There are some things in this world that get better with age. Wine, whisky and leather all come to mind. Software? Not so much. If your private equity accounting system has been collecting digital cobwebs, remember that what was great yesterday may be out of date tomorrow.
Switching technology is rarely easy, but that doesn’t have to mean that it’s not in your best interest.
If you’ve wondered what else is out there, here are three reasons why now could be the time to make a change.
1. Your data management and reporting requirements are growing.
Consider this red flag No. 1. You’ve got a growing firm full of deal makers and nurturers with experience and ideas, yet you have data and reporting limitations within your middle and back office. All indications are suggesting that over the next few years demands for data and more customized reporting is only going to increase. If you don’t have the right systems in place today, you could end up getting bogged down in manual processes. Rather than waiting till it reaches a tipping point, you should explore upgrading.
2. Your firm’s strategy has evolved while your tech has stayed the same.
Does your firm operate exactly the same way it did five years ago? This space is growing rapidly, and private equity firms and fund administrators must maintain an eye toward innovation. As your strategies and your portfolios grow in complexity and volume, your technology must evolve as well.
3. You’ve thought to yourself, “We’ve outgrown this vendor.”
Over the past several years, we’ve seen incredible growth in the private equity sector. Sometimes, it’s almost as if the future of finance is arriving before we’re ready for it. Between numerous new entrants to the market, increased regulatory scrutiny, evolving investor demands and technological advancement, this isn’t the same private equity space of yesteryear. If you have a reporting and accounting system that’s outdated and incapable of truly scaling as your firm and the industry grow, it’s time to take a look at newer options. When the technology and team that powers your middle- and back-office can support your growth, you can focus on making that a reality.
So, take a fresh look at the technology solutions you’re using at your firm. If they’re old or simply not up to the tasks of today, there’s no way they’ll flex up with you as you evolve into tomorrow. Time to dust off the cobwebs.
If you’re curious about what else is out there and want to learn more about what you could get out of making a PE software switch, drop us a line.