“Private equity has always been a people business,” said unquote” editor Greg Gille as he began his interview with Olivier Dellenbach, eFront CEO. More and more, it seems, it’s also becoming a software business. In an unquote” video interview recorded on July 3, 2012, Gille and Dellenbach discuss the current trends and coming changes in the private equity software solutions market.

Private equity software solutions have come a long way in the past few years, and they now play an integral part in the daily workflow of general partners (GPs) and limited partners (LPs) alike. In this interview, Dellenbach makes a number of key points regarding this rapidly changing market.

GP requirements

  • One of the main reasons for a GP to invest in a system is to better serve their LPs.
  • There will be growing demand for portfolio management solutions. Going forward, most GPs will focus on this.

LP requirements

  • More and more large LPs are buying software solutions to better analyze their portfolios, in a way that is similar to how GPs analyze their own portfolios.
  • The work of ILPA (the Institutional Limited Partners Association) has been instrumental in setting new reporting standards and best practices, all of which will drive demand for new software solutions to automate those processes.
  • Portfolio management is going to become a critical part of their IT systems, too. They need a means to understand where the value of their portfolios comes from.

Market consolidation

  • Although the number of vendors in this market has increased significantly over the years, the market will have to mature more extensively going forward to properly meet the challenges faced by the private equity industry.
  • There are lots of vendors of different sizes claiming to sell similar solutions. So there is some confusion in the market. How can a 20-person organization sell the same type of product as a 300-person organization?
  • The market is going to consolidate for one reason: client expectations will increase and meeting these expectations will require a great deal of resources, resources that smaller companies won’t have.

eFront’s future

  • Serving both GP and LP communities is a real advantage for us.
  • The LP/GP relationship will change dramatically in the coming years and we’ll work hard to ensure our products will lead that evolution.

Watch the entire 8-minute interview on the unquote video below or visit: http://www.unquote.com/unquote/analysis/2188747/sponsored-video-pe-software-solutions-market


To learn more about eFront’s solutions, click here.

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