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To help asset managers gain a competitive edge, part one of this two-part article details the current technology and data strategy trends in the private equity industry and the impact on organizational efficiencies via the use of data and technology. Part two of this series covers the common complexities of implementing new technology and mitigating potential challenges.

In recent years, many private equity and venture fund managers have explored ways to increase adaptability and enhance operational productivity within their management company operations. Forward-looking firms have recognized that fund growth leads to increased operational volume, complexity, and operating expenses.

While the ETF asset pool continues to grow (topping $7 trillion in the U.S. in 2021)1, advisers are also seeing increases in assets raised via Separately Managed Accounts (SMAs). With gross assets at $54 trillion in North America2 – ballooning SMAs have reached asset levels not seen since before the financial crisis. Investors are clearly noticing some of the advantages to these types of accounts. They receive customized strategies, often get a high level of personal attention from their money managers and have the ability to see all of their specific holdings in one statement.

Private equity fund accounting is quite complex to other investment vehicles.