Now is the time to implement investment management software. Here’s why.

About a week ago, I had a consulting meeting with a GP considering implementing a management software solution into his investment operations. His first question right off the bat was: ״I know that I need to digitize my operations, but considering the state of the market, isn’t it better to wait until things pick up?״

It’s not the first time I’ve heard this concern in one form or another. Implementing a tech solution into your workflow is a big decision, and in the current state of the market, where every expense counts, it makes the decision even harder.

While sitting on it until the market picks up may seem intuitively like the right call, in reality, waiting could prove to be a costly misconception.

In this article, I’ll cover the reasons why it makes more sense to implement investment management software now rather than delay the decision.

Digital transformation – the sooner, the better

In today’s rapidly evolving business landscape, staying ahead of the curve requires embracing technological advancements.

Statistics about adoption rates show that firms are starting to recognize the benefits of tech, with 30% of firms “extensively adopting” and 70% “moderately adopting” tech in their fundraising process.

The reason behind the increasing adoption rates of technology and automation is apparent – they enable you to work faster, save money, and complete more deals.

By implementing the software now, you position your firm to leverage the benefits of automation, data analysis, and streamlined processes, giving you a competitive edge over other firms.

Once your system is up and running and opportunities start presenting themselves, your new digitally augmented infrastructure will enable you to take on more deals and scale effectively by removing blockers and barriers that hinder growth.

Even in downtimes, digitization allows you to accomplish more with much less, so you can free up all your available resources and attention to finding deals and navigating this challenging market. The sooner you transition, the faster you’ll reap the fruits of digitization.

Implementing a system while handling ongoing deals is much more complicated

What makes more sense, changing a jet’s engine when it’s already accelerating on the runway (or mid-flight) or when it’s parked?

Similarly, it’s better to transform your firm’s investment operations now when you have the time, focus, and resources to optimize the transition, learn the system, and train your team rather than do it simultaneously with running a deal.

By implementing the software now, you can establish a solid foundation for future deals and growth without compromising ongoing operations.

Lack of agility will cost you deals: faster fundraising

In the world of acquisitions and investments, few things are as crucial as maintaining the agility to hit the iron while it’s hot.

When a lucrative opportunity presents itself, being able to move quickly can make all the difference in the world.

Let’s break it down into two possible scenarios: in one, you’re working without an investment management solution. After setting up the deal itself, you will need to:

• Create marketing materials (presentations, brochures) and data rooms.
• Send the offering details to prospects and investors.
• Manually track subscriptions and manage the back-and-forth of document exchange.
• Manage inquiries and requests.
• Possibly hire and train new personnel to handle the increased work volume.

Now let’s say that you’re fundraising with an investment management solution:

• You set up a data room and a brochure within minutes. Investors log in to their Investor Portal to view the deal; you can export the brochure into PDF form and send it or simply send the link to investors.
• You create an automated subscription flow where investors can make commitments, fill out the forms and sign the documents within minutes.
• Investors get a more convenient subscription experience – they go through the process directly from their portal and don’t need to fill out their details, as they’re automatically auto-populated in all the documents based on the details in the system.
• You can track the subscription progress and react in real time to ensure the subscriptions are completed.
• You can conveniently manage all inquiries, requests, and investor communication from the CRM.
• You can do it all with a lean team, keeping operational costs to a minimum.

Our customers see radical improvement in the time it takes from the initial deal to closing, allowing them to capitalize on opportunities promptly and efficiently. For example, Taylor Bassett, COO at Helu Capital, shares their fundraising experience:

“Immediately after starting with Agora, we tripled the amount of equity we were able to attract in the next two quarters compared to the previous two.

With the right software, you can close the fundraising process in days rather than weeks, enabling you to seize opportunities swiftly and secure deals that might have otherwise slipped through your fingers.

Fostering investor relations is more important than ever

During market downturns or challenging economic periods, investor relations become even more critical.

Studies have shown that acquiring a new customer can cost five to seven times more than retaining an old one. A similar logic applies to investors – investor retention is a top priority, especially in this climate.

An investment management software system enhances your communication and transparency with investors, directly affecting investor retention.

The software provides tools to enhance all aspects of investor relations:

• The Investor Portal provides transparency to investors without requiring any added resources from your team.
• Through your CRM, you can stay on top of any request or inquiry investors may have, respond promptly, and manage investor-related tasks.
• You can generate reports and share updates with investors conveniently through the platform.

Ultimately, streamlined investor management helps you maintain strong relationships, especially during challenging times.

Building trust and keeping investors informed will help you navigate through downturns more effectively and position your firm for future growth.

Now is the time to implement an investment management solution

Although the market is shrouded in a cloud of uncertainty, now is undoubtedly the time to implement investment management software for your firm.

By embracing digital transformation, enhancing agility, expediting fundraising, and strengthening investor relations, you position yourself for success in the long run.

Additionally, implementing the software now saves you from the complexities of integrating it while managing ongoing deals later on.

By taking the leap and embracing technology, you gain a competitive edge in the dynamic world of investment management and acquisitions.

Would you like to learn more about what digitized investment operations can do for your firm?

Modified Date & Time : 28 Mar 2024, 09:33 am

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Author

Matan Bichler

Matan Bichler is a CRE tech implementation expert, with a decade of experience in digital transformation consultancy and a bachelor’s degree in law and business management. Prior to his current role, Matan practiced tech law.

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