How digitising transactions and processes can be a game-changer for Fund Managers
Managing large transactions can be time-consuming and complicated, with stakeholders across multiple jurisdictions and time zones. Coordinating due diligence, structuring and documentation often requires a complex web of email trails, document versions and negotiation notes. Fund managers face more challenges as they raise funds and acquire new investment opportunities.
These can increase operational costs for the Fund manager and their other stakeholders. There are, however, ways to improve the processes and get to market faster.
Recent regulatory updates have clarified that using digital processes to manage the myriad of regulatory requirements is appropriate for regulated entities where it fits within their regulatory framework. In many jurisdictions, for example, electronic signatures and electronic identity verifications are legally valid, which gives flexibility in some of the more time-consuming aspects of the onboarding process.
Regulators in many jurisdictions allow firms to choose the form of signature and verification they prefer, physical or digital, so long as they can demonstrate a thorough risk assessment of the process and how it meets their regulatory requirements.
It is now possible to digitally manage various aspects of gathering and managing information to close complex transactions.
Digitising your transaction management and operational processes as well as having a well-controlled data room can benefit all parties significantly. Sharing documents securely with the right people at the right time will speed up transactions and reduce email traffic.
Standardising transaction workflows
One way to reduce the time to acquire new investments and investors is using digital platforms. The benefits include
Significant Time Reduction
A standardised transaction workflow lets everyone know who is doing what and that all required steps are complete before the deal closes. Managing transactions, reviewing documents and sending for e-Signatures all from one place increases efficiency. Creating a standardised process allows you to easily replicate and manage operations without rework, enabling you to select, manage and close transactions quicker.
Reduced Operational Risk
In addition to saving time, using Phundex and similar platforms can also help eliminate document errors and missing information. Tasks can be assigned to specific Team Members, including any dependencies, ensuring you have the relevant information before starting the next task. Web Forms capture all required information, with comments about tasks are available on the platform, meaning no lost notes or emails with crucial information. Significantly, key person risk is also reduced, as all the information they manage and the status of transactions is centrally accessible.
A digital platform allows stakeholders from any location to provide and access information. Investors, administrators, advisors and the investment businesses can collaborate centrally on Phundex
Better regulatory and data management
Platforms like Phundex have built-in user and data permissions, version control and audit history, helping you to manage regulatory requirements regarding data access and control. A central data room for each transaction ensures the right documents and data are easy to find while maintaining version control and audit history, so you are always using the most up-to-date documents. A virtual due diligence room allows you to share final documents and automatically track who has received them.
Transparency and Governance
Platforms like Phundex provide a dashboard to show the status of transactions and processes so you can see what’s on track and what’s not at a glance. They also give transparency on the status of transactions, improved governance and better control.
More investments translating into more AUM
Finally, streamlining and standardising transactions allows you to onboard investments and investors more efficiently, leading to increased AUM.
Phundex is by far the easiest way for fund administrators and their advisors to manage the various transactions and processes required to set up and administer new funds.
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