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07 May 2024

Operational Alpha: Capitalizing on Market Opportunities

Trends in Credit & Private Markets

As opportunities in private markets continue to be attractive, firms require more than investing acumen to fully capitalize on the benefits of this rapidly growing asset class.  With the right technology and workflows, firms can seize this opportunity with the confidence needed to achieve operational alpha.  

Given strong fundamentals, such as increased capital allocation, borrowers and investors view private markets as an attractive asset class. However, while private markets, including syndicated and private loans, have the potential for high and stable returns, they entail processing and accounting complexity.

Three Pillars to Achieve Operational Alpha

In a recent webinar, Operational Alpha: Capitalizing on Market Opportunities, SS&C Advent Geneva® practitioners explored the growth in this space and how firms can leverage three distinct pillars to achieve operational alpha. For firms diversifying their asset class allocation into credit, debt, or long-short equity, these pillars should be at the forefront of their investment strategy.

  • People: The importance of partnerships with managed services helps your firm achieve operational alpha without a heavy burden on your team
  • Data: Having a strong operational infrastructure to account for increasingly complex fund structures and investment strategies
  • Technology: The right technology reduces the operational hurdles of processing and administering syndicated and private loans

People, Data, and Technology are the core tenets of operational alpha; firms must empower their operations team with training, technology, and data to operate effectively. Equally investing in these areas ensures optimal performance in the middle and back-office. Neglecting any one area leads to increased burden and decreased efficiency.

Moreover, each pillar is tightly correlated; as issues arise within one, another is often impacted. As firms build their operations teams, it’s important to think about the process holistically and provide each pillar with the tools to achieve operational alpha.

Processing Loan Data the Smart Way  

The webinar also explored the various solutions coming to market to solve multiple operational pain points in the credit space. For example, SS&C Loan Data provides a loan market data solution for digitizing agent notices and transferring the data directly into downstream systems, such as data warehouses or accounting solutions. This solution alleviates manual processes and archaic workflows firms face in processing loan market data, reducing operational risk and optimizing workflows. Watch the full Operational Alpha: Capitalizing on Market Opportunities webinar to hear more from our team on loan data processing and being prepared for this expanding opportunity.

As you explore investing in this asset class, we invite you to learn how Geneva and SS&C Loan Data can support your investment strategies by contacting us or requesting a demo.