Discussing the benefits of digitally native private markets deal structuring
In the dynamic landscape of private markets distribution, embracing digital solutions isn’t just a trend – it’s a necessity. At Delio, we specialise in delivering digitally native investment vehicles tailored to our clients’ unique requirements. Collaborating closely with a wide range of financial firms globally, we craft bespoke vehicles and seamlessly deliver them through an embedded digital process via our platform, Delio Core.
There are many advantages of digitally native deal structuring for our clients, especially distributors, with cost-saving leading the charge.
Cost savings
With years of expertise working with investment vehicles, Delio has developed robust frameworks, along with the operational systems and digital delivery which underpin them. This means clients eliminate the guesswork when launching an opportunity, and help reduce the overhead for in-house compliance teams. This not only creates cost efficiencies but also paves a smoother route to market entry.
Delivering a digital solution also means saving time and effort, thereby reducing the need for extensive in-house costs to administer operations. Delio Core effectively manages resource-intensive administrative tasks and ongoing transaction management. Through automation, these processes free up resources and streamline operations. Additionally, the self-serve nature of the platform not only cuts down on management overhead but also guarantees uniform distribution practices.
Standardised processes
Standardisation is key in simplifying the experience for both distributors and investors. An investment vehicle framework provides uniformity across all deals, and when delivered digitally it provides a seamless and intuitive user interface.
With the digital framework set up by a structuring and technology partner like Delio, an investor will have the same experience and process whenever they reinvest with the distributor. Whereas distributors who work on a case-by-case basis often have sporadic processes, which can be confusing and time-consuming for all involved.
Delio’s framework is built out through our technology, so all deals follow the same process, on the same user-friendly interface, yet this can be configured for an individual firm’s nuances. Ultimately this provides a tailored, cleaner and more intuitive journey for all types of private market products. This homogenous environment not only enhances the investor experience but also instils confidence in the process.
Faster time to market
Digitising the structuring process significantly cuts down on time to market. As previously highlighted, Delio’s existing frameworks and technology can expedite setup. In addition, digitalisation streamlines the process, enhancing its efficiency and speed. Ultimately, the pace of the investment lifecycle from going to market with an opportunity, fundraising, closure, and capital deployment to underlying companies accelerates and fosters satisfaction among all stakeholders involved.
Democratisation of alternative assets
Investment vehicles allow for a more inclusive syndication model as they can be built to democratise access and aggregate investors. Combining them with a digital marketplace-like solution goes one step further in enhancing access. By bypassing traditional barriers to entry, such as stringent access minimums, a broader range of clients and investors can participate, unlocking and broadening distribution channels.
Enhanced liquidity
Enhanced liquidity is another significant benefit of digital deal structuring. With streamlined processes for onboarding, compliance, and transaction management, fundraising becomes more agile and less operationally risky. Integrated digital reporting tools provide ready access to data, facilitating secondary redemptions far more easily and therefore improving overall liquidity.
In essence, embracing digitally native deal structuring not only drives cost efficiencies but also fosters standardisation, speed, inclusivity, and liquidity in the distribution landscape. As the market continues to evolve, leveraging digital solutions will be imperative for staying ahead of the curve and unlocking greater value for all stakeholders.
Discover how Delio could help you with a digitally native investment vehicle by booking a free consultation.
