As General Partners (GPs) increasingly rely on operational technology, selecting the right software providers is crucial but challenging. In a recent article featured in The Drawdown, editor Jon Whiteaker spoke with Socium Fund Services’ Michael von Bevern about how data access is a key differentiator in the fund administration space.
“It is critically important that GPs have access to their data. They are the ones fielding calls from regulators, investors and their accountants, they need to be able to respond efficiently to all requests, “ says Socium Fund Services, a Suntera Global company, co-managing director Michael Von Bevern.
The article provides “dos and don’ts” for GPs, particularly CFOs when evaluating tech partners. Many companies overpay for SaaS contracts due to hidden pricing and lack of market visibility, making it crucial to start negotiations well in advance. While consultants can provide valuable insights, their services come at a cost. Outsourcing technology decisions to a trusted fund administrator can save money and provide the data needed to respond to regulators in a timely fashion and to answer investor requests. It’s important for private fund GPs to conduct thorough due diligence when exploring the rapidly evolving operational tech landscape.