GFT at LPGP Connect 2024: The importance of data, a plan and a guide
GFT USA was asked to share insights that we gained from our own experiences helping clients, delivering a panel discussion titled “Navigating the System Integration Journey”.
We’ve highlighted three critical steps for choosing and implementing the right asset management systems: ensuring your data is good, defining your ideal end state and working with a trusted advisor. Here’s a closer look at the key takeaways that we shared.
Three Steps to Successful System Integration
Good Data
In this age of AI, digital transformation and rapid innovation, good data is non-negotiable. As the saying goes, “garbage in, garbage out”. Even the best system or vendor can’t create value from bad data.
Good data is about creating and maintaining reliable processes for data collection, cataloging and maintenance. These processes ensure clean inputs, which drive transformative outputs—whether you’re automating accounting workflows or leveraging AI to forecast market trends.
For general partners (GPs), limited partners (LPs) and administrators, clean data is essential for accurate investor reporting, valuations and fundraising. Bad data can cause capital call errors, undermine investor trust, delay reporting and increase compliance risks. It also disrupts decision-making and adds operational costs by requiring manual corrections. Clean data ensures transparency, efficiency and confidence in private equity operations.
At GFT USA, we help clients optimize their data strategies, ensuring that foundational processes are in place before system implementation begins.
Define Your Ideal End State
Too often, companies leap into technology investments with vague aspirations, like “let’s do AI”. Without clear objectives, such decisions can result in tech debt, digital bloat, cost overruns and, inevitably, solutions that create their own problems.
In our panel at LPGP Connect, we emphasized the importance of defining your ideal end state before choosing a vendor. Knowing the results that you want ensures your decisions align with your long-term strategy. Sometimes, this clarity will even reveal that your current tools, used more strategically, may already meet your needs.
Selecting and implementing the right system is crucial for GPs, LPs and fund administrators. The right technology drives efficiency, growth and investor trust, but too often, vague goals lead to poor choices. At our LPGP panel, we warned of the risks related to rushing into decisions. One panelist shared how a system that seemed ideal at first failed to meet the needs of their complex fund structure, wasting valuable time and resources. When choosing a system, focus on three key elements: flexibility, scalability and integration. A system must complement current operations and support future growth.
Proper preparation is key to successful implementation. Start with clean, structured data, allocate skilled resources and conduct thorough testing. AI can further enhance the process by automating data comparison, improving quality control and simplifying workflows. However, AI adoption must be strategic to avoid inefficiencies. Relying on End User Computing tools like spreadsheets to fill system gaps can lead to errors. A well-implemented system reduces this reliance and boosts operational efficiency. With clear goals and thorough preparation, fund managers can make smart investments that align with their long-term strategy.
Bring on a Trusted Advisor
Choosing a system and beginning the system integration journey can be overwhelming. Decision paralysis, information overload and overlooked inefficiencies are common challenges, and this is where bringing in a trusted advisor can be invaluable.
We shared examples from our own partnership with LemonEdge, an industry-leading accounting platform for private equity. With GFT’s guidance, clients have used LemonEdge to scale their operations and achieve transformative outcomes.
A third-party expert, like GFT, offers an outsider’s perspective to identify inefficiencies, uncover blind spots and guide you through the selection and implementation process. We bring clarity to complexity, ensuring every decision serves your broader business goals.
Connecting at LPGP Connect
Beyond the panel, we loved being able to connect with colleagues, partners and even competitors in person. In today’s remote-first world, events like these are a rare chance to strengthen relationships and exchange face-to-face insights.
Throughout the day, we discussed shared challenges, customer needs and ways in which to enhance client experiences across the industry. While competition is natural, events like LPGP Connect remind us that collaboration is essential in driving innovation and delivering value to our clients.
Retail clients can get in the game now, and for that matter, more creative solutions like the ones presented by KKR and Capital Group will only ensure that this trend continues to accelerate.
Key Insight: Alts are shaking up a static industry, and they are already becoming a major part of serious portfolios. It’s time to give them a real look—before your competition does.
Final Thoughts
Being part of this year’s LPGP Connect event in New York was a privilege. Events like these are the places where ideas take shape, partnerships are forged and innovation thrives.
Migrating to a new system can feel like a daunting journey, but with good data, a clear end goal and a trusted guide like GFT by your side, it becomes a clear, confident process.
