Deal flow in 2024 remains robust, but competition is fierce. To truly differentiate themselves, General Partners (GPs) need to move beyond chasing volume and actively source deals that create long-term value.

This requires a strategic shift. At the heart of a winning strategy lies the power of specialized deal management technology.

Thinking Beyond Volume: Sourcing for Value

For GPs who have historically focused on sheer deal volume, the increased competition and maturing market is changing the emphasis to value creation. Sourcing a high volume of low-potential deals that consume valuable time and resources.

Simply chasing deals is no longer a sustainable strategy. GPs that desire a more strategic shift will find technology to be a critical partner in identifying deals that align with their investment thesis and have the potential to create significant value in the long run.

By leveraging data integrations and analytics, GPs can better:

  • Intelligently manage and cultivate relationships with high-potential targets, communicating at the right cadence and analyzing all interactions to improve problem-solving and communication.
  • Perform more comprehensive due diligence that also more streamlined and efficient, allowing teams to better assess a deal’s true potential.
  • Collaborate across teams more seamlessly, enabling decisions to be made more quickly and with more insight.

The right deal management technology empowers GPs to source and evaluate deals with greater precision, focusing energy on opportunities with the highest potential for value creation.

Integration is King

When time and energy are best spent on value creation, GPs should no longer be satisfied with siloed data and clunky workflows. Instead, a seamless, integrated experience should align with existing workflows and include pre-built integrations with the data tools and applications that alternative investors already utilize.

This means one platform for:

  • Customer relationship management that integrates with the email and calendar applications they prefer, automatically capturing, analyzing, and synthesizing all target and partner interactions— and even scoring each relationship.
  • Fundraising and marketing that helps centralize, structure, and transform incoming data into actionable insights and accelerate capital raising efforts.
  • Market data, analytics, and reports from valuable third-party industry information sources.
  • Investor relations to facilitate secure, centralized, and professional communication to investors.

Deal management platforms that are built for ALTs investing will create a familiar and efficient experience by integrating with tools investor already use, and making labor-intensive processes feel more effortless.

Having it All with Automation

It may seem that more emphasis on value creation means a smaller pool of carefully selected deals, and hence, fewer overall transactions.

But, value doesn’t have to come at the expense of volume. In fact, this is where the power of automation can truly be felt.

GPs can achieve greater volume and value simultaneously with deal management technology capable of:

  • Automating workflows so repetitive manual tasks are handled effectively by technology, freeing up time to source and evaluate high-potential deals.
  • Automated data collection that integrates with various data sources, eliminating manual data gathering, tagging, and entry.
  • Automated data extraction from diverse sources, validating for accuracy and consistency and identifying missing information.
  • Automating certain communications and alerts that keep stakeholders informed and deals progressing efficiently.

The power of automation makes it possible for GPs to “have it all” — maintaining a strong deal pipeline without compromising on a commitment to value creation.

Unlocking More Volume and Value with ALTs Deal Management Technology

Firms that choose deal management technology specifically designed for the needs of ALTs investors will be better equipped to manage deal volume and value in 2024 and beyond. Learn more about how to capture a strategic advantage in our whitepaper.

How Asset Managers Can Break Away from the Pack to Create Value in 2024

 

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.