Asia Private Capital CFOs: Navigating Due Diligence & Fundraising Trends

James Donnan, Managing Director APAC at Intertrust Group, recently spoke to AVCJ about the growing trend towards more comprehensive investor due diligence, fundraising in an increasingly virtual post-pandemic world, and the CFO’s evolving role navigating this complexity.

Our recent research among global private capital CFOs shed light into this rising trend, revealing that some 80% CFOs in China expect their investors (or LPs) to demand access to portfolio performance updates on a live or daily basis over the next decade.

James told AVCJ:

With border restrictions making fundraising roadshows and on-site due diligence harder, GPs are looking for any edge to secure capital commitments, and this means going above and beyond to meet documentation requests from potential LPs. As such, the CFO’s time is increasingly being spent on such essential activities, while more routine administrative tasks are being outsourced or automated.

James highlighted that as more foreign LPs look to increase allocations to Asia-based managers, competition is rising. CFOs and COOs in the region are spending more of their time supporting fundraising activities and must understand that showcasing a solid track record will not always be enough.

James added:

CFOs and COOs need to extend their capabilities beyond simply demonstrating strong financial returns. They need to develop stronger systems, controls and governance around areas such as ESG, cybersecurity, reputational risks, and diversity and inclusion. This is where investors are increasingly focusing their attention, and GPs need strong CFO and COO support in order to respond to the evolving needs of the investor.

The findings of our research can be found in our report, ‘The future private capital CFO: Evolving in a digital age’, focusing on the investment private capital funds will need to make to meet rising LP demands.

You can read the full article here.