Investment managers need to adapt and navigate the changes created by the pandemic to compete and successfully raise capital. According to INREV, 46% of investors across the globe are expected to increase their allocations to real estate over the next 2 years. With renewed investor demand for long-term core and core+ strategies, the need for operational oversight and technology should be at the forefront of these firms’ priorities.
During the last 12 months, investment managers have been focused on gaining a better understanding of their customer’s business, lease and revenue exposure. This is so they can look to diversify, mitigate risk and attract the right mix of tenants to suite their properties and meet their future revenue objectives. However, this level of transparency is being fuelled by the growing demands of investors and internal stakeholders who want more transparent and detailed information.
With this drive towards better customer understanding, relationships and satisfaction, the focus is centred around better collaboration and scalable data strategies, which was highlighted in the latest KPMG survey.
The term “single source of truth” has become more prominent in discussions as businesses recognise the benefits and importance of integrated technology. However, investment managers face challenges when working with outsourced operating partners, asset managers and fund administrators, as they rely on them for this information to make decisions. With many receiving monthly reports in a variety of formats from different parties, there is a need to gain more control and find consistency.
Having the right solution in place is critical in providing better transparency, analytical data and enhanced communication.
So, what should an investment management firm consider?
1) Your finance, asset and investment management teams need data ownership to gain constant access to the right qualitative and auditable data to make better decisions and identify issues in the moment. By taking control of this data, you can drive transparency between owners and investors, helping to reduce risk, increase investor confidence and create healthier communication between all parties.
2) Better data can enhance operational performance, achieve ESG targets, and streamline business operations. You need to implement an achievable data strategy and utilise the right technology platform to gain actionable insights, achieve objectives and scale the business more effectively. However, this can be challenging for investment management firms who do not have a robust data strategy or the resource to adapt, which is where an experienced vendor can help.
3) It can be daunting for investment managers to adapt or overhaul their operating model to better harness data, however, with the push to online, you need to have a flexible environment that is easily scalable. This requires leadership vision, appetite, commitment, team buy-in, effort and investment at a level not often considered. To make any transition while maintaining the flexibility your teams are used to is often the most challenging part, which is where a well aligned stakeholder and project team are essential for success.
4) Platform solutions are continuously evolving to meet the demand of the market and provide that reassurance, which is paramount for facilitating growth and communication between asset owners and investors. By taking ownership and moving your technology in-house, while still working with your outsourced partners, you can access relevant data in real-time, helping to make more effective and informed decisions.
Modern technology platforms for investments are providing better insights into data, improved communication between platforms, investors and asset owners, as well as greater visibility of your portfolios. Having the right solution in place is critical in providing better transparency, analytical data and enhanced communication.
Yardi’s single connected platform improves communication with current and prospective investors, enhances data insights in real-time and works with third-party solutions. It helps to eliminate disparate systems, providing a single source of truth across your organisation, to your investors and asset owners.
See how Yardi’s technology can help your real estate investments grow.