-to-system integration between our platform and third-party platforms, manual re-keying or data transfers are eliminated and scalability is enhanced.
The strategic benefits of tech-driven scalability in private funds
By adopting and implementing tech-enabled solutions, both asset managers and fund administrators stand to gain substantial and lasting benefits as they navigate the evolving landscape of private markets.
Adoption of innovative technology leads to increases in operational efficiency and reductions in operational cost. Intelligent digitisation streamlines workflows and optimises the allocation of valuable internal resources.
Investors, in turn, experience a demonstrably improved and more intuitive journey, leading to greater overall satisfaction and the cultivation of stronger, more enduring relationships.
With agile technology, firms are empowered to adapt more effectively to evolving investor demands and increasingly complex regulatory requirements. Furthermore, the implementation of automated compliance checks and transparent audit trails fosters a more secure and compliant operational environment for all stakeholders.
Technology has the power to remove operational barriers and expand distribution capabilities for asset managers, while providing fund administrators with efficient tools for managing increased volumes and complexity. As a result, the strategic adoption of technology fuels sustainable growth in AuM and enhances service delivery.
Technology is no longer just a competitive advantage; it is a necessity. Managers and administrators who adopt innovative platforms are at the forefront of this transformation.
By adopting sophisticated digital infrastructures designed to achieve scale and streamline administration without the traditional struggles, all stakeholders can thrive in the ever-changing realm of private markets investments.
Ready to explore how our platform can transform your private fund operations? Reach out to organise a demo.