In a new research study published According to a release, the challenges for many of these firms, says
The firm noted that to assess the current approach PE firms use to manage data, Tabb surveyed 119 senior PE executives across the U.S.,
Additionally, with many PE firms currently underperforming, facing a shift in power from GPs to limited partners (LPs) - some large PE firms service hundreds of LPs - and a competitive fundraising landscape, Sussman says their interest in data transparency and accuracy demonstrate the importance of data management in four key areas:
-Investment Decisions: more than one in four firms believe that achieving their data management objectives will result in at least considerable improvement to the quality of their investment decision- making
-Investor Reporting: only 23 percent currently provide access to interactive investor reporting, although 70 percent flag its importance to do so; 33 percent claim that producing on-demand performance reports is challenging
-Operational Efficiency: 67 percent see operational efficiency as the most important goal of their investment-management platform
-Regulatory Compliance: regulatory reporting poses a significant challenge for 39 percent of the firms; only 25 percent believe they have the necessary system integration
As improvements are made and benefits accrue to the LPs, Sussman believes the PE industry will prosper. "When LPs can more easily compare the performance and performance attribution of various GPs, the competition for assets can become more targeted at specific areas of value and differentiation. Allocations to private equity could see even further increases as some of the limitations of the asset class are resolved. A virtuous cycle of efficiency and transparency yields greater investor confidence, lower cost-to- income ratios and a stronger competitive environment. These will be the just rewards for PE firms that not only make the right investment decisions, but also the right investments in their own business."
The 15-page study with 15 exhibits is available for download through a SunGard registration page, http://bit.ly/1c8fiKr. It can also be downloaded by
SunGard is a software and technology services company.
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In a new research study published
According to a release, the challenges for many of these firms, says