The Alternative Investments industry has grown exponentially over the past decade. This growth has accelerated business and system complexity. Alternative investment firms have expanded across asset classes and are facing added system integration complexities, compliance measures and increased requirements for LPs (Limited Partners).
With investors expecting improved reporting across multiple channels, compliance and regulatory requirements becoming more rigorous, enhanced operational efficiency is required. Regulations such as AIFMD, IFRS 17, SFDR and other directives require changes to systems, distribution, communication and reporting requirements. A growing scrutiny of fees urges fund managers to focus on operational efficiency.
As a result, Alternative Investment managers need to rethink their approach to (enterprise) architecture, information systems and data management. On the business side, they are pursuing new approaches to optimise profitability, manage costs and enhance their decision-making and compliance capabilities, including sophisticated data and analytics techniques.
What ́s more, Alternative Investment firms -as well as the wider Financial Services sector are coping with data privacy and data security challenges alongside a move to the cloud or hybrid environments. With complexity mounting, the COVID-19 pandemic continues to wreak havoc across the globe, causing disruption to the industry across Europe, with deal-making and fundraising being impacted.
“Against this backdrop, this whitepaper addresses the main challenges in IT and data migration for Alternative Investment managers”, making the case for investing in innovation and suggests priority areas for solutions.