Firms form AltExchange Alliance for the private equity industry
Major private equity firms have formed a new non-profit global industry body, the AltExchange Alliance, which will offer the first comprehensive standard for data formats.
The common format will transform the way general partners, limited partners, fund of funds and fund administrators share, aggregate and analyze data. Alliance members have collaborated to define a detailed data format, enabling investors to streamline workflows, reducing the fund manager’s workload to support individual requests for customized reports.
“The problem the industry has been facing for years is the ability to effectively process ever increasing volumes of data,” commented Johnny Randel, CFO of StepStone and AltExchange Founding Member. “Firms have been spending considerable time and resources manually re-keying and reconciling information and less time analyzing data. Having the transfer of data automated and having agreed upon industry-defined data standards will help address this significant inefficiency.”
Ed Brandman, Chief Information Officer of KKR, and AltExchange Founding Member said adopting an industry standard enables firms to provide a more efficient and timely service for investor.
The data standard uses tailored XML taxonomies, an open standard, and spans many relevant elements including portfolio company financials, investor organizations and contacts, fund information, cash flows, capital accounts and more.
A unique aspect of the AltExchange data standard is the existence of a corresponding validation platform. Firms can submit a data file to the validation engine for certification prior to distributing or consuming it. This ensures that when a file is received, it can be used by the recipient with confidence.
For the full membership list of the Alliance see www.altexchange.com.