We’ve seen an enormous amount of capital flowing into private credit over the past decade. But will this drive down returns? How can you stay ahead of the game?

Back in October Hanneke Smits, chief executive of BNY Mellon Investment Management stated that there were limits to “the amount of capital that private equity and private debt markets can absorb”. Ms Smits said that this saturation would “limit returns in the future” and as shown in recent data, the recent inflows in the private debt market have been particularly sensational, driving down returns.

So, what can alternative asset managers do?

We think competitive advantage – at scale – will increasingly be found by looking inward at creating repeatable processes and better use of data across manual, siloed systems. As we move into a new year and a new challenge, better data and tighter processes will be part of the way to competitive advantage. In 2021, return on automation and technology will become an increasingly important part of you generating returns across your investment portfolio.

Better returns on your technology spend?

We are currently working with a few alternative asset managers (including people in the credit space) and we see the same problem: there are silos of good working systems and processes, but often these silos are not well connected. This results in manual work-arounds which are costly, slow and make robust data collection and analytics harder. Our approach is to use Intelligent Glue (a small portfolio of automation tools) to connect and enhance these systems/processes – this is less risky and quicker than wholesale rip & replace.

Examples of projects

• Automating data collection from large number of sources
• Implementation of flexible data warehouse in the cloud
• Real-time data visualisation for management and trading
• Robotic process automation removing repetitive manual work
• Machine Learning to extract data from complex PDF documents

About psKINETIC

We support alternative asset managers by delivering intelligent automation solutions and better data. Our obsession is world-class implementation, using world-class tools.

Want to discuss how Intelligent Glue can help you automate? Get in touch:

Email: jo.hadden@psKINETIC.com

Web:   https://pskinetic.com/markets/capital-markets/

For over 10 years www.pskinetic.com has delivered intelligent automation to customers ranging from large multinationals to mid-size enterprises. We use a number of leading automation and reporting tools, including www.appian.com, www.blueprism.com and PowerBI. Our headquarters is in London and we have a team in India.