The Tech's Factor: The digitalization of private markets in 2022 and beyond

Report 23 May

The Tech's Factor: The digitalization of private markets in 2022 and beyond

This report, in association with Bite Investments, considers how digitalization is shaping the private capital industry, and how fund managers are adopting tech, for what purposes, what opportunities they see and what challenges they face.

Highlights include:

  • Bigger moves faster. 90% of firms with AUM of more than US$1bn agree that keeping ahead of the game in regard to technological capabilities at their organization is a top priority. For firms that have AUM of less than US$1bn, 43% agree with this statement.
  • Digital drivers. 85% to 90% of respondents across sizes say that enhanced data access and the increasing granularity of data is one of the drivers for their digitalization investment plans. Around three-quarters (75%–78%) of respondents also refer to increasingly demanding regulatory requirements as one of the reasons for investment in this area. 
  • Future impact. A majority of firms are expecting to invest further into areas in which they have already made progress and investments. These include cloud/SaaS solutions (78%–80%) and social media, mobile and collaborative digital technologies (75%–83%). The primary benefit of using cloud/SaaS platforms is to streamline operations.
  • Expectations for digital growth. Over three-quarters (80%) of larger firms expect to make external digital investments (e.g., advisors and services providers) north of US$1m over the next two years, with 33% anticipating investments of between US$5m and US$10m. Smaller firms expect to make commensurately smaller investments into external digital investment.
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