The challenges investment management firms face without the right technology

Richard Gerritsen

Richard has been in financial and sales leadership positions for more than 25 years with several Dutch and US-based technology firms. Since joining Yardi in 2005, Richard has been responsible for business development and sales in Europe as a Regional Director and helped the Yardi Europe organisation grow from strength to strength.

Investment management firms need to adapt to navigate the changes created by the pandemic to compete and successfully raise capital. As investors are expected to increase their allocations to real estate over the next two years, there is renewed investor demand for long-term core and core+ strategies. This need for operational oversight and technology should be at the forefront of your firm’s strategy.
Your investors and internal stakeholders want access to transparent and detailed data. During the past year, investment managers focused on gaining a better understanding of their customer’s business, leases and revenue exposure. This drive towards better customer understanding, relationships and satisfaction is centred around improved collaboration and scalable data strategies.
Working with outsourced operating partners, asset managers or fund administrators can be challenging as you rely on them to gather information, which can often delay key decision making. You need to gain control and find consistency rather than gathering data from multiple reports in a variety of formats.
So, what should an investment management firm consider?

  • Your finance, asset and investment management teams need data ownership to gain access to qualitative and auditable data to make better decisions and identify issues in the moment. By taking control of this data, you can drive transparency between owners and investors, helping to reduce risk, increase investor confidence and create healthier communication between all parties.

  • Better data can enhance operational performance, achieve ESG targets and streamline business operations. You need to implement a data strategy and utilise the right technology platform to gain actionable insights, achieve objectives and scale your business more effectively.

  • You need to have a flexible environment that is easily scalable to better harness data. To make any transition while maintaining the flexibility your teams require is often the most challenging part, which is why a well-aligned stakeholder and project team are essential for success.

  • Take ownership and move your technology in-house. Platform solutions are continuously evolving to facilitate growth and aid communication between asset owners and investors. By taking ownership, you can access relevant data in real-time, helping to make effective and better-informed decisions.

Utilising a single connected platform will help you improve communication with current and prospective investors, gain real-time data insights and allow you to access third-party solutions through one platform. It helps eliminate disparate systems, providing a single source of truth across your organisation, investors and asset owners.