Faster fund closing with one and done investor onboarding
Achieving an efficient and timely fund closing is beneficial for fund managers and investors. Capital raised can be deployed more quickly, the costs associated with fundraising are reduced and investors benefit from a smooth experience – so are more likely to reinvest in future funds. Unfortunately, the traditional onboarding process often slows things down and puts a dampener on investor relations. Common culprits include, making multiple requests for the same information from investors, unwieldy subscription booklets and investor queries around what’s being asked of them and why. We share five ways our one-and-done approach to investor onboarding helps to facilitate faster and frustration-free fund closings.
1. Approve investors once
To invest into the private markets, investors need to prove they’re eligible to invest, who they say they are and confirm their tax status. We streamline this traditionally disjointed and repetitive process by authenticating investors once across all their investments. This reduces the time associated with investor onboarding significantly for fund managers and makes it less onerous for investors – particularly for repeat investments.
2. All in one central hub
With Subscription, KYC and Tax all interconnected in one hub, we’re removing silos that so often delay the process through enabling information to be shared and reused rather than having to request and validate it each time. For example, if an investor is already approved for KYC they can use the information to pre-populate their next subscription questionnaire, or tax information that’s collected during subscription can then be used up the line for reporting. We already hold the profiles of more than 40,000 private markets investors. Fund managers tend to find at least 50% of their investors are already pre-approved on our hub, which saves a lot of time when it comes to onboarding.
3. Access to experts
Private markets investments involve more regulatory scrutiny than traditional asset classes. This can be challenging for investors, especially those who are new to the private markets. Access to an expert team for guidance around legal or compliance requirements helps keep the process on track. Our team is on hand around the clock to provide investors with support, so queries and errors needn’t hold up the process.
4. A dedicated fund closing team
With fund managers raising larger funds from a wider pool of investors an experienced team to manage the process makes a big difference – which is where we come in. We take responsibility for co-ordinating all the elements of the workflow. We’re able to handle large volumes of data quickly, which can be beneficial for fund managers and their service providers. All investor information is approved within 24 hours of receipt, whilst errors and queries are resolved quickly and efficiently, ensuring there are no bottlenecks. The process is never ‘waiting on IDR’.
5. Communication throughout the process
Clear and timely communication around what’s required, from whom and when is crucial to bringing in a fund closing on deadline. We bring all parties involved in the process together in one platform. We’re able to automate reminders to investors, set the cadence and flag what’s still outstanding, what’s ready to sign off and what’s finalised. Our live dashboard provides a bird’s eye view of progress, enabling us to identify and get ahead of any aspects of the workstream that may be behind in order to avoid last minute delays
Don’t let investor onboarding hold up your next close. Come join 300 fund managers already enjoying a faster fund closing process with IDR.
