Posted on 02 May 2023

Can data technology deliver better-performing private equity funds?


Automation and AI have the potential to improve operations across private equity funds, freeing up teams from repetitive manual work to spend more time on value-add tasks. But how do these improvements translate into more informed decisions for fund managers and investors?

Tim Toska, Group Sector Head of Private Equity here at Alter Domus, recently spoke with Preqin about the potential offered by the latest technology to support operational improvements. The article, “Data management, extraction, and visualization: helping GPs to make timely, effective decisions” can be found in their latest quarterly update, Private Equity Q1 2023.

“Tasks such as downloading and processing external documents, KYC checks, payment initiations, accounting entries, and waterfall calculations are ripe for improvement by automation, outsourcing, or a combination of both.” Tim explains. “This allows managers to take advantage of the digital providers specialized in making organizations as efficient as possible… providing employees with the capacity to focus on additional value-add tasks that have a greater impact.”

But fund, buyout and growth managers also need to extract, standardize, manage and interpret data efficiently if they are to better identify investment opportunities for their investors.

“A comprehensive data management solution for any size fund manager would allow for better, more consistent, and informed decision-making… and better monitoring of metrics at firm, fund, and investment level.”

Read the full article by downloading the PDF below, or read it on the Preqin website (subscription required).