Private Capital Markets investments: The power of digitisation and streamlined processes

Private Capital Markets investments: The power of digitisation and streamlined processes

21st August 2023

Investment banks have always played a vital role in the financial industry, providing a range of services to clients. However, with companies opting to stay private for longer periods, investment banks recognise the increasing importance of private capital markets (PCM). By advising and partnering with issuers throughout their fundraising journey, investment banks have the opportunity to establish themselves as trusted advisors.

So, what role can digitisation play in scaling up these services efficiently?

The rise of private capital markets

In recent years, we have witnessed a shift in companies choosing to remain private for extended periods of time. This trend has created a significant opportunity for investment banks to become key partners in the PCM space. By offering advisory services and capital raising solutions, investment banks can assist issuers as they evolve through their fundraising journey. The prolonged stay in the private market allows investment banks to develop long-term relationships and provide tailored support to their clients.

The importance of digitisation

To effectively navigate the PCM landscape and deliver efficient services, investment banks must embrace digitisation. Streamlining the fundraising process through digital solutions enables bankers to access real-time analytics, facilitating the matching of potential investors with suitable deals. By leveraging digitisation, investment banks can enhance their value proposition to issuers by freeing up bankers’ time to focus on relationship building and value-added tasks. Moreover, digitisation empowers banks to capitalise on the best opportunities, replacing transactional data rooms with relationship-enhancing analytics.

Harnessing analytics and effective bookbuilding

Analytics and effective bookbuilding are vital for matching investors with the right deals, minimising drop-off rates, and optimising bankers’ time. Platforms like Delio Core provide comprehensive analytics that enable bankers to track investor engagement with different deals. This empowers them to construct a precise picture of their investor base and build their book strategically. With better data at their disposal, investment banks can tailor their outreach based on prior engagement and progressive profiling, ultimately driving efficiencies and reducing drop-off rates.

Moving towards a centralised, holistic approach

To overcome the limitations of fragmented workflows involving legacy Virtual Data Rooms (VDRs), spreadsheets, and repurposed CRM tools, investment banks need to transition to a unified platform. The Delio platform offers a comprehensive solution that combines deal information, investor data, and analytics in a single digital hub. By centralising data and automating processes, investment banks can streamline their operations and eliminate the information gaps that arise from disparate systems. Audit trails provided by the platform ensure transparency and facilitate the tracking of investor engagement and compliance.

Navigating regulatory challenges with Delio Core

Investment banking operations are typically associated with regulatory complexities, the need to respect Chinese walls, and the management of conflicts. Delio Core addresses these challenges by integrating compliance processes into the platform pre-launch. By setting up pre-defined eligibility criteria, investment banks can control deal visibility and ensure that only authorised groups and individuals have access to relevant information. Embedded audit trails provide peace of mind by tracking compliance processes and approvals, allowing banks to demonstrate adherence to regulations.

How can investment banks capitalise on this opportunity?

As companies increasingly choose to stay private for longer periods, investment banks have a unique opportunity to establish themselves as trusted advisors in the private capital markets. 

By leveraging digitisation and embracing platforms like Delio Core, investment banks can streamline their processes, enhance their value proposition to issuers, and capitalise on the growing PCM opportunities. 

With efficient workflows, robust analytics, and a unified platform, they can navigate regulatory challenges, build stronger relationships with clients, and achieve long-term success in the private capital market landscape.

Find out how Delio can help your investment bank by booking a demo with one of our experts.

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