The New Norm For Private Market Investors

March 18, 2020 Tim Buchner

SAN MATEO, Calif – MARCH 18, 2020Working from home is the new norm, or as many are finding it, the new not-so-norm. As we rapidly try to get back into a daily rhythm – what was normal weeks and months ago is no longer.  We’re in uncharted territory.  

My company (Mercatus), along with many Private Market investors we serve have quickly shifted to working remotely, requiring heavy reliance on data and technology to manage workflow and collaboration across teams, clients, and partners.  

Earlier this week, Infrastructure Investor released an article written by several lawyers at Paul Weiss outlining a checklist for firms to consider across their operations in response to this new norm. I found it not only accurate but extremely helpful in this time of turbulence. Key recommendations they made included seeing the new for organizations to drive:

  • Accelerated focus on warehousing and management of fund documentation
  • Improved information sharing – especially across the valuation and reporting processes
  • Expanded risk mitigations like insurance and other protective mechanisms at the corporation level, down to the funds, portfolios, and assets they operate.  

All of these emphasize the high degree of importance for Private Market investors to deploy solutions to better manage data and workflow across each of their businesses.  Now more than ever, it’s clear this should become a top priority as we social distance ourselves to further prevent the spread of the Coronavirus. Organizations will have to proactively think about how data and its centralization has the potential of enabling:

  •  Real-time analysis on forward-looking insight to maintain and improve the quality of decisions.
  •  Automated reporting for both internal and for investors as it’s inevitable LP’s and internal stakeholders reporting needs will only increase through this global health crisis
  • Real-time transparency from LP to GP to Portfolio company to underlying assets has become a necessity to survive 

As we understand more and more about the effects of this global crisis, my company and I are happy to share best practices or help to create an accelerated plan of attack as this elevates to your top priorities. Please feel free to reach out if you have any interest. 

Full Infrastructure Investor and Paul Weiss article mentioned: https://www.paulweiss.com/practices/transactional/investment-management/publications/covid-19-certain-considerations-for-hedge-fund-managers?id=30840

 

CONTACT:

Tim Buchner

[email protected]

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