Destination: London

Gear up for big changes in the PEVC sector

In the coming decade, the PEVC industry are likely to undergo drastic changes in many ways. According to a report by alternative asset data provider Pregin, alternative assets around the world will grow at a compound annual growth rate (CAGR) of 9.8%, reaching US$17.14 trillion in 2025, and private equity investment as a percentage of alternative assets will increase from 41% to 53%. In the next five years, the Asia-Pacific region will become the fastest-growing region in terms of alternative assets, with a CAGR of 25.2%. Digitalization and information technology serve as a crucial form of support for the asset management industry that includes the PEVC sector. There will be profound impact on company operations and corporate communication. Senior executives and mid-level managers must be well prepared for all the changes.

Meanwhile, digitalization and information technology is a crucial form of support for asset management industries around the world, including PEVC sectors. There will be profound impact on company operations and corporate communication. Senior executives and mid-level managers must be well prepared for all the changes.

In the coming decade, the PEVC industry is likely to undergo drastic changes in many ways. According to a report by alternative asset data provider Pregin, alternative assets around the world will grow at a compound annual growth rate (CAGR) of 9.8%, reaching US$17.14 trillion in 2025, and private equity investment as a percentage of alternative assets will increase from 41% to 53%.

Asset management service providers that provide services to private equity funds are experiencing rapid growth, and they are seeking to pursue higher returns and facing higher expectations from their customers. All these are giving rise to more diversified business models and leading to better performances.

Nonetheless, it is not as if industry players face no issues. Many alternative asset service management companies are still handling complicated data and fund reports manually. The increasingly complex industry landscape and related data make such manual tasks more challenging. While direct processing systems that have been around for more than 30 years are well-developed, they are not fully applicable to alternative asset management due to a lack of standardization.

Aware of all these shortcomings, Linnovate Partners has devised a comprehensive set of solutions. We use data bridging technology to connect GPs, LPs and other related parties. We have also adopted blockchain technology to achieve seamless transmission of encrypted data, eventually creating SMP Net, our-in-house proprietary asset servicing platform. Our clients can use SMP Net to optimize data transparency. The platform can also simplify the way investors communicate with clients, boost work efficiency, and ultimately improve long-term ROI.

In addition, Linnovate Partners leverages two industry-leading systems to offer automation technology and data integration services. They are namely eFront, one of the world’s top end-to-end alternative investment management software and solutions provider (now part of BlackRock), and Microsoft Azure, an eminent public cloud platform with solutions catering to front, middle and backoffice operations in the alternative asset industry.

Since its inception, Linnovate Partners has been committed to promoting positive changes to the PEVC sector through digitalization. Through informatization and digitalization, we strive to help investment management institutions to optimize their operations and efficiency and support their growth.