Unlocking opportunities
Dec 2024
David Genn, CEO at Goji, Euroclear group, looks at the operational pain points affecting private markets and discusses how technology has the potential to address inefficiencies and drive growth
Image: Goji, Euroclear group
Private markets are no longer a niche reserved for the world’s largest institutions. In recent years, they have surged into the mainstream, propelled by a rising tide of interest from private wealth investors building diversified portfolios. Preqin’s latest figures project global assets under management (AUM) for alternative funds will reach US$29.22 trillion by the end of 2029, up from US$16.78 trillion in 2023.
While this growth presents a wealth of opportunities for asset managers and fund administrators, it is not without its challenges. As the private markets space expands, it becomes increasingly clear that there is an over-reliance on manual processes and legacy systems and a lack of industry-wide standardisation. These challenges create bottlenecks that impede future growth.
Technology, with its potential to digitise, connect, and scale, is paving the way for a more accessible and efficient market. At Goji, we understand the pain points that affect the industry and are committed to driving technological innovation and efficiency as a result.
Our platform offers a streamlined end-to-end journey for private market funds, including digitised investor onboarding, compliance, subscriptions, capital calls, distributions and reporting. By automating every step of the process, our technology alleviates the burden of manual operations, allowing asset managers and fund administrators to prioritise strategic expansion over routine administration.
Moreover, as part of the Euroclear group, we have integrated our advanced technology with Euroclear’s global infrastructure. By doing so, we are helping to create a connected network for alternative funds, unlocking growth and efficiency for our clients.
Operational pain points
Legacy systems and manual processes
Private markets have grown, but the infrastructure supporting them has not kept pace. The alternative asset sector remains highly fragmented and reliant on outdated, labour-intensive processes. From investor onboarding and know-your-customer (KYC) and anti-money laundering (AML) compliance, to capital calls and distributions, many fund administrators are still hindered by manual paperwork and cumbersome data management. This approach is not just slow, it is error-prone and costly, leading to inefficiencies that impact the entire investment lifecycle. For asset managers, these inefficiencies translate into higher costs, slower processes and a poor experience for investors entering their funds.
With rapidly growing investor volumes, operational inefficiencies are exacerbated. Fund administrators and asset managers are struggling to close the widening gap between investor expectations and operational reality. A digitised investment journey is no longer optional — it is a necessity to stay ahead of growing demand.
Lack of standardisation
The absence of homogenised, industry-wide market infrastructure for alternative funds makes it difficult for market participants to operate efficiently at scale. Without seamless connectivity and straight-through processing, asset managers and fund administrators face bottlenecks that limit their ability to handle a greater number of investors or expand to new regions.
Private market funds, unlike their public counterparts, often feature complex structures with tailored transactions. The absence of standardisation across the industry means that each asset manager must navigate bespoke requirements, further complicating investor onboarding and capital events.
For fund administrators, this lack of uniformity adds layers of complexity. Every subscription requires manual verification and processing, which is time consuming and has a high risk for errors.
Redemption processes, similarly, can be bogged down by administrative burden, delaying payouts to investors and undermining client experience.
Without a scalable, digitised approach, the industry will struggle to meet the demands of an expanding investor base. Moreover, for both asset managers and fund administrators, there is a lack of global connectivity, making outreach and relationship-building a strenuous process.
With a globally connected network for alternative funds, market participants can meet and transact at scale via a standardised market infrastructure with straight-through processing.
Transforming private markets with advanced technology
The key to overcoming operational inefficiencies lies in three main pillars: digitisation, connectivity and scalability. This is where we see Goji playing a pivotal role.
Digitisation
Technology has the power to elevate archaic processes into efficient, automated workflows. By digitising investor onboarding, subscription agreements and capital events, fund administrators can dramatically reduce the time and effort required for administrative tasks.
This shift also enhances the investor experience, as private wealth clients increasingly expect seamless, digital-first services akin to those offered by mainstream investment platforms. Automation not only eliminates errors but also allows asset managers to handle higher volumes without sacrificing quality. Our technology digitises every stage of the investment process. For asset managers and fund administrators, this means replacing manual, paper-based workflows with a streamlined, automated experience. Configurable forms and automatic document requests driven by KYC policies ensure adherence to increasing compliance requirements and enhance the investor experience.
