Many alternative asset management funds grapple with resource constraints, outdated technology, and inefficient processes. With our 20-year experience serving hedge and private equity funds in technology and operations, FinServ is at the forefront of identifying and addressing these challenges for our clients. We provide tailored project recommendations to enhance your fund’s operations. 

Resource Capacity Struggles

Many alternative asset management firms struggle with a limited resource pool to complete necessary work routines.  Finance teams often encounter challenges to keep pace with financial reporting, performance measurement, portfolio valuation, and tax demands.  Investor Relations teams struggle to manage multiple investor outreach events simultaneously, including investor meetings, road shows, and investor conferences, while responding to existing investor requests.  Deal Teams may face challenges sourcing high-quality deal opportunities due to limited staff, tight time constraints, and demanding workloads.   

During an operational assessment, our industry expert consultants address challenges through in-depth process analysis and peer benchmarking. Our team works closely with your team from front to back office to streamline processes, optimize resources, and enhance productivity. Additionally, we evaluate collaboration opportunities with third-party administrators or outsourcing partners to boost the organization’s throughput. We also identify opportunities for third-party outsourcing of non-essential processes to gain cost efficiencies in your operations. This pragmatic approach helps organizations manage their roles with greater confidence and efficiency. 

Outdated Technology Infrastructure 

In today’s era of rapid technological advancement, many firms operate on dated technology platforms, which no longer align with their current needs.  Finance teams may contend with General Ledgers that offer limited functionality, while Deal Teams may rely excessively on manual Excel spreadsheets. Additionally, Investor Relations Teams might underutilize CRM systems for maintaining close contact with investors and the ability to field their requests.   

Operational assessments highlight these technical challenges, offer recommendations, and enable organizations to prioritize projects for efficiency improvements. FinServ technology experts develop a roadmap of projects for modernization, advocating for adopting new AI-focused web-based technologies and overhauling outdated infrastructure. Based on our past 20 years of experience implementing systems for hedge and private equity funds, FinServ has worked with almost all the software packages in the industry. Too many funds struggle with systems that do not fit their business or can’t scale to meet new requirements. Our experience uniquely positions FinServ to recommend the right systems to fit your fund’s unique requirements. By embracing modern solutions and investing in technology upgrades or implementing new tools, firms can unlock new agility, scalability, and innovation levels. 

Stagnant Process Constraints

Transaction processes within many firms often remain stagnant and unchanged for years. Processes are routinely executed and marked as completed. However, valuable time may be squandered if a periodic review is not performed to assess necessity. For example, why do some organizations create reports and circulate them to internal stakeholders only to realize that they were designed to support deprecated strategies and are no longer reviewed by recipients?   

An operational assessment can examine untouched processes more closely and bring them to the forefront to re-evaluate their necessity.  We can challenge the status quo and advocate for continuous improvement. By revisiting and revitalizing outdated processes, firms can increase efficiency, reduce operational risks, and drive sustainable growth. 

Operational Assessment Process:  What should I be looking for? 

Embarking on an operational assessment process can yield significant results for an organization. After a well-run assessment, the management team will have a clear vision of the future state, including a comprehensive systems architecture diagram and project roadmap with actionable recommendations ready for implementation. To ensure a structured and effective approach, the assessment is divided into three major phases: 

• Initiation Phase: This phase focuses on laying the groundwork for the assessment. Key tasks include identifying all team members and sessions that will involve a comprehensive review of your firm’s technology and operations. This phase culminates with a kickoff meeting with your team so all members understand the project’s goals and how each team member will be involved. 

• Assessment Phase: A thorough review of existing processes is conducted in this critical phase. Users are actively engaged in identifying pain points and providing valuable insights. Through workshops and collaborative sessions, a detailed picture of the current state is developed, highlighting key requirements and potential gaps in operations. At the end of this phase, FinServ produces a comprehensive set of current-state business process flows and a current-state Systems Architecture diagram. 

• Recommendation Phase: With a clear understanding of the current state, the focus shifts to envisioning the future state. A comprehensive roadmap is developed, outlining specific improvements in people, processes, and technology. FinServ’s proprietary method breaks the projects into four quadrants, spotlighting the most impactful projects for your organization. FinServ leverages its 20 years of industry experience to provide you with accurate estimates of time and costs for these projects, allowing your team to make informed decisions on immediate next steps.

Conclusion 

Moving Forward with a Transformative Operational Assessment  

An operational assessment is a tool that highlights organizational challenges and empowers a firm to achieve operational excellence by defining a clear future state with specific project-based actions. 

At FinServ Consulting, we specialize in operational assessments tailored to the unique needs of hedge and private equity firms. Our team of industry, operations, and technology experts is dedicated to helping firms overcome challenges, unlock opportunities, and achieve their strategic objectives. Contact us today to embark on a transformative journey towards operational excellence.