Synthesizing GP Data to Amplify LP Decisions
How to get more performance data, portfolio metrics and track record information in front of private markets investors – with artificial intelligence (AI).
Executive Summary:
- This may be surprising, but General Partners (GPs) want limited partners (LPs) to have access to more of their data. The challenging part is getting the data to investors in an easy, seamless way.
- Using AI-powered digital platforms to forge connections between GPs and LPs can help managers efficiently reach more qualified audiences and help investors find the right investments.
- When GPs and LPs use connected platforms, they can make informed investment decisions with the most up-to-date data faster.
Much like the music industry evolved from selling physical CDs in the 1990s to digitally streaming millions of songs directly to fans in the 2010s, private markets data is also looking to evolve – moving from unstructured, chaotic data sources to AI-powered, standardized data systems. The objective: provide investors with actionable investment insights on demand so they can allocate capital with greater confidence and speed. So, how can we, as an industry, make this happen?
Say hello to Daphne, the private markets synthesizer
Daphne, an AI-powered data and collaboration platform for the private markets, digitizes a GP’s fund information once and distributes it across multiple channels, creating a scalable “one‑to‑many” connection that reduces manual effort and shortens time‑to‑insight for investors. We think of it as a permissioned private markets synthesizer, providing investors with preference- and permission-based straight-through data processing when they need it.
Here's how it works:
First, a GP organizes core fund data using a clean, repeatable workflow that replaces the meticulous maintenance of individual data packs (think: fundraising updates, quarterly performance, and portfolio company operating metrics). The GP then sets audience‑appropriate permissions and publishes to qualified third-party channels, so current and potential investors can track, benchmark and diligence new investment opportunities. In other words, Daphne automatically synthesizes otherwise unstructured and disparate data, transforming information into a form that matches investors' tastes. The result: LPs can evaluate investment options faster and with more consistency than manually processing multiple PDFs and spreadsheets. And for the GP, it gives them the unique opportunity to tell their own story (much like an “Artist page” in the music streaming world).
Screenshot is illustrative of how a GP can set permissions when submitting their data.
Over time, GPs can routinely update performance details, and LPs can confidently use that data to select investments. More efficient and consistent access to trusted data means that investment teams can focus on needle-moving questions like:
- How does the sector exposure of a new opportunity complement my portfolio?
- How does this manager perform against peers and public market alternatives?
- What are the levers of value creation utilized by this manager?
The upshot – less duplicative work for GPs and more substantive information for LPs.
Trusted broadcaster
Like the music industry's shift to digital streaming, Daphne enables digital connections between GPs and investors via channel platforms like Hamilton Lane, reducing one‑off data requests to help managers efficiently reach more qualified audiences and communicate their investment strategy, performance and differentiators.
Screenshot is illustrative of how HL clients and investment teams can view GP information within our proprietary platform.
Permissioning data with trusted partners like Hamilton Lane allows GPs to share accurate and timely fund information with intended counterparties (i.e., avoiding “publish‑to‑everyone” models). This ensures that data is shared with intention and not accidentally with competitors or unqualified investors.
In summary, GPs can more easily keep fund information current and accurate by providing first‑party data directly to decision‑makers. This can eliminate months of manual effort per fund annually, which gives GPs time back to focus on their raise and portfolios.
Play: Greatest Hits
Private markets data analytics is moving in the direction of “always‑on” discovery (think: new music releases), thanks to the continued adoption of technology and innovation across the asset class. It’s becoming increasingly possible to get coveted GP data in front of target LPs in the right format at the right time. Together, Daphne and connected platforms like Hamilton Lane can help LPs hear GPs’ greatest hits loud and clear.
For questions about how to access technologies like the ones described in this paper, please reach out to our Technology Solutions team.
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