Reusable investor information and robust data export capabilities allow our clients to integrate seamlessly with their existing systems. Subscription management tools including DocuSign integration and built-in validations streamline workflows and reduce errors. Additionally, comprehensive reporting capabilities allow users to monitor performance and visualise fund metrics.
Yegor Lanovenko, global co-head of fund services at Ocorian says, “Digitalising engagement and data capture between investors, managers and asset servicers is critical to handling the complexity of private markets at scale and eliminating manual touchpoints in historically operationally burdensome processes. By partnering with Goji, we can offer clients a single solution combining digital subscription documents, KYC, AML, and an investor portal which unifies investor data and management.”
Fund administrators such as Ocorian can benefit from centralised data management and automated monitoring, which reduces operational overhead and compliance risk, enabling them to focus on high-value activities and client service. Asset managers can accelerate fundraising and focus on strategic initiatives by simplifying onboarding and compliance, therefore unlocking new capital-raising opportunities and expanding their investor base.
Connectivity
By connecting asset managers, distributors and fund administrators through unified platforms, relationship management and fund distribution can be simplified. Instead of relying on disparate systems or fragmented databases, a connected infrastructure enables seamless data sharing and collaboration.
The integration of our platform technology with Euroclear’s global market infrastructure links our clients with Euroclear’s FundSettle platform and its network of more than 3,000 distributors, including custodians, private banks, wealth managers and family offices.
This network facilitates the distribution of alternative funds on a broader scale, providing asset managers with access to new markets and streamlining the process of building distribution relationships.
Scalability
Efficient digital processes and a connected ecosystem mean market participants can transact at scale, whether it is onboarding thousands of new investors or executing complex capital calls across multiple funds. Scalability is a necessity, especially as private markets become increasingly global and investor volumes rise.
At Goji, we provide a platform that offers the flexibility asset managers and fund administrators need to adapt quickly to market demands. As a result, they can scale their services in line with the increasing appetite for private market allocations.
Technology as the catalyst for future expansion
The growth of private markets is an exciting chapter in the financial industry’s evolution.
Yet, without addressing scalability and operational inefficiencies, the sector risks stagnation.
Technology holds the key to unlocking the true potential of private markets.
By digitising processes, enhancing connectivity, and enabling scalability, it paves the way for a more accessible and efficient future.
At Goji, we are helping to drive this technological shift with support from Euroclear’s infrastructure.
Looking ahead, the path to scaling alternative and private markets is clear: embrace innovation and dismantle the barriers that have long held this sector back.
While this growth presents a wealth of opportunities for asset managers and fund administrators, it is not without its challenges. As the private markets space expands, it becomes increasingly clear that there is an over-reliance on manual processes and legacy systems and a lack of industry-wide standardisation. These challenges create bottlenecks that impede future growth.
Technology, with its potential to digitise, connect, and scale, is paving the way for a more accessible and efficient market. At Goji, we understand the pain points that affect the industry and are committed to driving technological innovation and efficiency as a result.
Our platform offers a streamlined end-to-end journey for private market funds, including digitised investor onboarding, compliance, subscriptions, capital calls, distributions and reporting. By automating every step of the process, our technology alleviates the burden of manual operations, allowing asset managers and fund administrators to prioritise strategic expansion over routine administration.
Moreover, as part of the Euroclear group, we have integrated our advanced technology with Euroclear’s global infrastructure. By doing so, we are helping to create a connected network for alternative funds, unlocking growth and efficiency for our clients.
Operational pain points
Legacy systems and manual processes
Private markets have grown, but the infrastructure supporting them has not kept pace. The alternative asset sector remains highly fragmented and reliant on outdated, labour-intensive processes. From investor onboarding and know-your-customer (KYC) and anti-money laundering (AML) compliance, to capital calls and distributions, many fund administrators are still hindered by manual paperwork and cumbersome data management. This approach is not just slow, it is error-prone and costly, leading to inefficiencies that impact the entire investment lifecycle. For asset managers, these inefficiencies translate into higher costs, slower processes and a poor experience for investors entering their funds.
With rapidly growing investor volumes, operational inefficiencies are exacerbated. Fund administrators and asset managers are struggling to close the widening gap between investor expectations and operational reality. A digitised investment journey is no longer optional — it is a necessity to stay ahead of growing demand.
