Private Equity Digitalisation


In the rapidly evolving private equity sector, the push towards digital transformation is not just a trend; it’s a fundamental shift reshaping how firms operate. As the industry grapples with complex structures and extensive data management, fundcraft is becoming a driving force in this revolution. This article explores the digital transformation in private equity and underscores how fundcraft is setting new standards for operations by providing a platform that empowers fund managers to drive their investment strategies with confidence and increase value creation.

The Digital Shift in Private Equity

The private equity industry, traditionally reliant on manual processes and face-to-face interactions, is now embracing digital solutions. According to EY Insights, private equity firms are increasingly leveraging digital tools for investor relations and reporting, deal sourcing and due diligence, portfolio monitoring, and value creation, reflecting a significant shift in the industry’s operational paradigm. This digital imperative is driven by the need for operational efficiencies, data-driven decision-making, and a competitive edge in a dynamic market.

A pressing need to mature digitisation

fundcraft has set itself apart in the private equity digital landscape through its platform, a comprehensive solution that goes beyond simple fund administration software. It brings together various aspects of alternative investment fund management into a single, cohesive digital environment and provides a centralised, single source of truth. This integrated approach is pivotal in addressing the multifaceted needs of private equity firms.

fundcraft’s unified platform consolidates the varied workflows, processes, and datasets of the ecosystem of operating partners and other key stakeholders. By seamlessly integrating essential processes such as reporting, accounting, legal and compliance, transfer agency, and portfolio management, fundcraft establishes a single source of truth that enhances clarity and streamlines operations. The platform’s multi-user capability grants real-time, fully controlled access to all stakeholders, promoting collaborative and transparent interactions. This enables a seamless, cohesive working environment where each partner’s contribution is synchronised, ensuring that the asset management back office is not just a collection of parts, but a connected, powerful whole.

Note 1: This pricing is based on the assumption of a €100m fund and a 10 year fund life.

Transforming Operations with Digital Solutions

The digital innovation within the private equity sector has been transformative, enhancing operational efficiency on a broad scale. Digital platforms automate a range of everyday tasks, including financial management activities like invoice processing and cash reconciliation, as well as ensuring rigorous adherence to KYC and AML regulations during client onboarding. Such automation allows private equity managers to focus more on strategic priorities, such as risk management and investor relations, thereby improving the potential for delivering robust investor returns and ensuring the growth and prosperity of their funds.

These digital solutions offer an integrated approach designed to address the complex regulatory compliance challenges faced by small and medium-sized funds operating across various jurisdictions and fund structures. Through intuitive interfaces, these platforms demystify the regulatory environment for private equity, incorporating services like Alternative Investment Fund Manager (AIFM) and central administration. Built-in compliance features streamline operations, facilitate swift and assured strategic decision-making, and reduce regulatory risks with access to real-time, consolidated, and reliable data.

Moreover, the advancement in fund management is propelled by powerful and dependable reporting tools provided by these platforms. Such tools convert intricate data sets into clear, actionable insights, automating the creation of custom reports essential for investor communication and regulatory compliance. Accurate and timely reporting ensures that fund managers remain well-informed and maintain control over their operations, while the availability of real-time data enhances decision-making processes. This elevated level of data access and analytical power represents a significant leap in fund management capabilities, fostering a dynamic and forward-thinking response to the evolving demands of the private equity industry.

Why digitisation matters more now

The Broader Impact of Digitalisation

The move towards digitalisation in private equity is not just about operational convenience; it’s about transforming the very fabric of the industry. Enhanced efficiency, better risk management, improved compliance, and superior investor experiences are just some of the benefits. With platforms like fundcraft, private equity firms can navigate the complexities of the modern financial landscape with greater ease and confidence and focus on what they do best.

The upward trajectory of digital transformation within private equity signals an accelerated adoption of advanced technologies. As AI and other innovative technologies continue to advance, they promise to enhance investment strategies and streamline operational processes even further. API connectors facilitate seamless integration with existing systems, a wider ecosystem of best of breed applications and cutting-edge technologies, but not everyone has access to them.

fundcraft has public APIs and takes the approach of wanting to provide a platform for best-in-breed solutions. This inherent flexibility and interoperability ensure that fundcraft’s digital infrastructure for asset managers not only adapts to but also drives the seamless incorporation of next generation technologies. By doing so, it positions private asset firms to stay ahead in the industry’s rapid evolution, leveraging innovation for optimised performance and competitive advantage.

The digital transformation in private equity, spearheaded by innovators like fundcraft, is redefining the industry. By embracing digital solutions, private equity firms are unlocking new potential, enhancing their operational efficiency, and making more informed investment decisions. As the industry continues its digital journey, the role of technology in shaping its future remains more significant than ever. In this rapidly changing landscape, fundcraft’s digital platform stands as a beacon, guiding firms towards a more efficient, transparent, and data-driven future in asset management.

To learn more about fundcraft or to schedule a demo, get in touch and kickstart your journey to simpler operations, enhanced compliance, and exponential growth.

Stat Sources: 1) Strategy& (PWC), Cost and growth in Asset Management; 2) Accenture, The future of Asset Management; 3) McKinsey, How asset managers can create strategic distance with technology; 4) BCG, Global Asset Management 2023; Deloitte, 2023 Investment Management Outlook; EY, Reframing Asset Management  7) EY report, Impact of digital technologies on asset servicers,  8) Coller Capital’s Winter 2022-23 Global Private Equity Barometer