FS Domos is a client of Business Reporter.
Digitalisation can play a big part in the success of all alternative investments, whether for private equity, infrastructure, real estate, or funds of funds
Individuals in the realm of finance and financial reporting must prioritize implementing advanced software solutions, as it is not simply a technological advancement but a crucial strategic decision. The seamless incorporation of these solutions leads to increased efficiency, streamlined processes, and facilitates progress towards goals.
This holds even more validity when it comes to alternative investments: according to market analysts, the market is predicted to surpass $23 trillion by 2026. This translates to a larger number of transactions, a possible rise in intricacy, and a change in necessary financial data.
Another important consideration is the need to address the current unstable economic conditions, which are characterized by high levels of volatility and inflation. When reliable investment options like traditional open-ended liquid funds face challenges, investors begin to search for alternative options. Institutional investors, in particular, are turning to private assets in order to diversify their portfolios and achieve higher returns while mitigating external factors. However, these investors come with their own specific requirements and expectations, often requesting timely and comprehensive reports with the ability to drill down for more detailed information. Data has become a crucial factor in determining success or failure, and is also a source of stress for finance professionals who must quickly process, analyze and report under pressure.
We should recognize the current private investors, also known as retail investors, who are increasingly interested in the potential of alternative funds. Their involvement is consistently rising due to options like European Long-Term Investment Funds (ELTIFs). Alternative investments have unique traits in terms of regulatory reporting, frequency, and quantities.
To summarize, the current interest in private equity and the increased accessibility of these investments indicate a shift in the investor market and potential for growth in the industry. However, along with opportunities, there are also specific obstacles for those involved, such as general partners, fund administrators, and depositaries.
Technology is key
The concept that data is crucial and the ability to manipulate, segment, and analyze records is the driving force behind an organization’s success has been around for some time. However, integrating technology requires careful consideration and a thorough understanding of the operational changes involved before implementation. Managing unstructured data (such as emails, PDF documents, and spreadsheets), transitioning from manual to automated processes, and digitizing a large number of legal documents are all crucial elements of navigating this complex market. Furthermore, ensuring a seamless customer experience during the onboarding process for new investors and providing a comprehensive overview of fund performance, risk analysis, and exposure is vital. All of these features should be readily available in real-time with secure and unlimited access to data.
To avoid interruptions in the value chain and reduce obstacles, choosing a specialized software-as-a-service (SaaS) platform for alternative options built on open technology may be the best decision. This option allows for effortless updates and guarantees the flexibility of the solution being implemented. Additionally, it enables integration with other solutions through APIs, creating opportunities for cooperation and advancement. From a business standpoint, this connectivity empowers fund providers to potentially introduce new services, strengthening their ability to adapt and compete in this ever-changing market.
Building true partnerships
The success of a software platform goes beyond just installing it. A well-planned strategy must be implemented, taking into account the specific needs and complexities of the organization. The alternative technology market does not have a one-size-fits-all solution, so careful planning and collaboration are necessary for a smooth transition from old systems to the new solution. Technology vendors now play a crucial role as agents of change, balancing the IT needs with the business requirements of their clients. Providing value is of utmost importance at every stage, from choosing the right software to helping clients become comfortable with using it. Ongoing, efficient support after implementation is essential for promoting a culture of continuous operational excellence.
Technology is designed to propel efficiencies and provide the competitive edge organisations require, yet its true power unfolds in the genuine partnership between the client and the software provider. The objective is to equip investment funds with cutting-edge technological capabilities for informed data-driven decision making, but also to fortify their resilience in an ever-evolving landscape. This collaboration presents vast opportunities for improved risk-adjusted returns, the introduction of innovative products and even the prospect of reinventing traditional business models. The synergy between client and software provider becomes the catalyst for navigating and thriving in the dynamic sector of alternative investments.
Domos FS is a company that focuses on fundtech services and specializes in managing alternative investment funds (AIF) such as private equity, real estate, infrastructure, debt, and fund-of-fund assets. Their platform, Domos, aids in the process of fundraising and managing relationships with investors. It also automates various tasks, organizes data, and streamlines fund reporting. This SaaS solution is modular and covers the entire operational process, from onboarding investors to monitoring portfolios, complying with regulations, managing risks, handling fund accounting, and conducting data analysis. For more information, please visit domosfs.com.
By Mireille Wagner, Marketing & Communications Manager, Domos FS
Source: independent.co.uk
