Why is the AltExchange Alliance of interest to LP investors?
Most limited partner investors – including pension funds, family offices, sovereign wealth funds, endowments, insurance companies, and so on – typically invest in a portfolio of private equity and alternative investment funds. The number of partnerships maintained by an LP can easily number 10, and can often exceed 50.
For LPs with a portfolio of funds, obtaining data across multiple sources, in a format that is easy to aggregate and analyze, poses a considerable challenge. Significant effort is invested in accomplishing this task – on an all-too-frequent basis (quarterly, at the least). By using a validated standard, AltExchange ensures that the data passing through the AltExchange Validation Platform is consistent across all sources using the format. This will significantly reduce the effort required to manually perform the validation step of the process while accelerating the ability to assemble the data for portfolio-wide analysis and reporting.
As an AltExchange member, a limited partner can focus on investment performance and insights driven by astute analysis rather than on gathering and manipulating data.
As an AltExchange member, an LP commits to requesting that their fund managers and general partners provide information using the AltExchange format and to establish processes for enforcing the use of the standards whenever reasonably possible.