SimCorp, a provider of integrated, front-to-back, multi-asset investment management solutions and services to the world’s largest buy-side institutions, has partnered with Colmore, a technology-driven private markets specialist, to deliver a holistic data service for private markets asset management.
Monitoring over USD100 billion in assets, Colmore has revolutionised private markets asset management, bringing it into the 21st century, with the delivery of real-time portfolio monitoring, standardizsd data management and greater transparency of private equity fees. The complete service is now available within SimCorp’s Alternative Investments Manager offer, empowering the buy side with consolidated private and public markets asset workflows and data management, in one core multi-asset class investment management platform.
The growth of private markets has rapidly been embraced by institutional investment, but throughout its expansion, Limited Partners (LPs), such as pension funds, asset managers and even insurance firms have consistently struggled to understand their portfolios in real-time, let alone process the vast volumes of unstandardised private markets data, or make sense of quarterly PDFs that become altogether redundant in the midst of a market event. Throughout heightened conditions in 2020 and with many firms outsourcing parts of private markets asset management or running off siloed best-of-breed systems, it has become increasingly challenging to get an accurate, real-time view of private markets exposure, to reliably determine overall portfolio risk and impact to the firm’s P/L.
To address these pain points and consolidate private markets asset management into a firm’s core investment management platform, rather than a standalone strategy, the partnership integrates Colmore’s INSIGHT (Data Management) and FAIR (fee) services within SimCorp’s Alternatives Investments Manager offer. This delivers clients one investment truth across both public and private markets. Built by a team of former LPs with over 25 years of private equity experience, Colmore’s services intuitively understand the rich functionality, simplified workflows and business outcomes desired by LPs investing in private markets.
Covering over 3,000 invested funds and 60,000 assets, Colmore’s INSIGHT service is empowered by proprietary machine learning technology, called STRIDE, together with deep team expertise to collect, validate and extract all portfolio information, from the invested fund, to the underlying assets. Delivered in real-time, it consistently provides investors with portfolio monitoring and analytics, to inform on exactly where their positions and holdings are. Colmore’s integrated data management service for private markets adds further value to SimCorp clients already using SimCorp DataCare, and delivers the buy-side market a complete public and private markets data management service.
SimCorp will also integrate Colmore’s FAIR service, which tackles the complexity of tracking private equity management and incentive fees, with a systematic validation service. Colmore’s ongoing approach to tracking and validating management fees, carried interest and expenses, addresses the rising concern from LPs over their fiduciary duties to stakeholders. The service creates a simpler, more cost-effective way to achieve greater confidence in underlying fund charges.
Hugues Chabanis, Vice President, Innovation at SimCorp: We’re pleased to introduce Colmore as an innovative and reliable partner in our fast-growing open ecosystem. Colmore’s vision for delivering a complete service, aligns with our own consolidated front-to-back approach and reinforces the partnership further. When we launched the Alternatives Investments Manager offer three years ago, our vision has always been that multi-asset portfolios, including private markets assets, should be consolidated into a core front-to-back investment management platform and not run in siloes. We are confident that Colmore’s private markets services will complement the capabilities of our Alternatives Investments Manager, market-leading IBOR (Investment Book of Record) and DataCare offer, providing SimCorp clients a consolidated offering that ultimately meets their private market needs and delivers on their overall business outcomes.”
Alex Tarantino, Commercial Director at Colmore, adds: The team at Colmore are thrilled to partner with SimCorp, a pillar in the investment management software industry. Like SimCorp, we’ve grown strong client partnerships on the back of our unwavering focus on the technology and services we offer. We are guided by the in-house private asset experience we’ve honed over 25 years and as former LPs, we know how important extracting and analysing private markets data is, to accurately understand portfolios. It is our belief that combining the asset management process together with a strong data management service designed for private markets, will not only address the present day challenges LPs face, but also optimize the asset management process with more control and clarity long into the future.”