This piece is the following instalment from our latest report: 'The LP experience: The shift of client service from cost-centre to competitive core', which focuses on the industry trends that are shaping LP perspectives and making the client experience a strategic priority. Here, we turn to the GP perspective and delve into what is required to architect the modern investor experience in private markets.

The role of client service has shifted from cost-centre to a strategic priority for alternative asset managers. Today, the industry sits at an inflection point – with the rise of multi-channel distribution, increased product complexity, and heightened demand for a client experience that is comparable to the modern standards we expect in public markets. However, today’s operating model, which was built to process institutional LPs at low volumes, does not scale to meet tomorrow’s growth ambitions. GPs are increasingly asking themselves what the client operating model of the future looks like, and what changes are required to compete in this new era for alternatives.

We spoke to 41 alternative asset managers to understand how the investor lifecycle is managed today and what their priorities are for the future. Client experience shows up broadly across the main three challenges (see chart above), but it also concentrates at the top – with nearly half of GPs ranking it as their highest priority pain point, closely followed by ‘operational siloes across the lifecycle posing challenges to scale’.

In this paper, we delve into the key factors for GPs to consider when architecting the next-generation of client experience in private markets, and how to do so at scale.