Private debt is in a position of strength as the world embraces the post-COVID recovery with momentum. Now presented with untapped areas of opportunity, fund managers must conquer the operational challenges standing in the way of maximizing their returns.
Addressing this, our recent webinar with LPGP Connect detailed how GPs can use technology and digital-first managed services to increase transparency, reporting and monitoring. In the webinar, Indus Valley Partners’ (IVP) CEO Gurvinder Singh examined the current landscape and growing attractiveness of the asset class as funds entered the year with a record store of dry powder. However, Singh pointed to one overarching challenge, “Fundamentally, [managers] are being asked to evaluate deals faster, and most of them have ended up with what we call ‘broad islands of technology’ that are not connected.”
Coupled with this use of fragmented platforms and workflows, managers are also facing a number of other hurdles – from rising LP expectations and continuing cost pressures to bespoke deals and reporting difficulties. Further amplifying these challenges, Excel-driven processes underpinning key functions from the front-to-back office are becoming increasingly more time consuming, error-prone and inflexible. As a result, managers have identified technology and digital-first managed services as the key to unlocking new efficiencies that help them scale their business more easily and attract new AUM.