Lack of standardisation
The absence of homogenised, industry-wide market infrastructure for alternative funds makes it difficult for market participants to operate efficiently at scale. Without seamless connectivity and straight-through processing, asset managers and fund administrators face bottlenecks that limit their ability to handle a greater number of investors or expand to new regions.
Private market funds, unlike their public counterparts, often feature complex structures with tailored transactions. The absence of standardisation across the industry means that each asset manager must navigate bespoke requirements, further complicating investor onboarding and capital events.
For fund administrators, this lack of uniformity adds layers of complexity. Every subscription requires manual verification and processing, which is time consuming and has a high risk for errors.
Redemption processes, similarly, can be bogged down by administrative burden, delaying payouts to investors and undermining client experience.
Without a scalable, digitised approach, the industry will struggle to meet the demands of an expanding investor base. Moreover, for both asset managers and fund administrators, there is a lack of global connectivity, making outreach and relationship-building a strenuous process.
With a globally connected network for alternative funds, market participants can meet and transact at scale via a standardised market infrastructure with straight-through processing.
Transforming private markets with advanced technology
The key to overcoming operational inefficiencies lies in three main pillars: digitisation, connectivity and scalability. This is where we see Goji playing a pivotal role.
Digitisation
Technology has the power to elevate archaic processes into efficient, automated workflows. By digitising investor onboarding, subscription agreements and capital events, fund administrators can dramatically reduce the time and effort required for administrative tasks.
This shift also enhances the investor experience, as private wealth clients increasingly expect seamless, digital-first services akin to those offered by mainstream investment platforms. Automation not only eliminates errors but also allows asset managers to handle higher volumes without sacrificing quality. Our technology digitises every stage of the investment process. For asset managers and fund administrators, this means replacing manual, paper-based workflows with a streamlined, automated experience. Configurable forms and automatic document requests driven by KYC policies ensure adherence to increasing compliance requirements and enhance the investor experience.
Reusable investor information and robust data export capabilities allow our clients to integrate seamlessly with their existing systems. Subscription management tools including DocuSign integration and built-in validations streamline workflows and reduce errors. Additionally, comprehensive reporting capabilities allow users to monitor performance and visualise fund metrics.
Yegor Lanovenko, global co-head of fund services at Ocorian says, “Digitalising engagement and data capture between investors, managers and asset servicers is critical to handling the complexity of private markets at scale and eliminating manual touchpoints in historically operationally burdensome processes. By partnering with Goji, we can offer clients a single solution combining digital subscription documents, KYC, AML, and an investor portal which unifies investor data and management.”
Fund administrators such as Ocorian can benefit from centralised data management and automated monitoring, which reduces operational overhead and compliance risk, enabling them to focus on high-value activities and client service. Asset managers can accelerate fundraising and focus on strategic initiatives by simplifying onboarding and compliance, therefore unlocking new capital-raising opportunities and expanding their investor base.
Connectivity
By connecting asset managers, distributors and fund administrators through unified platforms, relationship management and fund distribution can be simplified. Instead of relying on disparate systems or fragmented databases, a connected infrastructure enables seamless data sharing and collaboration.
The integration of our platform technology with Euroclear’s global market infrastructure links our clients with Euroclear’s FundSettle platform and its network of more than 3,000 distributors, including custodians, private banks, wealth managers and family offices.
This network facilitates the distribution of alternative funds on a broader scale, providing asset managers with access to new markets and streamlining the process of building distribution relationships.
Scalability
Efficient digital processes and a connected ecosystem mean market participants can transact at scale, whether it is onboarding thousands of new investors or executing complex capital calls across multiple funds. Scalability is a necessity, especially as private markets become increasingly global and investor volumes rise.
At Goji, we provide a platform that offers the flexibility asset managers and fund administrators need to adapt quickly to market demands. As a result, they can scale their services in line with the increasing appetite for private market allocations.
Technology as the catalyst for future expansion
The growth of private markets is an exciting chapter in the financial industry’s evolution.
Yet, without addressing scalability and operational inefficiencies, the sector risks stagnation.
Technology holds the key to unlocking the true potential of private markets.
By digitising processes, enhancing connectivity, and enabling scalability, it paves the way for a more accessible and efficient future.
At Goji, we are helping to drive this technological shift with support from Euroclear’s infrastructure.
Looking ahead, the path to scaling alternative and private markets is clear: embrace innovation and dismantle the barriers that have long held this sector back.
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