As a fund services provider in the private markets industry, you are facing an increasingly complex and competitive market. One that is rapidly growing and evolving just like the private markets.
Fund services providers are the key interface between GPs and their LPs. A plethora of funds, data, and analytics are intertwined among these key stakeholders. The increasing demands from both sides are exacerbated by increasingly stringent regulatory frameworks and a competitive market environment. The job for fund service providers has never been more challenging!
Overcoming the complexities of fund servicing requires expertise and resources.
A shift in pricing models from the traditional billable hours to fixed fees is putting strains on margins. It is no surprise therefore that these structural shifts are driving fund services providers to turn to automation and technology to help them grow, scale, and compete.
An innovative, technologically advanced solution for fund services providers should be able to:
Offer a one-stop solution for managing private markets portfolios
Highest data integrity ensuring access to consistent, granular market intelligence
Manage multi-asset portfolios effectively with a custom analysis that is fed back to a comprehensive client report
Provide digital data flow management and an audit trail
Enabling value-added services that go beyond basic fund processing
Delivering sophisticated risk management analysis, customized client portfolio, and private markets reports
The CEPRES Platform will provide all the above. This ultimately lets Fund Services providers become an extension of their client’s investment office.
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The private markets industry is also growing rapidly. This is mostly due to existing investors increasing their allocations to this asset class. Newcomers are also entering the foray to generate alpha for their portfolios in this long-term, low-interest environment.
The single most important challenge in this post-GFC era of the private markets being risk management.
LPs’ risk concerns are driving their due diligence and portfolio monitoring processes and frameworks, and therefore, data requirements. These developments have direct implications on GPs, and consequently, their defined requirements for fund services providers.
CEPRES risk measurement capabilities allow insights into risks such as:
Liquidity Risk - Capital Management, tracking of Commitments, Fund structure and Pace Analysis
Market Risk - track market exposure, and forex events
Financing Risk - visualize if the companies are overleveraged, compared to the amount of EBITDA, breakdown the financing structure to segregate debt and equity, break down by location, industry, run analysis such as subordinated debt vs senior debt and benchmark against CEPRES market intelligence
Pricing Risk - benchmark against the CEPRES Market Intelligence universe of over 91,600+ deals and 982,000+ transactions combined with 80+ filters such as sector and geography (as of Nov. 2020)
Capital Risk - Performance spread and consistency using CEPRES standard risk management calculations
Value Creation Risk - Track a GPs consistent operating metric performance and highlight the drivers behind performance returns across location, industry and stage
Human Capital Risk - identify or present the strengths of the GPs investment professionals
Risk-Adjusted Alpha and Linear Regression Model & Public Market Comparisons
Volatility Risk
These powerful CEPRES Platform capabilities enable you to identify, document, measure, and monitor all risks with adequate frequency. Stress-test client portfolios to protect against over-commitment. Deploy your own tailored predictive research reports to clients while meeting new regulatory risk management requirements.
In this modern era of the private markets, fund services providers need to transform their business. Staying at the forefront of client servicing requires the constant delivery of superior, comprehensive risk management analysis and reporting capabilities as value-added services to attract additional revenue. With the CEPRES Platform, just a few clicks away, you can scale your business and stay ahead of the client and regulatory demands. By leveraging proven technology to reduce operating costs, fund services providers can accelerate their growth.
