As the traditional and the alternative investment spaces are increasingly converging to meet investor demand, asset managers are finding that the nature of illiquid alternative assets is ill-suited to traditional fund management processes and systems. Key challenges include:
- Functional and governance considerations
- Data and valuations
- Organization and people
To succeed in the alternatives segment, asset managers must maintain an operating model that can function seamlessly within these relatively illiquid markets. We can advise fund management firms as they weigh the benefits of adopting new systems, tools and processes, as well as help assess prospective alternative opportunities prior to committing investment capital.
EY’s leading-practice target operating model framework, which we introduced in this article, allows complex business scenarios to be decomposed into distinct views of the organization, which supports a structured and consistent analysis and design that EY uses to deliver the target operating model.