Digital innovation as a PE Megatrend in the 2020 Preqin Global Private Equity & Venture Capital Report
Private Equity started the year with more cash than ever as 2019 closed with approximately $450 billion worth of PE deals, according to a recent article in Bloomberg. And while 2020 was on track to be another big year, Private Equity firms now need to reevaluate their fund administration strategy to be even better prepared now that novel coronavirus and stock market drops are dominating the news headlines.
With PE assets under management exceeding a record $4 trillion, successful fund managers need to keep abreast with not only the current events dominating the industry, but also increasing investor demands for greater transparency and ever-growing reporting complexity — all without disrupting their primary objective of managing the investment portfolio. In the world of private equity management, changes happen fast, and solutions need to keep pace.
The need for data analytics, live dashboards and cloud-based data control are necessary now more than ever to support and track rising valuations and intensifying competition. In fact, the 2020 Preqin Global Private Equity & Venture Capital Report listed digital innovation as one of five megatrends. Disruptive technologies such as AI, help fund managers improve operational efficiencies while creating new opportunities for investment, according to the overview.
Spending on technology will increase, as Private Equity firms expand operating capabilities and the depth of their sector expertise, according to a recently published EY report on how private equity firms are better prepared for an economic downturn than they were a decade ago.
NES Financial’s Private Equity Fund Administration solution utilize a uniquely scalable technology platform with built-in compliance, data security, automated reporting and enhanced transparency, which in turn yields greater efficiency, reduced operational risk and higher investor confidence, all of which free up time to focus on raising capital and making prudent investments.
The NES Financial Investor Portal built into our proprietary technology platform also provides investors with 24/7 access to fund status, capital account financial data and document sharing — decreasing the number of customized reporting requests that fund managers need to develop.
Technology will no doubt help private equity fund managers and their firms in 2020 improve operational efficiencies, provide investor transparency and meet their reporting needs.
If you’d like more information about our services, please don’t hesitate to contact us.