The Art of Choosing the Right System for GPs, LPs and Fund Administrators

For GPs, LPs and administrators, clean data is critical for investor reporting, valuations and fundraising. Inconsistent or incomplete data can lead to errors in capital calls, delays in financial reporting, compliance risks and a loss of investor trust. Poor data quality also hampers strategic decision-making, creates inefficiencies in fund operations and increases costs due to the need for manual corrections or reconciliations. Quality data management is essential to maintaining transparency, efficiency and confidence in private equity management.

A recent discussion with a client recalled a project that initially seemed perfect on paper. The system promised advanced features, but lacked the flexibility to adapt to the complex fund structures of the client. The client had to manage the more complex funds outside the system on spreadsheets, increasing risk and slowing down the processing time. The wrong choice can undermine your operations and erode investor confidence.

Every system has its own strengths and some will be better for your business than others. When evaluating your options, be sure to consider these three traits:

1. Flexibility: Can it scale with the growth of your funds?
2. Scalability: Will it handle increasing volumes of data and transactions?
3. Integration: Does it connect seamlessly with existing tools?

The best system will complement your current processes while anticipating future needs.

With thorough testing, you’ll ensure your system performs as expected under real-world conditions, identifies potential flaws early and minimizes disruptions post-implementation. Common oversights, like underestimating the need for full integration, can be avoided ahead of time.

Lots of things work on paper—be sure it will work in practice, too.

Equally important is team engagement throughout the project. Active involvement from key stakeholders ensures buy-in, facilitates better communication and helps uncover blind spots that might otherwise be overlooked. A well-informed and engaged team is more likely to adapt to new systems and processes, ensuring smoother transitions and stronger outcomes.

AI has come into its own over the past few years and has been infused into nearly every single tech stack. Many solutions integrate it into their own offerings and AI can play a critical role in streamlining data migration and building operational efficiencies for long-term growth. But AI adoption must be approached strategically. If you jump in without clear objectives or proper governance, you run the risk of over-reliance on tools that don’t align with your needs, creating inefficiencies rather than solving them.

With a measured approach, one focused on testing and understanding capabilities, organizations can leverage AI tools to automate data comparison, enhance quality control and simplify complex workflows during migration processes. For example, AI can detect discrepancies in large datasets, ensure accuracy in historical data transformations and reduce the time spent on manual validations. Beyond migration, incorporating AI into daily processes supports scalability by automating routine tasks, improving data insights and enabling teams to focus on high-value activities.

By taking your time, double checking your work and making sure you’re investing your time and resources correctly, you’ll ensure AI delivers on its promise of efficiency, accuracy and scalability while minimizing risks.

Many fund administrators rely on End User Computing (EUC) tools, like spreadsheets, to fill gaps in existing systems. While EUCs are quick fixes, they are prone to errors and inefficiencies. A strategic system implementation can reduce this reliance by addressing gaps directly within the platform. This not only improves accuracy but also enhances operational efficiencies.

As you examine your current processes and needs, keep an eye out for any EUCs that have unintentionally worked their way into your workflow and note them. The last thing you want is as you near the end of an expensive, months-long implementation process, you discover that you still have to use a spreadsheet workaround.

Know precisely what outcome you want before you choose a system. What does success look like for your organization? A clear vision ensures every decision aligns with your strategy. By focusing on flexibility, ensuring thorough preparation and addressing system gaps, GPs, LPs and fund administrators can make smarter investments that deliver measurable results.

Don’t be sold on promises. Know what you want, make sure your solution delivers on its potential and guarantee that it will solve the problems you actually have—before you commit.

GFT USA has been helping companies evaluate their system needs and apply appropriate solutions for years and we’re ready to do it for you. Contact one of our experts to learn how you can make your system selection and integration process simple, straightforward and successful.