Proven Best

Practices
for Investor
Onboarding
How private equity fund managers can
build a strong foundation for success
 CONTENTS

Introduction
01 Embrace the New...............................3 In the fast-paced world of alternative investments, competition is
fierce. While securing an investor's capital commitment is a significant
milestone in the limited partner-general partner (LP-GP) relationship,
the journey doesn't end there. Investor onboarding is a crucial step in a
02 Build and Nurture Relationships........4
fundraising cycle, and it should never be taken for granted.

In today’s digital age where people have become accustomed to

03 Simplify Processes............................5 seamless online processes, private equity fund managers cannot
afford to treat investor onboarding as a perfunctory exercise.

The effort of securing an investor’s commitment can be undermined

04 Treat Nothing as an Afterthought......6
by a poor onboarding experience. However, by making the onboarding
experience effortless for the investor, a firm can make a lasting
impression that will inspire confidence and pave the way for a
05 Ensure Transparency.........................7 long-term relationship.

How can a fund manager successfully master investor onboarding?

What follows are five key areas fund managers should focus on.
06 Elevate Your Toolkit...........................8

2
 Embrace the New:
01
01
Don’t Get Stuck in Old
Ways of Thinking
02
To be competitive, fund managers need to keep an open mind and
be flexible about change. This is key to attracting investors who are
being courted by an increasing number of players in the alternative
03 investment space. Firms that are tech-savvy and forward-thinking
will stand out from the competition.

It’s crucial not to let the comfort and familiarity of traditional

04
practices lull you into complacency.

Don’t be afraid to reexamine

05
how you do things and break
free of routines.

06

3
 Build and Nurture
01
Relationships 50%
It’s widely known that making connections is paramount to securing investment

02
02
capital. However, with the emphasis placed on seeking, attracting and onboarding
investors, fostering relationships can be overlooked in the process.
Number of respondents
In the 2023 SS&C Intralinks LP Survey produced in association with Private
who cited that more
03 Equity Wire, LPs revealed that the one thing that would probably improve their frequent conversations
relationships with GPs was to hold more frequent conversations with portfolio with portfolio managers
managers and be provided with better report analytics. Those GPs that embrace and better report analytics
technology through bespoke in-house systems or outsourced services will be in a would help improve
04
better position to navigate the market landscape over the next 12 months. their relationships with
fund managers.
Soft skills, such as relationship-building, are vital to retaining investors,

05 especially when unexpected complications arise during processes like

onboarding to a new fund.

It’s important to remember the value of cultivating relationships with prospective

06
investors. Just because they don’t invest with you now doesn’t mean they won’t
consider it later.

4
 Simplify Processes
01
and Enhance Accuracy
Presenting an institutionalized, organized and professional image is essential.
This is where technology begins to emerge as a major consideration for
02
investors. It’s key to assess your current processes to evaluate how digital
and automated functions can serve your firm and its clients.

03
03 To make the investor onboarding process frictionless while reducing errors:

• Simplify document complexity by automating business logic to

guide the investor only to those areas that require completion based
04
on collected responses.

• Ensure complete and accurate data at the time of submission,

05 eliminating issues with handwriting legibility and reducing the
need for back-and-forth communication via emails or phone calls
with investors.

06
Providing a fast and seamless investor onboarding experience is your
biggest opportunity to secure investors’ confidence and respect.
Leveraging a digital onboarding platform is an effective way to start
your relationship off on the right foot.

5
 Treat Nothing as A digital onboarding
solution can provide
01
an Afterthought all the necessary
tools to successfully
Investors are asked to provide documentation during the onboarding
deliver the required
process. Two often overlooked areas are Anti-Money Laundering (AML) rules
02
and signature collection. documentation and
signatures.
With AML, investors often fail to provide all the required supporting
03 information in their initial submissions, resulting in additional time spent
on collection after other sections have been filled out. To streamline the
process, AML requirements should be integrated into the subscription
document, enabling the simultaneous collection of all necessary data upon
04
04
submission and eliminating the need for follow-up data collection.

Obtaining original handwritten signatures, particularly from entities with

05 multiple authorized signatories, has traditionally slowed the onboarding
process. An effective solution is to incorporate electronic signatures,
reducing the need for physical signatures.

06
In both instances, a digital onboarding solution can provide all the necessary
tools to successfully deliver the required documentation and signatures.

6
 Ensure Transparency at
01
Every Step of the Process
02
When using traditional offline, paper-based processes, it's challenging to
efficiently track the investor’s progress in completing documentation. The lack of
visibility also leaves investors unsure if they have completed everything correctly.
20%
This leads to time-consuming back-and-forth communications for status
updates. This not only wastes time but adds pressure on the investor, potentially
03 impacting their perception of the fund manager’s operational integrity. Percentage of subscription
documents completed
To mitigate these issues, fund managers should have transparency into successfully on the first
an investor’s progress at any given time. This includes the ability to track
04 pass using traditional
document completion and identify which action items — such as signatures
methods.
— are outstanding. Having this level of visibility can reduce communication
delays and enhance the overall onboarding experience.

05
05
A digital onboarding process can offer transparency at both ends, benefiting
all parties. Investors can see what they have done and what still needs to be
completed. A fund manager can easily track the investor’s progress without
06
having to follow up with them as often.

Onboarding documents are often lengthy, typically spanning 50 to 80 pages,

and filled with legal jargon and difficult-to-navigate forms. Digital onboarding
solutions provide transparency and completion prompts that can accelerate
the process for all parties involved.
7
 Elevate Your Toolkit About SS&C Intralinks

01
with Advanced SS&C Intralinks is the pioneer of the virtual data
room, enabling and securing the flow of information

Technology
by facilitating M&A, capital raising and investor
reporting. SS&C Intralinks has earned the trust
and business of many of the Fortune 1000 and
02 has executed more than USD 35 trillion worth of
A purpose-built digital investor onboarding process financial transactions on its platform.

can seamlessly bring an investor into your funds while

For more information, visit intralinks.com.
ensuring security and compliance. By making the
03 process more efficient, teams can focus on their
core responsibilities rather than answering numerous
client questions.

04
Firms that recognize the competitive advantage of
investor onboarding technology will streamline the
onboarding process. If you have not joined their ranks
05 yet, now is the time to start. Intralinks offers a digital
onboarding solution that integrates directly into our
leading virtual data room offering, allowing you to get up
and running quickly and easily.
06
06
Find out how Intralinks can improve
your investor onboarding process.

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