Private markets ecosystem blueprint & operating model design
Private markets limited partner integration into the whole of fund
This Australian based industry super fund (A$70B) had been running its Private Markets business independently for a number of years. As both an Allocator and Manager of Directs, it became apparent that the existing operational state was not sufficient to support the refreshed strategic direction.
THE CHALLENGE
Inefficiencies relating to sourcing and management of data, sub-standard technology, in-house middle office services and the organisational structure as a whole hindered not only the future growth of Private Markets, but also the achievement of the Fund’s overarching objectives.
THE PROJECT
1886 were engaged to work with key stakeholders to define a target blueprint that would introduce efficiencies by consolidating the individual asset class pillars within Private Markets, as well as recommendations to increase integration with the broader Investments business.
The outcome included a defined approach to management and integration of private markets data, provision of middle office services and updated technology to automate and supplement many tasks.
1886 APPROACH
1886 was able to apply our operating model experience and knowledge of the private markets, including the technology and services landscape to successfully define a target state aligned to client objectives. This involved:
STAKEHOLDER & EXECUTIVE INTERVIEWS TO UNDERSTAND STRATEGIC INTENT
REVIEW OF EXISTING OPERATIONAL STATE TO BETTER ASSESS ALIGNMENT OPPORTUNITIES
PRESENTATION OF DATA, TECHNOLOGY AND VENDOR SERVICE OPTIONS OUTLINING PROS AND CONS FOR EACH
ENGAGEMENT WITH LEADERSHIP TO DEFINE A DESIRED ORGANISATIONAL STATE
CREATION OF A DEFINED AND AGREED TARGET STATE BLUEPRINT, INCLUDING IDENTIFICATION OF GAPS, HIGHLIGHT OF PRIORITY FOCUS AREAS AND OVERALL PLAN FOR REORGANISATION
OUTCOMES
A defined and agreed target state blueprint that sought to enhance integration both within Private Markets and into the Whole of Fund, opening up opportunities for more relevant and valuable conversations for investment decisions.
In addition, a planned uplift in the operational state across data, technology and services with efficiencies to support the strategic direction of the Fund. and ultimately improve outcomes for its members.
