The Future of Fund Management

In the competitive world of private market fund management, firms are constantly seeking an operational edge over their peers. This article explores the current operational landscape for most fund managers and envisions the future of fund management.

The Current Fund Management Technology Stack

At Caruso, we have talked to hundreds of private market fund managers across Australia, Singapore, and New Zealand since our launch, and we see the following commonalities among nearly every firm we talk to: They are unhappy with their current technology stack and desperately want to make a change, but they have yet to find a solution that meets their needs.

As a result, most private market fund managers currently operate in the following way:

• Paper-Based Systems: Most fund managers still heavily rely on documents (printed or emailed) to collect information from investors regarding investor onboarding, AML/KYC verifications, and capital raises. This approach is not only inefficient for the internal team but also prone to errors and creates a frustrating experience for investors.
• Manual Processes: Administrative tasks such as distributions, tax statements, redemptions, and transfers are handled manually, leading to high administrative overhead and a greater risk of human error, whether this administration is done in-house or via a third-party fund administration firm.
• Software Not Fit for Purpose: Many firms attempt to implement software to store their documents or improve manual processes. They often take a generic CRM like Salesforce and spend a large amount of money customising it to meet just a portion of their operation needs. While useful in their own domains, as most fund managers discover, these tools are ill-suited for the nuanced and complex needs of fund management.
• Siloed Systems: Alongside a generic CRM like Salesforce, fund managers often use an additional two-four software systems across unit registry, investor portal, and compliance requirements. None of these software typically integrate with each other, and if they do, they don't do it well, as a result, investor data is siloed, making it difficult for fund management teams to access and understand investor information. This lack of a unified data source hinders decision-making and operational efficiency.
• Poor Investor ExperiencesMost fund managers typically have an investor portal, whether provided by their legacy unit registry firm or built themselves at great cost. However, these investor portals are often clunky, provide a poor user experience, and have very limited investor functionality, as they typically are just a repository for sharing investment-related documents.

Envisioning the Future of Fund Management

As the fund management industry evolves, there is a clear need for a more sophisticated and integrated technology stack designed specifically for the needs of private market fund managers. Here’s what we believe the future of fund management looks like:

• End-to-End Solutions: Modern fund management will be powered by software that integrates all aspects of fund operations into a single solution. From investor onboarding and compliance to capital raising, CRM, unit registry, and more, this approach ensures a single source of truth for all your investor and fund management data.
• Automation and Efficiency: Automation will play a crucial role in the future of fund management. By automating routine tasks and workflows, such as ID verifications, wholesale certifications, distributions, tax statements, and so forth, fund managers can focus on their core activities, raising capital, sourcing deals, and managing assets.
• Enhanced Investor Experience: The future will see a greater emphasis on enhancing the investor experience. Digital onboarding, digital subscriptions, easy access to portfolio information, streamlined communication, and the ability to update and manage key information will become the norm, driving investor satisfaction and engagement.
• Integrated Data and Compliance: End-to-end software solutions will provide a single source of truth for investor data, making it easier for fund managers to manage compliance and regulatory requirements. Pre-built reports and enhanced data transparency will reduce compliance risks and improve decision-making.
• Artificial Intelligence: AI will be integrated into this next-generation end-to-end software to give fund managers unparalleled insight into their data and powerful multi-step automation across workflows. For example, we imagine complex operational reports being dynamically generated by AI using natural language queries and tasks being auto-completed by AI agents across investor onboarding, compliance, and capital-raising functions with no human interaction.

Caruso: Revolutionising Fund Management

At Caruso, we are at the forefront of this transformation. Our fund management software is designed to address the challenges of legacy systems and pave the way for a more efficient and integrated future.

Caruso provides a complete end-to-end fund management solution that encompasses investor onboarding, capital raising, CRM, compliance, secondary market, unit registry, and more.

Initially developed as an internal tool within a funds management business, passionate interest and enthusiastic support from fund management peers saw Caruso established as a standalone software provider.

Tailored specifically for private market fund managers, Caruso provides a range of critical benefits, including:

Enhanced investor experience

Caruso provides a modern and intuitive investor portal that allows investors to digitally onboard themselves, subscribe to new offers without the need for paper-based forms, and effortlessly access portfolio returns, documentation, and transaction histories. This drives engagement and satisfaction among investors, strengthening their relationship with the fund manager.

Streamlining capital raising processes

Fund managers can utilise Caruso to streamline the entire capital raising process, setting up data rooms, inviting investors, tracking engagement, managing allocations, processing subscriptions, and closing out capital raises, all at the click of a button.

Boosting Operations Efficiency for Fund Managers

Caruso reduces administration costs and frees up resources by automating basic tasks and workflows, radically increasing operational efficiency. Managers are free to focus on core activities and strategic initiatives rather than being bogged down by manual processes.

Reducing compliance risks

Caruso reduces compliance risk for fund managers by providing data in a format and structure that makes sense to them, enhancing transparency and understanding. Pre-built reports tailored for fund managers enable the surfacing of compliance information quickly and easily.

Seamless integration with existing platforms

Caruso integrates seamlessly with a myriad of external platforms commonly used by fund managers, such as asset management software, accounting software and marketing automation software.

Transforming Fund Management with Caruso

Caruso’s innovative approach to fund management software offers private fund managers a robust solution to overcome the limitations of legacy systems.

By enhancing investor experience, streamlining capital raising, improving operational efficiency, and reducing compliance risk, Caruso positions fund managers for success in an increasingly competitive landscape.

Ready to transform your fund management operations with Caruso?

Contact us today to schedule a demo and discover how our end-to-end software solution can help you delight your investors and achieve your strategic goals.

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Frequently Asked Questions

What is Caruso?

Caruso's fund management software is an end-to-end solution designed for private fund managers to streamline operations, enhance investor experience, and reduce compliance risk.

How does Caruso improve the investor experience?

Caruso provides a modern and intuitive investor portal that allows for digital onboarding, easy access to portfolio information, and seamless subscription to new offers, enhancing overall investor satisfaction.

Can Caruso help with capital raising?

Yes, Caruso simplifies the capital raising process by providing tools for setting up and tracking investor engagement, managing allocations, and processing deposit and new unit issues efficiently.

What operational efficiencies does Caruso offer?

Caruso automates tasks and workflows, reducing administrative overheads and freeing up resources for fund managers to focus on strategic activities.

Is Caruso compatible with other software platforms?

Yes, Caruso integrates seamlessly with various external platforms commonly used by fund managers, such as asset management, accounting, and marketing automation software.