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Posted Apr 11, 2024

The importance of data governance across the investment lifecycle

Data Governance Blog 2x

By 2026, the private investment industry is expected to reach $24 trillion in assets under management (AUM), according to Preqin. Yet, in many cases, GPs struggle with internal silos and information gaps at every stage of the investment lifecycle, causing slowdowns and confusion, critical reporting errors, and more. Instead of relying on Excel spreadsheets, Outlook inboxes, and standalone tools to manage increasingly complex fund structures. GPs need an integrated solution for data governance that supports the multi-pronged processes across finance and investor relations teams.

Fundraising should, and can, be a seamless experience for both GPs and LPs. But manual systems and document-only data rooms make proper data governance during fundraising and onboarding practically impossible. A modern solution that includes dynamic data rooms, digital subscription documents, and fundraising dashboards can deliver a frictionless fundraising and onboarding experience, increasing accuracy, efficiency, simplicity, and speed for all investment partners.

Successful investor management relies on the GP’s ability to meet their LPs’ needs for timely, accurate information and customized reports. Yet, given that around half of LP respondents in a recent Intralinks survey said that overall GP transparency levels are insufficient, many firms struggle to deliver accurate, timely information due to poor governance. A secure and control-rich solution provides a shared and consistent view of partnership information, streamlining a GPs efforts to model complex investment structures and waterfalls, call and distribute capital, calculate performance metrics, and generate and disseminate investor statements and reports.

Proper fund administration requires GPs to meet demands for data accuracy and timeliness from various stakeholders. Modern fund administration solutions use good data governance to provide comprehensive accounting, reporting, and treasury services, allowing GPs to scale using coordinated data streams, delight investors with timely and accurate reporting, and meet ever-evolving compliance requirements.

Good data governance—powered by a purpose-built and integrated system—ultimately helps GPs break down internal silos, improve efficiency, and provide accurate and up-to-date information for all stakeholders across the investment lifecycle. Investing in a single source of truth allows a fund manager to raise more capital, streamline investor management operations, and ensure the consistency of the investor ledger and fund performance metrics.

Download the full whitepaper to learn more about the power of good data governance→