Key takeaways from the LPGP CFO/COO Private Debt Summit

The alpha in data

• Making sense of data remains a key concern for both LPs and GPs. The panellists emphasised that data is only valuable when you know the specific questions you want to answer and can tell a coherent story with the results. Having a clear purpose for data analysis is crucial.
• The current methodologies for data aggregation and interpretation are fragmented with early user case Artificial Intelligence (AI) strategies are emerging. Developing a fully integrated data chain that collates and integrates information from multiple sources is essential for streamlined operations and better decision-making.

Cybersecurity

• As the debt environment becomes increasingly connected, the threat of cyberattacks has risen. The panellists agreed that outsourcing cybersecurity strategies is often preferred due to the complexity of the threat landscape. Reliance on outsourced providers to deliver comprehensive controls and reporting is essential to provide comfort for both GPs and LPs. Furthermore, these outsourced providers should be prepared for deeper levels of due diligence to ensure robust protection.

Artificial Intelligence

Despite advancements in AI, maintaining close relationships with portfolio companies remains paramount. Regular, at least quarterly, communications are essential. However, there are several areas where AI can be effectively deployed:

• Power Automate: automating everyday tasks to reduce resource consumption on repetitive tasks.
• Portfolio Monitoring: AI-based tools can scrape and assimilate data, producing valuable analytics such as Equipped AI: Equipped Intro – Private Debt demo
• AI-powered RFP response tools, like Loopio, can improve the speed of drafting and reviewing proposals.
• Microsoft Co-Pilot providing a virtual assistant to help prioritise your day.
• AI can assist in reviewing and drafting legal documents, streamlining the process.
• Opportunities to integrate AI tools, like ChatGPT, with current software solutions are on the rise, enhancing overall productivity.

ESG (Environmental, Social, Governance)

• Sustainability implies a company’s ability to last for the long-term. The integration of standardised ESG criteria into loan reporting can help recipients determine future performance indicators.
• This integration ensures that sustainability considerations are consistently factored into financial evaluations, promoting long-term resilience and responsible investment practices.

At Belasko, we’re committed to staying at the forefront of industry developments and supporting private debt managers with cutting-edge fund and loan administration solutions, underpinned by best-in-class technology and our expertise. If you’d like to find out more about how we help private debt fund managers, get in touch with Ross Youngs ([email protected]).