This article explores:

  • Alternative Asset fund operations in 2024

  • The path to hyperautomation

Imagine walking into a bank…

Where every interaction feels tailored just for you, transactions happen in the blink of an eye, and security feels like an invisible shield around you and your assets—this might sound like science fiction, but it’s the reality we’re stepping into today. Automation is the powerhouse driving these changes, not only in retail banking but also in revolutionizing the alternative asset market with unprecedented speed, accuracy, and personalization.

1500% increase in usage of gen ai by 2026
The alternative asset industry is moving from simple automation to hyperautomation

The Starting Point: Simple Automation

Simple automation represents the initial phase of technology adoption in the alternative asset market. At this stage, organizations leverage basic tools to automate routine tasks, reduce manual efforts, and improve operational efficiency. At this stage, automation is typically confined to specific, well-defined processes and tasks, offering incremental improvements in efficiency.

Two primary components of simple automation are:

  • Task Automation: This involves the use of rules-based systems and Robotic Process Automation (RPA) to perform repetitive tasks. For example, RPA can automate data entry, reporting, and compliance checks, freeing up human resources for more complex tasks.

ACE Alternatives is launching embedded simple automation allowing GPs to view granular data of the LP onboarding processes to updates on regular fund lifecycle events such as capital calls and bi-weekly accounting cycles. Building trust and transparency with GPs is paramount to a fund administrator, and automation is key to doing so.

  • Process Automation: Workflow automation and intelligent Business Process Management Systems (iBPMS) take automation a step further by orchestrating the flow of work across different processes. This ensures that tasks are completed in a sequence, with minimal human intervention.

ACE Alternatives is launching embedded simple automation allowing GPs to view granular data of the LP onboarding processes to updates on regular fund lifecycle events such as capital calls and bi-weekly accounting cycles. Building trust and transparency with GPs is paramount to a fund administrator, and automation is key to doing so.

Transitioning: Event Processing and Conversational UX

As organizations seek to enhance their automation capabilities, they begin integrating more advanced technologies that enable greater flexibility and responsiveness.

  • Event Processing: Through the use of Application Programming Interfaces (APIs) and adaptive architectures, companies can process and respond to events in real-time. This is particularly useful in the alternative asset market, where timely decisions can significantly impact returns. For instance, APIs can facilitate seamless data exchange between systems, allowing for faster analysis and action.

ACE has successfully integrated Monite ’s advanced accounts payables/receivables automation and payment processing into its platform, providing fund managers with enhanced data extraction for any transaction documentation, real-time processing, and streamlined auditing and liquidity planning. This integration now enables advanced validation, one-click payment options for lifecycle events such as Capital Calls, and real-time settlement tracking, significantly streamlining fund operations.

  • Conversational UX: The introduction of chatbots and virtual assistants marks another leap forward in automation. These tools enable more natural interactions between users and systems, providing instant responses to queries and guiding users through complex processes. In the context of alternative assets, this could mean quicker access to market insights, portfolio updates, and investment opportunities.

This saves time while enhancing customer satisfaction by providing 24/7 support. Imagine an LP from California begins onboarding at 4 PM, while the rest of the team is tucked in their beds in Berlin but is still able to receive real-time assistance without waiting for business hours. That’s the kind of service automation is making possible, enhancing customer satisfaction and loyalty.

This stage represents a shift from rigid, predefined processes to more dynamic and responsive systems capable of handling a broader range of scenarios.

The Pinnacle: Hyperautomation

Hyperautomation is the culmination of the automation journey, characterized by the integration of advanced technologies that drive unprecedented levels of efficiency and intelligence.

  • Business Operations: Digital Operations (DigitalOps) play a critical role in hyperautomation by enabling the end-to-end digitalization of business processes. This involves the use of data-driven decision-making, predictive analytics, and advanced workflow automation to optimize operations continuously.

Automating fund lifecycle communication ensures instant data sharing with tax and accounting teams. For example, a capital call automatically triggers real-time accounting updates, immediate tax calculations, and seamless record adjustments, streamlining the entire process. We at ACE are consistently re-imagining the landscape and challenges its status-quo.

  • Intelligence: The most significant leap towards hyperautomation is the incorporation of artificial intelligence (AI) and machine learning (ML). Large Language Models (LLMs), machine learning algorithms, and advanced analytics empower organizations to analyze vast amounts of data, identify patterns, and make informed decisions at scale. For alternative asset managers, this could mean more accurate risk assessments, optimized portfolio allocations, and the ability to predict market trends with greater precision.

ACE’s partnership with Tactyc is set to revolutionize fundraising, deployment, and reporting for alternative asset fund managers throughout the fund lifecycle by integrating advanced intelligence automation tools that reduce spreadsheet dependency and bring transformative solutions for fundraising, portfolio construction, and reporting. Enhanced forecasting and scenario planning tools further optimize fund strategy, enabling precise, data-driven decision-making.

This is only the beginning.

Automation in the alternative asset industry is still in its early stages, yet its potential is vast and largely untapped. The diagram highlights key themes and business segments, including fund administration, accounting, tax, ESG, and payments, where automation is already beginning to make an impact.

But this is just the beginning.

As the industry continues to evolve, automation will expand into more areas such as sustainability, data modeling, and compliance, driving further innovation. The integration of emerging technologies like AI, advanced data analytics, and exponential technologies will unlock new efficiencies, transparency, and accountability across the entire alternative asset ecosystem.

The future promises even greater transformation as automation takes on more complex tasks and strategic roles, reshaping the landscape of alternative asset management.

This article is part of a series exploring the intersection of technology and alternative assets. Stay tuned for more insights and developments in the field.

About ACE Alternatives

ACE Alternatives, a leader in managed services for the Alternative Assets sector, specializes in venture capital, private equity, fund of funds, private real estate, and more. Leveraging tech-driven processes and extensive industry experience, ACE offers tailored solutions for fund administration, compliance and regulatory, tax and accounting, investor onboarding and ESG needs.

Our vision is to redefine fund management standards with data-driven processes, combining advanced technology with deep industry knowledge. We are committed to demystifying complex fund operations, promoting transparency, and achieving sustained growth across the fund lifecycle.

Media Contact

Rhea Colaso

VP of Experience, ACE Alternative