As hybrid funds become more common, we continue to see the lines blur between hedge funds and private equity funds as typical closed-end private equity structures venture more into liquid assets. This is especially true in the wake of the COVID-19 pandemic, when certain sectors fell out of favor and others saw increased attention, leading investors to shift strategies from one asset class to another. As we discussed in our “Insurers Turn to Private Markets to Maximize Returns” post, insurers are increasingly turning to private marketing investing in response to inflation and interest rate fluctuations.
There are unique reporting and accounting challenges associated with these new strategies, with lenders needing the ability to adapt to changing regulatory requirements and scale with the ebb and flow of loan applications. Private market investing comes with unique and complex nested fund structures that can be difficult to navigate for those who are newer to the space. Additionally, different jurisdictions have different requirements. These challenges require flexible technology to deal with data collection across multiple disparate systems.
There are a few loan management platforms available, but how do you choose the solution that’s right for you?