eVestment Continues Data Expansion Drive with Preqin Integration

The growth of the private fund market is having a major impact on the dynamics of the software and data industry that supports it. For today’s allocators, there is enormous complexity in terms of the number of offerings to choose from and the breadth of strategies and industries being targeted. As the proportion of assets being placed in alternatives rises, the pressure to perform has never been higher.

Allocators, even those reliant upon consultants, are increasingly turning to software and data solutions to help them manage their programs effectively. We have seen a number of new products targeted toward this sector both from existing players expanding their offerings and start-ups seeking a foothold in a fast-growing market.

For me, eVestment has been one of the most interesting companies to track, and today sees the announcement of another data integration partnership to follow on from the recently announced deal with Pitchbook, with Preqin’s industry benchmarks make their way onto eVestment’s Private Markets product.

I feel that eVestment is taking a customer-centric approach to developing its suite of products, employing a willingness to work with widely-used datasets in order to increase existing clients’ satisfaction and better attract new users to its ecosystem. It’s a smart strategy.

Having a trusted source of market data is now an integral part of the portfolio management process for allocators serious about managing their programs effectively. Software solutions which do not facilitate the integration of trusted market data sources will increasingly find themselves at a disadvantage in an environment where this functionality is becoming more common. As I mentioned in an earlier article, users are also discerning when it comes to the quality of these integrations too.

It is encouraging to see software providers providing clients with multiple options when it comes to data integration. I have heard all the arguments about the relative strengths and weaknesses of the various databases and benchmarks, but the reality is that allocators need consistency. It is far easier to sell an allocator on an excellent analytics platform if they can immediately utilize the benchmarks which they are already using to track performance.

eVestment should be applauded for successfully taking a number of standalone products such as TopQ and Public Plan IQ and creating an interconnected suite of tools which is supported by high quality external data sources. The integration of Preqin data into the eVestment Private Markets platform reinforces eVestment’s commitment to giving their allocator clients exactly what they want and need to do their jobs effectively.

DealCloud and Preqin: What Makes Integration Powerful?

Market data integration is an increasingly important feature for CRM end-users; such partnerships are common in the industry with Preqin and other providers’ data available on a variety of platforms.

With DealCloud joining the list of partners for Preqin data, I want to take this opportunity to examine what makes for a best practice integration project.

“Data Integration is not just a box ticking exercise”

I seriously question whether the people who developed my car’s terrible Bluetooth integration have ever used a cellular phone or operated a motor vehicle. It takes a good 30 seconds to activate, fails to show the name of anything other than the first track I play on Spotify and will sporadically disconnect for no reason. Incoming calls require the pressing of multiple buttons as I urge the caller to be patient and not hang up. Conversely, my wife’s car connects instantly, shows album covers while playing music, and deals with calls flawlessly.

When it comes to integration, not all developments are equal. To avoid frustration down the line, here are some of the key things to look for when assessing the quality of this vital feature:

What is powering the integration?

There are two ways in which data can be pulled into a platform. API integration is best practice, pulling data directly from the source in real time. The alternative is a periodic data dump which can sometimes be easier to develop from a technical perspective, but can be inferior in terms of the timeliness of data if not refreshed often. This might not sound like such a big deal, but for data sets where news can dictate activity it can make a significant difference. For example, a live or near-live feed of Preqin’s LP news can help fundraisers to react quickly to relevant updates which might otherwise be missed with a weekly or monthly refresh.

What data and functionality is being included?

Preqin, Pitchbook and other market data providers maintain numerous datasets, encompassing LPs, GPs, fundraising, performance, deals and more. When considering a CRM, examine the breadth of integration with your favored data provider and the depth of data. A good integration would not see you switching back and forth between platforms due to insufficient detail being carried across. Another related factor is functionality - does the integration allow for the discovery of previously unknown entities via a search on the CRM platform?

What are the subscription terms?

Data providers will often encourage existing clients to add more users, providing added value which is subsequently captured through increased fees. This can naturally cause conflict with CRM integration if there is any chance of a client gaining increased access without paying for it. I don’t see fees around integration as a bad thing if additional value is being offered, but make sure you know what the financial implications of an integration will be as you consider your overall budget and spend. Don’t assume that your single-user data license will translate into an enterprise-wide access via integration on the CRM side.

How is the UX?

I’ve seen a lot of integrations, some are integrated seamlessly into the workflow and work extremely well. I’ve seen some very clunky solutions which, like my car’s Bluetooth, don’t. A key part of the user experience will be how the integration deals with duplication and information asymmetry. You may know more than the data provider about an individual or entity. How is such disparity dealt with on the CRM side? Is there a single sign on process? Will the integration work on mobile? The better the UX, the more the data will be used and the more value it will add.

DealCloud and Preqin

The key point to take is that integration is not a box-ticking exercise and users should examine the quality of this important feature when assessing their providers. Different users will have different priorities, but the integration offered by DealCloud and Preqin appears to be a high-quality, thoughtful development. Data is being refreshed regularly from the live database which is a big plus, the breadth of data on LPs is significant and the functionality on the front end has been carefully considered with involvement from both the Preqin and DealCloud development teams based on feedback from mutual clients.

DealCloud is one of the names I hear most commonly when discussing CRM and is one of the fastest-growing platforms available today. Combined with Preqin’s data, which is especially strong for fundraising and fund investment purposes, this makes for a compelling front office solution.

PE Stack’s thoughts on Pitchbook and eVestment’s Data Partnership

Two of the leading names in the private fund data world recently announced a partnership that sees Pitchbook’s fund performance and firm data available to users of eVestment’s Private Markets product. In addition, Pitchbook’s benchmarks will also be accessible to eVestment users.

What PE Stack says:

Since the NASDAQ acquisition, eVestment has been one of the most exciting vendors to watch, with this deal the latest in a series of acquisitions and partnerships that have enabled them to gather serious momentum in the private fund space.

I know first-hand that building and maintaining a high-quality source of performance data is tough, both in terms of assembling the data set in the first place, but perhaps more importantly in terms of building a good reputation. Pitchbook is one of a select group of trusted vendors with performance data and benchmarks which are high-quality and suitable for vital tasks such as due diligence.

I believe that by partnering with Pitchbook instead of building a competing dataset, eVestment put themselves in a strong position where their excellent tools and analytics can be accessed without having to convince users to switch to a new set of benchmarks and performance metrics. Don’t under-estimate how important consistency is for many GPs and especially LPs in the space.

It’s a smart strategy that will allow eVestment to attract new clients at a fast pace – especially on the GP and LP side. For Pitchbook, this move cements their position as a trusted provider for fundraising and due diligence data, and will increase their exposure to end-users on both the supply and buy side of the fundraising market.

I expect to see more deals which bring external data sets directly into eVestment’s growing ecosystem. Their mix of high-quality internal data products (Public Plan IQ), powerful tools (TopQ) and willingness to incorporate external data sources is unique in the market today. What makes the offering especially compelling to me is the effort that eVestment have put into integrating their portfolio of products into a powerful, inter-connected suite.

For more information on the specifics of the deal, please see the information page here:

https://www.evestment.com/privatemarkets/pitchbook-data-partnership/