Investment management software: Why you need it

There’s little to no dispute that tech and automation drastically improve investment operations, but as a recent Forbes article indicated, “CRE investors want more automation, smoother processes, and the best data available, but the desire to close more deals today prevents them from spending time assessing how to build their tech stack.”

It seems that the state of mind shared by many GPs is that investment management software is a “nice to have “rather than a “must-have” tool.

Investment managers also have concerns that the onboarding process and the time it’ll take to adapt to the new tech will hinder their ongoing operations.

There are two answers to this concern:

1. It’s worth it. Real estate firms transitioning to investment management software see drastic, tangible improvement across all aspects of their operations, from a boost in their ability to raise capital, to shaving off 20 hours/week on their administration work.
2. The transition is smoother than they imagine. Top software providers offer success assurance experts to assist real estate investment firms in transitioning smoothly to new technology. They also help with data migration, education, and investor onboarding, ensuring a quick start.

So, what’s the big deal with investment management technology, and why do you need to integrate it into your operations?

How technology is revolutionizing investment management for GPs

GPs use a variety of solutions to manage investment operations:

• Manually maintained spreadsheets.
• Generic cloud storage for documents.
• Emails and phones for email communication with investors and document delivery.

All these solutions have the same underlying problem:

• They demand manual work, which is time-consuming and error-prone.
• They don’t have a specific design for real estate management, so they lack the capabilities to satisfy real estate management needs.
• They work as separate tools, with little to no integration, leading to even more manual work.

Cloud-based investment management software solves all these problems by giving GPs one management platform with all the software tools to handle investment operations from start to end:

• Deal marketing and fundraising
• Ongoing investor communications
• Investor relations management
• Document management
• Investor reporting

Let’s dive deeper into what is investment management software and how it helps GPs streamline investment operations.

What is investment management software?

Modern investment management software is a cloud-based platform that enables the GP’s team members (such as investor relations or marketing managers) to conveniently manage all ongoing investment operations.

The LPs can access their portfolios through an Investor Portal that displays their investments, metrics, documents, and open deals they can invest in. LPs can also communicate with their GP through the portal, send signed documents and see live updates.

The essential features of investment management software

The essential features of any sound investment management software are:

• Investor CRM, where investor relations managers can view all investors, manage contacts, and assign tasks
• The Investor Portal, Where investors can log in, view their portfolios, and subscribe to new deals
• Fundraising enablement tools like data rooms and personalized subscription flows for individual investors
• Document management center, where users can upload, sort, search and send documents
• Reporting tools to help GPs create customized personal reports, capital calls, and distribution notices, they can send to their LPs

Key Benefits of Using Investment Management Software

Adopting investment management software offers numerous advantages for both GPs and their LPs:

• Enhanced efficiency: Automation of manual tasks accelerates workflows and reduces errors
• Data-driven insights: Access to real-time data empowers informed and strategic decision-making
• Investor satisfaction: information transparency, convenience, and faster communication help foster trust with investors
• Faster fundraising: GPs can expedite their fundraising lifecycle, cut red tape, and remove blockers

How Agora’s solution helps GPs reach their full potential

Agora empowers GPs to excel in what they do best: finding new opportunities, raising capital, and ultimately driving profits for themselves and their investors.

Agora’s all-in-one investment management solution has a proven track record of accelerating capital-raising operations while drastically reducing operational costs.

With Agora, you can:

• Provide your investors with a user-friendly Investor Portal, fully customizable to fit your brand
• Stay on top of all investor relations effectively with the most advanced CRM in the market
• Automatically generate and send customized statements, capital calls, K-1s, and distribution notices with one click
• Enjoy a G2 award-winning onboarding customer support team

With over $80B AUM and 40,000 managed LPs, Agora provides investment firms like Iridius Capital and Helu Capital with tools to raise capital faster, delight their investors and streamline all aspects of their investor relations management.

Conclusion

Investment management software has transcended from being a mere technological advancement to a necessity for GPs seeking success and growth.

As the real estate investment landscape becomes more competitive, embracing technology-driven solutions like Agora becomes a strategic imperative for GPs aiming to thrive.

Are you interested in learning more?

Modified Date & Time : 28 Mar 2024, 09:25 am

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Author

Gilad Idisis

Gilad is a content manager at Agora. He holds a master’s degree (LL.M.) from Columbia Law School and a degree in Practical Electronics Engineering. Before becoming a content manager, Gilad practiced law as a commercial litigator.

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