Jessica O'ConnorAdopting advanced technology solutions, meeting rising data demands, and navigating talent shortages are among the top challenges faced by private market fund managers, according to a study by CSC, the provider of global business administration and compliance solutions.
CSC’s study, Future Private Capital CFO 2025: Transforming challenges into opportunities, revealed that data quality and accessibility remain top concerns for limited partners (LPs).
Almost half (44%) said that they are not receiving the level of detailed performance reporting, including investment-level data, necessary for informed decision-making.
Nearly three-quarters of LPs expect daily or on-demand access to key fund data, with 74% calling for this level of reporting on portfolio performance, and 72% seeking it for operational SLAs like NAV deadlines.
Technology was a major focus for LPs, with investor portal technology ranked globally as the biggest frustration when working with GPs (cited by 35%).
This was closely followed by timely and accurate communication (27%) and data granularity and analytics (11%).
Liam McHugh, managing director, European Fund Administration, CSC, said: “There are many obstacles to the GP and LP relationship, but several can be avoided by working with the right platform and portal technology.
“Get the platform right, and you can get things like the data right. And if you get the data right, other areas, such as regulation, can become far easier to accommodate and capitalize on.”
The emphasis on technology is echoed by GPs, with both technology and operating systems identified as having the greatest impact on their day-to-day responsibilities.
In response, almost two-thirds (63%) of GPs reported plans to expand their technology frameworks.
Additionally, 50% said they are investing in artifical intelligence (AI) to enhance efficiency, data management, and decision-making processes.
Hiring and retaining skilled professionals was another widespread challenge, with 39% of GPs ranking it as their top concern over the next three years.
The competition for experienced talent is particularly intense in fund management, compliance, and administration roles.
Marshall Saffer, managing director, Funds and Capital Markets, CSC, added: “One of the biggest hurdles encountered by fund managers is streamlining data management, including centralizing and rationalizing the data they need to store.
“Many firms struggle to find the internal resources to handle this effectively. That’s where CSC steps in, offering seamless support for administration, governance, and reporting requirements in a fully integrated technology environment.”
McHugh continued: “Technology now plays a central role in discussions between GPs and LPs, far more than it did five or 10 years ago.
“As regulatory complexities increase and investor expectations evolve, firms that integrate advanced technology solutions and strategic outsourcing will maintain a competitive edge in 2025 and beyond.”
