In the article published in Asian Venture Capital Journal, our CEO Wissem Souissi had the opportunity to express his stand on the necessity to implement technology into the operational due diligence process.
The article entitled ”Operational due diligence: Query parameters,” looks into how institutional investors are changing the way they conduct due diligence into the back-office processes of fund managers, and discusses the implications of the trend toward stricter ODD in the fund management industry.
The article reveals opinions on the topic of more outstanding industry participants, and Wissem was asked to comment on the technology effect on ODD procedures.
Here is the excerpt from the article:
Wissem Souissi, founder and CEO of fund manager due diligence technology provider Diligend, estimates, however, that more than 90% of LPs in private markets continue to use “archaic” processes for data exchange and ODD. This includes the manual sharing of PDF files and Word documents via email and data warehouses, the latter of which requires sorting through hundreds of variously formatted pieces of information.
“The big GPs would love to continue to dictate to the small to medium-sized LPs the way they share data,” says Souissi. “The easiest way for GPs is just generating PDF files and putting them in a virtual data room and that’s it. But if GPs would like to get the money quicker, maybe they should help the LPs make the decision quicker with the new tools that they would like to use. It’s in the interest of all parties to look for ways to change this practice.”
The full article is available on the link: https://www.avcj.com/avcj/analysis/3016687/operational-due-diligence-query-parameters