3 questions with Ktalysis Private Markets

Hugues Chabanis: Operational noise, global regulations, and data complexity create decision-making challenges for the buy side. A single source of truth across asset classes can help firms transform operations, pivot with agility, and achieve sound investment decisions. 

A technology partner who can deliver a total portfolio view, with organized, real-time cross-asset data throughout the entire investment lifecycle will secure speed and maintain accuracy.  

Yann Peron: I agree. Following the growth of private markets, it is important to aim for an inclusive portfolio, rather than an isolated strategy. Investment firms’ focus has shifted as they seek to make private markets operations more transparent, agile, and optimized. We advise clients to focus on three key factors:  

• Build a strong understanding of alternatives investments and private markets 
• Assess proven technology solutions to deliver highly efficient firm-wide operations  
• Combine private markets with the current strategy – establishing a data foundation that can deliver one holistic view across all investments and analytics

Hugues Chabanis: We give choices around operational change. Our investment in innovation means we can offer standardized integration and a range of managed services. This, combined with a robust partner ecosystem and regulatory monitoring services, helps our clients anticipate and achieve best outcomes. 

When a firm decides to move to a modern platform architecture, they must identify unnecessary operational workflows. Here, they can benefit from a partner like Ktalysis, who can provide domain expertise alongside their chosen vendor. 

Yann Peron: That's right, recognizing that every project has different levels of complexity is vital to its success. The expertise of the Ktalysis team, including our risk assessment, supports clients as they plan and experiment. 

We encourage firms to embrace innovation to keep up with their growth ambitions. We offer deep knowledge of how new technologies like AI can be applied to simplify and scale investment workflow use cases. 

As it matures, AI and machine learning will offer high efficiency gains, which can't be ignored. We advise experimenting small and scaling up. Firms should embrace quick wins via an open platform that enables integrated access to new technologies but is supported by one holistic view. This offers the best way to innovate and lower risk.

Hugues Chabanis: Our recently commissioned InvestOps report shows that 80 percent of 200 global buy-side operations leaders surveyed intend to increase their ESG allocations this year. This presents opportunities as well as operational challenges when it comes to integrating sustainability factors into the decision-making process. 

We don't believe in a fragmented approach to ESG, private markets, or the adoption of new technologies – all three strategies should be captured and met in one platform. SimCorp One enables a front-to-back ESG approach, including workflows such as compliance, performance, and attribution. Clients access real-time, end-to-end 'ESG Book of Record', while also handling a variety of instrument types across public and private markets. We flag point-in-time ESG underperformance, enable compliance controls and deliver jurisdictional multi-currency reporting. In my eyes, the three go hand in hand. 

Yann Peron: ESG is still, in many ways, under construction. While there is a marked improvement in finding a path to legislative standardization, there is also a big opportunity for technology to address shortcomings. 

We see real momentum to structure the data foundation and governance so that future advanced analytics can be built. As Hugues states, platforms like SimCorp One can achieve scale and efficiency across the investment chain. It manages the speed and ease of data collection during and after integration. The goal is for alternative and traditional asset workflows to exist together, as one complete and transparent ESG foundational view.