Data Management Challenges in Private Equity

Allvue Systems’ 2025 GP Outlook Survey reveals persistent data management struggles among private equity firms, with 58% of general partners (GPs) ranking data collection and reporting as their top organizational priority. While the survey sampled 100 GPs, its findings align with broader industry trends: 63% of firms rely on fully manual data processes, and 70% cite LP reporting demands as their biggest operational hurdle. These challenges stem from multiple root causes, including fragmented systems, escalating data volumes, and evolving compliance requirements.

A key issue is the reliance on outdated methods. Over 75% of firms in a related study struggle with siloed data trapped in spreadsheets, emails, and legacy systems, which leads to inefficiencies and errors. Yuriy Shterk, Allvue’s Chief Product Officer, notes that manual processes make it “significantly tedious and time-consuming” to meet reporting needs, particularly as investors demand diversification. Regulatory pressures compound these difficulties, with 27% of GPs citing compliance as a barrier to AI adoption despite its potential to automate workflows.

The survey’s sample size, while small, reflects industry-wide patterns. For example, Deloitte reports that 53% of private capital firms identify data management as a top-three challenge, driven by underinvestment in analytics infrastructure and governance. Similarly, 50% of firms in a State Street study admit that manual processes waste resources, suggesting systemic issues rather than outlier experiences.

Companies are addressing these gaps through technology partnerships and automation. Allvue’s Credit Research Solutions, launched in 2025, centralize data across platforms to eliminate manual entry and improve accuracy. API integrations are also gaining traction, enabling seamless data transfers between systems. However, adoption barriers persist: 19% of GPs lack skilled personnel to implement these tools, and 26% report poor data quality undermining AI initiatives.

Future improvements hinge on AI-driven analytics and unified platforms. While 82% of GPs now use AI, most apply it minimally due to technical and regulatory hurdles. Deloitte emphasizes that “modern data, analytics, and AI capabilities” are critical to unlocking value across the investment lifecycle, from due diligence to portfolio monitoring.

The industry is poised for transformation. Priorities include enhancing data governance, investing in training, and adopting cloud-based systems. As Ivan Latanision of Allvue states, overcoming these challenges is “critical to maintaining a competitive edge” as reporting demands and market complexity intensify.

Data management struggles in private equity reflect structural industry shifts rather than isolated cases. Addressing them requires prioritizing automation, fostering tech partnerships, and building robust data frameworks—steps that will define winners in an increasingly data-driven market.