Software vendors are not convincing many private equity firms that their fund administration tools are worth it, research suggests.
Although outsourcing is a rising trend in private equity operations, a total of 46% of firms in a survey still relied on Excel for their portfolio monitoring.
Also, 44% of those that did not use third-party software said they saw no immediate need to.
Chris Ferguson, chief executive of Preqin Solutions, the firm that commissioned the survey, said: “Software providers will have to work hard to convince these managers of the benefits of their platforms if we are to see the industry shift further from Excel.”
Preqin global survey of 188 firms did show that a quarter of firms use a third-party portfolio monitoring platform, while 14% use a custom in-house system.
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