In recent years, the number of private equity and venture capital firms has skyrocketed, but the corresponding growth in investable assets hasn’t kept pace. This makes the deal flow environment fiercer than ever, and alternatives investors need every edge they can get.

So why then, are so many investors still trying to retrofit traditional CRM systems for their unique needs?

CRMs that aren’t specifically designed for alternatives investors are often just plain clunky. They require excessive manual data entry that is far too cumbersome for investors juggling multiple opportunities, and generic workflows don’t cater to the specific stages and tasks involved in a private equity deal. Deal management in private equity is a more complex process, and today’s investors need to be act fast, but be thorough and strategic.

Here’s where tailored fintech can transform deal making and empower investors to win in the complex and competitive landscape.

Relationship Management

Strong relationships underpin investors’ ability to source and close deals, and traditionally, these relationships are managed across a multitude of interactions that involve email, calendar apps, handwritten notes, and more. However, this approach crumbles under the weight of thousands of contacts and hundreds of ongoing deals. That’s when valuable relationships can suffer, opportunities are missed, and deals are lost.

FinTech not only streamlines relationship management, but introduces a new level of relationship intelligence.

Instead of manual management, data collection and organization across email and information portals can be automated. What’s more, relationship intelligence technology can capture, analyze, and synthesize massive amounts of client and partner interactions and synthesize the information into a quickly understood indicator that aligns with the relationship goals they have set.

As the technology is automatically assessing and reporting the health of each relationship, dealmakers can quickly understand and focus their attention in the best places to continue moving these relationships in the right direction.

Deal Sourcing

Researching potential deals is critical, but scattered data turns this important task into a tedious, time-consuming exercise. Between searching through multiple databases, switching between data providers, and manually entering information into spreadsheets, deal teams spend an average of 34 hours researching 80 targets before closing just one deal.

A central tech-enabled hub for the entire deal sourcing process acts as a single source of truth for documents, opportunities, research notes, and can even integrate with external data providers. Investors can conduct research efficiently from a single platform, using views tailored to their roles and preferences. Pre-built API integrations with leading data providers like Preqin, Pitchbook, and Crunchbase minimize manual data entry. Key financial information is automatically updated in real-time, ensuring users have access to the most current insights.

What’s more, AI engines can further streamline the process by reading research notes, capturing contact details, automatically linking notes to related information, and facilitating collaboration across teams. Powerful automations can also be built to suit specific firm workflows, ensuring maximum efficiency throughout the deal sourcing process.

Pipeline Management

Once you’ve built a strong relationship with a promising target, it’s time to convert that momentum into a successful deal. This means managing the pipeline, executing workflows, and maintaining good communication to get the deal across the finish line. Manually entering data and navigating through the multiple layers of a traditional CRM are only going to slow the process and drain valuable momentum.

Speed and efficiency are the name of the game.

Specialized deal management fintech can leverage your existing data and information from integrated third-party providers to automatically populate data fields, minimizing manual entry. AI auto-tagging can automatically assign emails and attachments to the correct deal, centralizing all deal data without user intervention. Customizable workflows simplify task management, triggering specific tasks at different deal stages and facilitating a smooth and efficient handoff between teams.

And though keeping deals moving forward requires constant monitoring, investors can afford to get bogged down in minutiae. That’s where “momentum indicators,” presented in understandable terms like “Negative,” “Neutral,” or “Positive,” highlight deals that might be stalling and require attention. Intuitive, graphical pipeline reports are available with a click, allowing dealmakers to quickly assess the overall pipeline health. Dealmakers can stay on top of critical moments and ensure every deal has the momentum it needs to close.

Advanced Deal Management for Alternatives Investors

Dynamo’s advanced fintech platform is designed specifically for the alternatives ecosystem. It has the power to transform deal management and give investors a clear performance edge. Gain more insight to the power of fintech for deal management in our executive brief.

Three Essential Capabilities You Need from Your FinTech Today to Close More Deals Tomorrow

Henry Wadsworth is the Vice President of Sales, Americas at Dynamo. Henry leverages over 10 years of experience in business development and global sales, most recently leading the General Partner business unit for Dynamo in Singapore. Prior to Dynamo, Henry managed the Business Development function at Preqin, where he was responsible for engaging with businesses worldwide to help them better understand and respond to investing and fund management trends. Connect with Henry on LinkedIn.