The domain of private equity is marked by increased competition, as spurred by growth of capital, the emergence of new markets, the rise in the number of players, as well as tightened regulation.
To be able to stay ahead in the game, private equity management firms need to be armed with the following sound strategies:
Devote more resources towards understanding new or reformed policies. New protocols or policy reforms are being implemented left and right, and it would do well for fund managers to try to understand their repercussions. Some firms make the mistake of treating compliance as an afterthought, in their bid not to allow it to change the way they do business. But the best and most sustainable way to go about it is to seamlessly integrate it in all stages of the company’s operations. Automation of reporting and audit processes is key, along with a step-by-step compliance monitoring. It’s also important to look closely at how tax reform is being discussed within and outside the industry, and contribute to voices that will promote the standing of private equity business in this aspect.
Consider asset servicing. Private equity management firms need to save every resource they have towards successful steering acquired companies to profitable operations – in levels that will mean high yields for the investors. Enlisting the services of outsourcing partners will greatly help them free up precious manpower and budget, while being able to access first-rate support. The best asset servicing firms possess advanced tools for accomplishing middle and back office functions, including portfolio management systems. They also maintain a pool of professionals who are experienced in these tasks.
Pay attention to cybersecurity. Promoting cybersecurity is no longer just an option to private equity these days. In the age of cyberattacks, it is crucial that asset managers guard themselves against efforts to cull sensitive information that may compromise their business operations at various fronts. Cloud-based data warehousing is fast becoming the way of the future for all fund management businesses, and it poses challenges as regards keeping data accessible only to the right parties. By making more investment towards cybersecurity, not only do firms protect their valuable business data. They also protect the company’s reputation, which in turn boosts the confidence of all prospective client-investors.
By keeping abreast of these pointers, private equity firms are set to generate optimum returns – a win for the client-investors, the fund manager, and the industry.
To be able to stay ahead in the game, private equity management firms need to be armed with the following sound strategies:
Devote more resources towards understanding new or reformed policies. New protocols or policy reforms are being implemented left and right, and it would do well for fund managers to try to understand their repercussions. Some firms make the mistake of treating compliance as an afterthought, in their bid not to allow it to change the way they do business. But the best and most sustainable way to go about it is to seamlessly integrate it in all stages of the company’s operations. Automation of reporting and audit processes is key, along with a step-by-step compliance monitoring. It’s also important to look closely at how tax reform is being discussed within and outside the industry, and contribute to voices that will promote the standing of private equity business in this aspect.
Consider asset servicing. Private equity management firms need to save every resource they have towards successful steering acquired companies to profitable operations – in levels that will mean high yields for the investors. Enlisting the services of outsourcing partners will greatly help them free up precious manpower and budget, while being able to access first-rate support. The best asset servicing firms possess advanced tools for accomplishing middle and back office functions, including portfolio management systems. They also maintain a pool of professionals who are experienced in these tasks.
Pay attention to cybersecurity. Promoting cybersecurity is no longer just an option to private equity these days. In the age of cyberattacks, it is crucial that asset managers guard themselves against efforts to cull sensitive information that may compromise their business operations at various fronts. Cloud-based data warehousing is fast becoming the way of the future for all fund management businesses, and it poses challenges as regards keeping data accessible only to the right parties. By making more investment towards cybersecurity, not only do firms protect their valuable business data. They also protect the company’s reputation, which in turn boosts the confidence of all prospective client-investors.
By keeping abreast of these pointers, private equity firms are set to generate optimum returns – a win for the client-investors, the fund manager, and the industry.
