Investing in alternative investments can be a long process. Investors typically spend a great deal of time sourcing deal flow, conducting extensive research and due diligence, and tracking and monitoring their investments. Fortunately, there are many online tools that can help streamline this process. With fintech on the rise, we identified 8 online tools that may be resourceful to investors such as accredited investors, family offices, wealth managers, to institutional investors.
DarcMatter – Investors typically source their investment opportunities from their professional networks and placement agents. A new tool that is surfacing amongst investors is the use of online investment platforms, such as DarcMatter. Using technology to source deals, online investment platforms give investors the chance to access investment opportunities that 1) lie outside their personal networks, 2) bypass geographical restrictions, and 3) can be accessed at a fraction of the price they would incur by going to large wirehouse firms. DarcMatter is free for both accredited and institutional investors to use, and investors interested in illiquid alternative asset classes such as venture capital, hedge funds, and private equity will find this tool most helpful.
Research / Due Diligence Tools
Preqin – Investors in private equity, hedge funds, venture capital, real estate and private debt will find Preqin’s extensive online database helpful when it comes to industry and market research. Some of their clients include fund managers and institutional investors who are looking to get a comprehensive overview of the industry. One of the larger leading databases in hedge funds and private equity, Preqin’s write-ups and reports on fundraising and investments (by sector and geography) are helpful. And in case you’re wondering how they collect their data, Preqin monitors regulatory filings and leverages direct contacts and relationships with industry professionals from around the world.
CB Insights – An obsession with data can be a good thing. Founded in 2010, CB Insights has become one of the top go-to sources for venture capital investors. CB Insights’ forte lies in its extensive and up-to-date data and research on emerging industries, venture capital, and startup companies. With proprietary access to angel deals afforded by partnerships with Silicon Valley Bank and the Angel Capital Association, CB Insights is widely used not only by venture capitalists who want a pulse on the markets and startups, but also by growth equity investors, investment banks, wealth managers, law firms, consultants, and even universities and economic development organizations.
Hedge Fund Research – Are you a hedge fund investor looking for performance reports and indices? Hedge Fund Research (HFR) may be what you’re looking for. With over 7,500 funds included in the HFR Database, Hedge Fund Research’s database is updated three times a month, with access strictly restricted to accredited investors only.
PitchBook – Focused only on venture capital and private equity deals, PE and VC firms use PitchBook as a tool when conducting due diligence or research. Their data includes LP commitments, cash flows, follow-on financings, exits, benchmarks, and IRR returns data.
Streak – Calling themselves the “CRM in your inbox”, Streak’s unique CRM solution is based on the premise that it is possible to simplify your workflow by integrating your external CRM solution with your Gmail inbox. That’s right, you may never have to leave Gmail and still get your work done more efficiently and quickly. On top of its flexible CRM and process management system that lives inside your Gmail inbox, Streak also provides analytics and enables you to collaborate with your team seamlessly.
Backstop Solutions Group – This software specifically hones in as a software provider to hedge funds, funds of funds, pensions, endowments, private equity firms, consultants and family offices. As a SaaS platform, this is one of the few platforms we came across that is specifically tailored towards the alternative investment management industry. Family offices and institutional investors use Backstop Solutions to streamline the research process and manage due diligence, share key documents, track and monitor their investments, manage their capital commitments and asset allocation, and more.
Dynamo – A CRM software and online reporting system, this is another platform specifically focused on working with alternative investment firms, family offices, and institutional investors. Investors can use Dynamo to build their client relations, track investment research, conduct due diligence, manage their portfolio across all asset classes, analyze investment performance, and generate reporting. It was also recently named as the Best Hedge Fund CRM Software – USA in the 2015 Acquisition International Hedge Fund Awards.
While this list is not exhaustive, technology is certainly helping investors become more efficient at every step of the investing process. If there are some other great tools that are not mentioned on this list, please feel free to share in the comments below.
DarcMatter is a technology platform providing enhanced capital connectivity between issuers and investors in the alternative investment space. Visit DarcMatter.com to start raising capital or get transparent access to alternative investment opportunities.Visit DarcMatter