WILMINGTON, DE — A new study by CSC sheds light on the challenges and opportunities faced by private market fund managers. The report, Future Private Capital CFO 2025: Transforming Challenges into Opportunities, highlights the increasing need for advanced technology solutions, improved data accessibility, and strategies to address talent shortages.
The study revealed significant dissatisfaction among limited partners (LPs) regarding performance reporting. Nearly half (44%) of LPs report a lack of detailed investment-level data needed for informed decisions. Additionally, 74% of LPs expect live or daily updates on portfolio performance, while 72% demand similar access for operational metrics like NAV deadlines.
“Technology now plays a central role in discussions between GPs and LPs, far more than it did five or ten years ago,” said Liam McHugh, managing director of European Fund Administration at CSC. “Get the platform right, and you can get things like the data right. And if you get the data right, other areas, such as regulation, can become far easier to accommodate and capitalize on.”
General partners (GPs) are also responding to these demands by prioritizing technology investments. The study found that 63% of GPs plan to expand their technology frameworks, with 50% specifically targeting artificial intelligence (AI) to enhance efficiency, data management, and decision-making.
Outsourcing has also emerged as a strategic priority, with 51% of GPs indicating plans to expand outsourcing efforts. This trend is mirrored by LPs, with 70% stating that partnerships with reputable global service providers positively influence their perception of GPs.
“One of the biggest hurdles encountered by fund managers is streamlining data management, including centralizing and rationalizing the data they need to store,” said Marshall Saffer, managing director of Funds and Capital Markets at CSC. “Many firms struggle to find the internal resources to handle this effectively. That’s where CSC steps in, offering seamless support for administration, governance, and reporting requirements in a fully integrated technology environment.”
The study underscores the increasing complexity of private markets and the growing importance of technology and outsourcing in helping firms maintain a competitive edge while meeting rising investor expectations.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.