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Why AIFs Need To Harness Cutting-Edge Tech Solutions For Efficient Deal Flow

The alternative investment management industry is expanding globally with all types of investors embracing alternative investment strategies, from retail to institutions and even intermediaries. Due to the overall potential of the industry to give way to volatility, include uncorrelated asset classes, and improve income, it also holds the ability to meet the unique financial needs of investors effectively.

According to a recent study, the global alternative AUM is expected to reach $23.21 Tn by 2026. As the overall demand for alternative investment firms continues to grow, the light is shining equally bright on alternative investment management. Traditional and outmoded industry processes are being effectively replaced by scalable, digitised technologies that efficiently minimise overall time and effort to create highly meaningful operational efficiencies for investors, advisors, and investment managers.

In today’s fast-paced and data-driven landscape, alternative investment management requires robust technological solutions to tackle operational challenges. With the right tools and platforms, firms can enhance their decision-making processes, improve operational efficiency and deliver superior performance to investors.

Safeguarding Deal Flow through Cutting-edge Tech Solutions

Talking particularly about deal flow, the next-gen alternative investment platforms ensure efficient sifting through multiple deals to arrive at the desired outcome. Digital transformation, in the form of process automation and the utilisation of software-as-a-service (SaaS) solutions, has positively impacted the deal flow process. Further applying machine learning (ML) and artificial intelligence (AI) models can ensure accurate data interpretation and drive improved deal outcomes.

Let’s have a look at certain benefits of advanced tech solutions when it comes to deal flow:

  • Quick Deal Sourcing: Traditionally, deals were sourced through intermediaries, but data and technology are now being leveraged to source deals. It entails connecting to online databases and identifying potential investment opportunities that would otherwise go unnoticed.
  • Efficient Deal Evaluation: Deal evaluation is a high-energy, fast-paced process with constantly changing requirements. An advanced deal management platform with real-time data sharing and collaboration features can significantly improve overall efficiency. It enables deal teams to respond to issues that arise during the deal evaluation process with greater speed and efficiency. Advanced technological solutions also aid in making quick decisions about the next set of steps.
  • Improved Data Access: Deal teams are expected to make relevant decisions based on the most current and meaningful information. Closing deals significantly depends on how quickly the information is made available. However, deal teams may be spread across multiple office locations, posing challenges to the flow of critical deal data. An advanced deal management platform allows for real-time data sharing, ensuring that critical data is accessible to relevant team members and stakeholders regardless of location.
  • Data Centralisation: Data fragmentation, or the duplication and updating of information across multiple locations without proper version control, has a negative impact on deal management. A smart, automated deal management platform provides a single source of truth and eliminates the risks associated with working on multiple versions of documents. As a result, the deal team can make more accurate and timely decisions.
  • Improved Decision Making: Advanced deal management platforms offer robust features to generate customisable reports and analytics that provide insights into the entire deal management process. This allows deal teams to assess the progress, identify bottlenecks and evaluate the effectiveness of the deal management process. Further, the availability of relevant metrics and analytics strengthens data-driven decision-making.
  • Future Outlook: The rapid development and adoption of new platforms promise an exciting future for the alternative investment industry. However, it all comes down to individual investment managers to maximise future potential. Alternative investment firms that are currently anchored to traditional business processes while imposing complex, challenging processes on potential investors will struggle to grow or maintain their assets. Simultaneously, forward-thinking alternative investment firms that continue to embrace efficient, cutting-edge technologies will be able to position their funds for significant global growth from a diverse investor base. The introduction of new solutions by leading providers will fuel growth. These cutting-edge technologies represent the critical link required by alternative firms to create an intuitive, efficient interface around the alternative investment infrastructure.


The deployment of an innovative, tech-driven platform for deal flow management offers a wide range of benefits, including efficient deal flow management, rapid and highly accurate decision-making and improved workflow velocity. These advancements empower alternative investment management firms to effectively navigate the complexities of deal flow, ensuring smooth operations and maximising opportunities for successful transactions.

By leveraging innovative tech solutions, alternative investment firms can streamline their deal flow processes, enabling efficient deal sourcing, evaluation and execution. These solutions automate repetitive tasks, eliminate manual errors and provide real-time insights and analytics to aid decision-making.

Another key aspect of safeguarding deal flow is using advanced data analytics and machine learning algorithms. These tools help identify patterns, trends and correlations within vast amounts of data, enabling investment managers to make informed decisions based on accurate and timely information. With data-driven insights, firms can identify promising investment opportunities, assess risks effectively and optimise their deal flow strategies.

As the industry continues to evolve, staying at the forefront of technology adoption will be essential for alternative investment management firms to thrive in a competitive landscape.

Authored By: Ankur Agarwal (Co-founder & CTO, PE Front Office)

Published In: Inc.42