DiligenceVault, a digital diligence platform that delivers data collection and information exchange solutions for asset owners, allocators and fund managers, has released its latest white paper entitled “2021 Manager Survey: How RFPs and DDQs Get Done.”
The paper presents the results of its recent survey of over 170 private equity, hedge and long-only managers fund managers exploring how marketing, investor relations and compliance professionals are optimising their staffing, processes and technologies to meet the due diligence needs of the allocator community.
The primary areas of focus for the survey are centred around Investor Requests and Team Sizes, Consultant vs Third-Party Database Engagement, Industry Standard and Custom Questionnaires and dedicated RFP/DDQ Technology. Points of interest from the survey include:
• On average, 32 per cent of allocators will accept a pre-filled, industry standard DDQ
• Nearly 60 per cent of allocators send a custom DDQ to managers for them to fill out
• 12 per cent of managers with AUM between USD1 billion to USD10 billion receive between 100-500 RFPs/DDQs requests a year. That number jumps significantly, though, to 40 per cent for managers in the USD10 billion to USD50 billion AUM range.
• 40 per cent of managers with AUM between USD10 billion-USD50 billion use a dedicated RFP/DDQ technology to respond to investor requests. 64 per cent of managers with AUM between USD50 billion-USD100 billion and 71 per cent with AUM over USD100 billion do the same.
Monel Amin, Founder and CEO of DiligenceVault, says: “As both allocators and fund managers continue to look for efficiencies across their organisations, the manager research and due diligence process is also benefiting from advancements in technology. With the increasing deluge of information requests from the investor community, fund managers have begun to recognise that better tools are needed to optimise their communication with investors to win new business. DiligenceVault has developed an industry-leading set of solutions for fund managers to help them better organise their content, track information requests, collaborate across the organisation, and respond to investors quicker and easier.”