Manual Due Diligence Practices Are Unsustainable.
Operational risk means the data critical for appropriate investment decisions has to pass through a single person(s), risking that items crucial for your team could be overlooked for weeks or months, leading to missing key events.
Data quality and timeliness is always an issue: given the "human" requirement, the data will only be as good as what is requested. Manual processing creates openings for human input, which introduce reporting and analytical errors.
The linear cost growth for manual due diligence is prohibitive. As the number of manager relationships increases, the associated costs of processing grows to an unsustainable 1:1.
Institutional investors have become more sophisticated and cautious in the wake of manager scandals, demanding higher levels of transparency. Ever-increasing data requests from allocators (both pre and post allocation) have resulted in exponential growth in the amount of data handled by fund managers.
What systems do you have in place to manage this growth?
Take control of your due diligence communications with a platform that decreases processing costs and increases transparency for research and portfolio teams.