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Global survey of private equity fund managers has the US highest in the use and understanding of blockchain, while Europe ranks best in the use of big data

Published: Oct 26, 2021 at 7:00 AM EDT|Updated: 1 hour ago

LONDON, Oct 26, 2021 / PRNewswire / – Today Intertrust NV (“Intertrust Group” or “Company”) [Euronext: INTER], a leading global provider of specialized administration services to clients in over 30 countries, released the results of a global survey that showed that private equity funds want to prioritize investments in blockchain and big data over automation and machine learning by 2026. The Intertrust Group worked with some of the largest funds in the world to collect this information, and found that the size of the fund’s assets and knowledge of new technologies influenced whether funds would make such investments in innovation.

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Intertrust Group’s report, titled “The Future of Fund Technology,” is part two in a series on evolving needs in the private capital funds industry, which includes private equity, debt, real estate and more.

The full report, including data and expert insights from the Intertrust Group, is available here along with the previous report “The Future Private Capital CFO: Evolving in a Digital Age” on the Intertrust Group website.

“We have immersed ourselves in this technology-driven state of the private capital industry to better understand how various global markets interpret and apply new fund management technology,” said Chitra Baskar, Chief Operating Officer and Global Head of Funds & Product at the Intertrust Group. “As respondents from some of the largest funds in the world raise critical operational issues that can be resolved with a deeper understanding and investment in technology, we hope that research will help our clients find ways to better streamline their day Fund management – from regulatory upkeep to investor relations and everything in between. “

The Intertrust Group spoke to more than 300 high-level decision makers such as CEOs, CFOs and CTOs who worked for private corporations or private funds $ 250 million to more than $ 3 billion in AUM.

Focus on important findings

  • The US is lagging behind and relies on manual processes more than most: 42% of respondents in the US said most of their processes are still manual, while the UK and Europe rely more on automation.
  • Great Britain and Asia Cite Automation as Vital Long– Term: Great Britain and Asia Respondents said the adoption of increased automation and new technology over the next five years will be critical to giving their funds a competitive advantage.
  • Europe I’ll wait and see when it comes to funding technology: 53% of European respondents plan to introduce new technologies once they have been on the market for a while (and not right away).
  • In Asia, Market conditions and regulatory issues are serious barriers to entry: Aside from cost and budgeting, market pressures and the regulatory environment are the two biggest global barriers to entry when fund managers consider new technologies. Above all, Asia Markets keep a close eye on the changing regulatory environment and quote it as “[posing] a constant threat. “
  • Big data and blockchain rule supreme: The majority of respondents saw big data and blockchain as the most important technology tools. In addition, 46% see blockchain or distributed ledger (DLT) technology as the most important for the future of fund management in the next five years and 37% name big data.
  • The rationale for technical investments is not universal: a total of 62% of those surveyed plan to increase investments in automation and new technologies in the next two years. Yet Europe (59%) and larger funds (54%) with more than $ 1 billion in Assets plan to use new technologies to support investor relations and reporting, while the US focuses technology investments on portfolio business intelligence (47%).
  • Fund administrators rely less on internal operations: Most respondents (43%) currently rely on external administrators (TPAs) to handle all fund-related administrative work and only contact their company for selected activities. Across all countries, the average number of TPAs ​​used is two, while funds with more than $ 1 billion in assets usually use three.

Baskar added, “These results make it clear that the adoption of new technology, and all of the associated costs and learning curves, are challenging for many private funds to optimize their business by taking into account the latest technological innovations. It is our job as a global management partner to ensure that we understand the needs of all markets in all their nuances so that funds have the tools they need to stay competitive and the time to prioritize. most for them – the investor. “

About Intertrust Group

At Intertrust Group, our 4,000 employees are dedicated to providing world-leading, specialized administrative services to clients in over 30 countries. This is reinforced by the support we offer through our recognized partner network, which covers over 100 other jurisdictions. Our focus on tailored corporate, fund, capital market and private wealth services enables our clients to invest, grow and be successful anywhere in the world. At the heart of international business, our local expertise and our innovative, proprietary technology combine to create a convincing offer – all of which keeps our customers one step ahead.

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SOURCE Intertrust Group

The above press release is courtesy of PRNewswire. The views, opinions, and statements contained in the press release are not endorsed by, nor do they necessarily reflect those of Gray Media Group, Inc.

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