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See a map of relevant vendors in the deal sourcing and execution space for private equity and venture capital. We cover software, data, and intelligence services - CRM, market data, diligence, alt data, relationship intelligence and more…
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As Preqin announces the acquisition of Colmore, PE Stack takes a look at the deal and how the stated strategy compares to other integrated market data and SaaS solutions in the competitive LP-focused solutions space.
Vista Equity Partners has acquired AltaReturn, the provider of end-to-end, Microsoft based software suites. The builder of private capital and family office enterprise software solutions will be merged with existing Vista portfolio company Black Mountain Systems, a builder of innovative, workflow solutions that service a wide variety of closed and open-ended assets classes.
“We’re honored to be joining forces with both the world’s premier software investor, Vista Equity Partners, and with market leader, Black Mountain,” said Allvue CEO and AltaReturn co-Founder, Rey Acosta. “This combination marks a monumental leap forward for fund managers, investors and administrators in the alternative investments industry. Our commitment to Allvue’s clients is straightforward: to develop the most innovative technology in the market while providing an exceptional level of client service."
The newly merged firm will be known as Allvue Systems. At PE Stack we are eager to see what will happen when AltaReturn’s deep expertise in front, middle and back office software combines with Black Mountain’s wide array of services, including: portfolio management, trade order management, compliance, research management, investment accounting, performance attribution, customer relationship management, investor reporting, enterprise data management and data warehousing.
A combined management team will lead the merged entity with AltaReturn co-Founder Rey Acosta as CEO. Black Mountain’s co-CEO, Kevin MacDonald, will serve as COO of Allvue.
Black Mountain’s clients consist of many of the world’s leading investment managers, credit funds, hedge funds, private equity, direct lenders and banks which use the company’s platform to manage all varieties of loans, fixed income, alternatives, derivatives, equities, and FX. AltaReturn count many major closed-ended fund managers amongst their client-base, including Oak Investment Partners and Menlo Ventures.
The past few years have seen software suppliers previously focusing on one specific area shifting toward providing a suite of services ranging from front to back office. While it is now normal for providers to be supplying a wide range of connected products, AltaReturn has been more successful than many in getting clients to adopt the entirety of their suite and benefit from the interconnectedness of data across different firm functions. It will therefore be interesting to see how the combination of AltaReturn’s platform with Black Mountain will further enhance the value propositions of the newly combined companies and what this will mean for existing clients of the two firms.
Deutsche Bank served as exclusive financial advisor to AltaReturn, and K&L Gates LLP was the company’s legal advisor. Jefferies LLC acted as financial advisor to Vista and Kirkland & Ellis served as legal advisor to the firm.
At PE Stack we are constantly monitoring the dynamic market for private equity and venture capital software and data. Over the past year, we have tracked numerous deals, partnerships and acquisitions on top of new products being launched and even a couple of companies closing up shop. You can see information of all active data and software businesses on our free to use Vendor Profiles platform, the industry’s leading source of software and data vendor intelligence.
The needs and requirements of private equity and venture capital LPs are evolving. While the personal relationships which historically underpinned a firm's ability to attract and retain LPs remain important, the asset class' increasing size and complexity is putting more pressure on LPs to maintain a robust portfolio based on frequent and high-quality analysis of existing and potential new GPs.
Managers coming to market today will experience a fundraising market unprecedented in terms of competition where providing access to high quality reporting tools and data on demand can make the difference in achieving a fundraising goal. It is essential for fund managers to align with LP demands for high quality reporting, and we believe that the choice is no longer whether or not to implement an LP Portal, but which one will most effectively serve to enhance a GP's brand among existing and potential new LPs.
The LP Portal is often the primary means for investors to interact with a fund and therefore plays a big role in brand-perception. Many of the leading solutions will allow for a firm to brand the portal in their image, including eFront's Investment Café which facilitates customization to reinforce a firm's style and image. A good UI (user interface) is essential so the LP can find the information they are looking for and enter their own data easily.
The best LP portals will include data visualization, access via mobile devices and the ability to produce high quality reports for investors. Certain platforms, including Cobalt, feature native third-party data integrations to allow for the production and distribution of benchmarking reports.
As fund information is sensitive, the portal needs to be very secure. In fact, one of the best reasons to use a portal is due to potential issues with mail and email, both in terms of preparation and delivery. Products such as Altvia's Sharesecure are now utilizing enterprise-grade features such as two-factor authorization and virus scanning to ensure compliance and maintain security. Dynamic watermark creation is another feature which not only lowers the possibility of human error, but also saves IR professionals days of time over the course of a fund.
The trend among LPs from large pension plans to nimble family offices is for increasing demand for up- to-date, granular data about the fund's portfolio, prospective deals, cash flow and benchmarks. In addition, information related to sources of investor alpha, compliance and risk should be provided and forms a major part of offerings from firms such as LP Analyst. Firms seeking a solution designed primarily around facilitating due diligence can leverage tools such as eVestment's TopQ. Both LPs and GPs will appreciate the more prosaic aspects of a quality portal such as an easier and more secure transmission of their annual K1s along with the ability to upload changes in their address and banking information.
It all adds up to better customer service, brand building and relationship cultivation while leaving investor relations professionals with more time to engage in value-added activities instead of menial tasks. Certain platforms, such as Capital Dynamics spin-off Colmore, also offer outsourced investor reporting in addition to a quality portal which can further enhance the LP experience in a cost-effective manner.
One of the most common questions we hear at PE Stack is whether to build a collection of standalone applications, or select a single suite of services from one of the primary software suppliers, the majority of which offer portals. While each procurement process is different, there are some clear benefits to using a platform such as AltaReturn which offers users the ability to integrate back and front office tools with its investor portal.
Our Vendor Profiles platform tracks over 150 software and data vendors, including more than 30 which offer an LP portal. We help GPs, LPs and service providers to identify potential solutions via our free to use, powerful online database and by providing bespoke consulting services. For instant access, please visit www.pestack.com/vendor-profiles or email us at info@pestack.com
