PoliBit Blog

Technology investments in CPA firms surged since 2021, with PE firms acquiring stakes in 11 of the top 30 U.S. accounting firms. This investment reflects recognition that manual tax reporting—consuming 100+ hours per fund annually—cannot scale to meet investor expectations and regulatory complexity across multiple jurisdictions.

At the end of 2024, 29,400 private equity portfolio companies existed globally—up 4% year-over-year—with 46% held since 2020. Yet 54% of PE firms still collect portfolio company data via email attachments and 61% rely on manually-built reports. This operational gap between portfolio scale and monitoring capability creates both risk and opportunity.

Private equity sits on $2.1 trillion in dry powder with 1.89 years of deployment runway—down from 2.02 years in 2023 but still representing unprecedented pressure to deploy capital. With $3 of fundraising demand chasing every $1 of LP supply, GPs face simultaneous pressure to invest existing commitments while competing for limited new allocations.

70% of GPs cite LP reporting as their top operational challenge. With ILPA releasing updated Reporting Templates in January 2025 and 37% of LPs now requiring weekly NAV updates, the reporting burden has never been higher—making automation essential for competitive fund operations.

AIFMD II entered into force on April 15, 2024, with national implementation required by April 16, 2026. The directive introduces stricter delegation rules, enhanced liquidity risk management requirements, and expanded reporting obligations that will reshape how alternative investment funds operate across Europe.

68% of firms experienced cyberattacks in 2023, with IBM reporting average breach costs near $5 million in 2024—a 10% year-over-year increase. As LPs elevate cybersecurity to a fundamental due diligence criterion, fund managers must demonstrate robust security postures or risk allocation losses.

Private wealth represents the most rapid relative growth segment in private markets, with executives predicting this capital source will outpace institutional growth. As mutual funds and ETFs begin offering private market exposure, fund managers must adapt their operations for a fundamentally different investor base.

Over three-quarters of U.S. private funds now use third-party administrators, up from minority adoption a decade ago. With the fund administration outsourcing market projected to reach $24.2 billion by 2033, understanding when to outsource—and when to keep operations in-house—has become a critical strategic decision.

GP-led secondaries reached $75 billion in 2024, accounting for nearly half of all secondary market activity. With continuation vehicles now representing 16% of sponsor exit volume, mastering this liquidity tool is essential for modern fund managers.

The NAV lending market grew 30% annually from 2019-2023, reaching $150 billion in outstanding loans. With subscription line supply/demand imbalanced after 2023 banking disruptions, fund managers need new liquidity strategies.

Global co-investment capital hit a record $33.2 billion in 2024. With LPs reserving 15-30% of allocations for co-invest opportunities, fund managers without structured programs are leaving capital on the table.

The EDCI reporting deadline is April 30, 2025. With 64% of LPs still considering ESG in investment decisions and Article 8/9 funds capturing 29% of European capital, non-compliance means missed allocations.

Secondary market volume hit $162 billion in 2024—a 45% increase. With LP-led transactions pricing at 94% of NAV, fund managers offering liquidity pathways are winning commitments over competitors who don't.

Family offices now allocate 30% of portfolios to private equity—surpassing public equities. With $5.4T in projected AUM by 2030, learn how fund managers can capture this institutional-scale capital with startup-level agility.

Fund managers now respond to 150+ DDQs annually, spending 2,000+ hours on repetitive questionnaires. Learn how operational due diligence automation prevents the 85% rejection rate and accelerates fundraising.

International investors bring capital—and compliance complexity. Navigate multi-jurisdiction KYC/AML, tax reporting, and payment processing with modern infrastructure.

Real-time analytics enable investment managers to spot portfolio risks early, optimize capital deployment, and demonstrate value to LPs with data—not narratives.

Investor demand for liquidity is reshaping fund structures. Explore evergreen funds, continuation vehicles, and hybrid models gaining traction in 2025.

First-time fund managers face institutional LP expectations without institutional budgets. Modern platforms deliver enterprise-grade operations at emerging manager pricing.

Discover how digital subscription management automates investor onboarding, reduces processing time by 75%, and ensures KYC/AML compliance across 300+ watchlists.

Manual capital call management creates calculation errors, payment delays, and reconciliation nightmares. Learn how automation saves fund managers $50K+ annually.

Waterfall distribution errors create costly remediation, tax complications, and LP disputes. Learn how automated calculations prevent mistakes and protect fund integrity.

International investors and cross-border payments create massive fee burdens. Learn how stablecoin payment rails reduce costs by 90% while accelerating settlement.

Limited partners increasingly demand real-time portfolio access and transparency. Learn why investor portals are becoming table-stakes for fundraising success.

Traditional fund formation costs $75K-$150K, pricing out emerging managers. Learn how modern platforms enable professional launches at 80-90% lower cost.

NAV calculation errors create audit issues, LP disputes, and compliance risks. Learn how automation eliminates the 40% error rate in manual quarterly valuations.

What makes a digital signature legally binding? Understanding IP recording, document sealing, and electronic signature compliance standards.