Will IT be one of the biggest hot topics for the private equity and real estate industry in the years to come?
This article focuses on the IT requirements of asset managers and service providers in the private equity and real estate sectors and appropriate business solutions, taking into account market practice, regulations and legislation, as well as reporting standards—which have already been covered elsewhere in this magazine.
It also takes a closer look at the industry challenges from an IT perspective and potential opportunities for software developers and other market players.
The wind of change impacting private equity and real estate
The Private Equity (PE) and Real Estate (RE) sectors, and more generally, the alternative funds market, are now caught in the regulatory spotlight and have not escaped tighter scrutiny and pressures for transparency from regulators and investors alike. In a similar way to the global transformation of the retail fund industry in recent decades; new operating models covering the front/middle to back office operations of PE and RE asset managers and their service providers, have emerged—and these are not just necessary to adapt to current legal and industry guidelines, but are prime requisites for business viability, service marketability and expansion.
Major regulations that have triggered essential change in the asset management industry include the Dodd-Frank Act and FATCA in the United States, and Europe’s AIFMD. Many PE and RE structuring vehicles and investment strategies need to make changes to comply with this new wave of laws, directives and their implementation requirements. Moreover, investor and industry standard-setting bodies such as the Institutional Limited Partners Association (ILPA), INREV, EVCA and IPEV, are likewise influential in clamouring for industry reforms and standardisation of the highly fragmented, inadequately automated and vastly diversified PE and RE sectors.
Inside magazine issue 6, October 2014
Inside is Deloitte’s quarterly magazine offering an exclusive insight into best practices, trends and opportunities faced by our clients across all industries.
Inside focuses on the main hot topics relevant for the market (Asset management, Banking, Insurance, Public sector, Healthcare, Private equity, Real estate, TMT, Manufacturing and consumer business, Transport and logistics).