A hedge fund is an investment pool full of contributions from a limited number of investors/partners and managed by a professional with the intent to maximize returns and minimize risk. They are typically open to qualified investors, and are often invested in a wide range of securities. Private equity is another form of financing where capital is invested into a typically mature and traditional business in exchange for equity. As of April 2020, there has been an inflow into private equity to the tune of $2 trillion USD.
Transactions in each of these industries can be extremely complex, and often utilize a chain of communications and exchanges of monies and data, making it increasingly difficult to maintain compliance and manage the funds.
Resolvr 2.0 Features & Functionalities
However, leaps and bounds are continuously being made in the financial technology sector, making these complex transactions run more smoothly. It is becoming increasingly important for companies to keep up with consumer expectations of technological advancements - on both the front and back ends.
Financial technology for your hedge fund or private equity firm lends itself to more effective data management, which reduces risk and improves report accuracy. Having streamlined portals for investors can improve relations with current investors, as well as attract new ones. Financial technology can also assist with managing data from multiple sources, which will reduce the time spent compiling the data while also improving the auditability and security of the data. Managers who utilize these kinds of software find themselves able to make more strategic decisions with better balanced risk and return, and better improve their team's ability to do the same. Functional software for finance and CMR can better provide fund performance analyses and back office accounting, and ply companies with client management tools for managers to use. Utilizing an expense allocation software platform can save you several hundred thousand dollars per year, as the digital data streams and artificial intelligence optimize the work to increase profit margins, streamlines communication, and reduces processing time.
As you can see, there are a myriad of benefits that come along with utilizing fintech software to up your hedge fund or private equity firm's performance. Find your company a fintech platform today to stop losing time and money, avoid misapportionment fees from the SEC, and optimize your fund operations to get your company on par with household names like Nike, Intel, and IBM.
If expense allocation software (or expense management software) could help your firm, get in touch with us or find out more:
Expense allocation software: Resolvr website
Legal billing software: Bilr website
Gary R Markham
Gary R Markham is co-founder and Chief Executive of aXpire fund solutions, which designs, develops and deploys an array of expense management tools. He is an author of many articles, regularly speaks at conferences, panels and symposiums, a Global Director of the Hedge Fund Association, a recent recipient of the Keys to the County of Miami Dade. Gary has over 20 years experience in FinTech, specializing in spend, expense management, vendor and allocation and apportionment software solutions.