Real-time data reporting remains a source of friction between LPs and GPs

LPs continue to push for more real-time data when it comes to reporting, but GPs are still limited in what they can deliver, according to panellists at yesterday's Tech Innovation conference 2022, co-hosted by Real Deals and The Drawdown.

"The demand for more granular data versus the ability for GPs to produce that is a source of friction in LP-GP relations," said KKR Capstone's principal Catherine Cutts.

"The desire and appetite to provide that level of real-time data is there for GPs, but they are not set up from an operational perspective to deliver on this," Cutts notes. "Operational reporting is hard to crack. It is difficult to collect and compare data in businesses that have different systems. Different funds are experiencing this to different degrees, tech funds will find it easier based on the kind of companies they back," she said.

IQEQ's executive director of investor solutions Hugh Stacey agreed that getting data into a form which is usable is a "huge hurdle," adding that "the industry is not yet structured in a way that allows for this."

Nonetheless, going forward more real-time data is on the horizon. "The next step will be having real-time updates on LPs' tablets and mobiles," Stacey said.

This story was originally published in our sister title, Real Deals.