Data analytics should be top priority for service providers

According to a new report, data analytics will be the top priority for service providers going forward, given the increasing demand for high quality data and reports.

EY’s How can service providers maintain growth in an unprecedented global environment? report suggests off the shelf tech solutions won’t be able to meet GPs’ data needs when it comes to meeting LP reporting demands.

As private capital funds continue their tech system upgrades, LPs are increasingly eager to access detailed financial and non-financial portfolio company data in real time.

To effectively support GPs with these demands, EY believes service providers should be one step ahead of GPs in anticipating their needs, rather than simply reacting to issues and requests.

Manual vs digital

As EY acknowledges, the industry heavily relies on Excel, but LPs will continue to request data in their own formats. To handle this, a move towards automated processes while retaining a high degree of customisation and transparency will be beneficial to the GP and LP relationship going forward.

GP / service provider relationships

Additionally, EY’s report said GPs are often held back from growth opportunities, due to service providers’ poor understanding of their local jurisdictional needs where communication is vital. As such, EY advises service providers to improve efficiency and the overall relationship by being more transparent with their GP clients about their processes.