Automating sub docs takes the headache and the guesswork out of signing new investors

Jun 7, 2021

Automating sub docsNew innovative platforms can help realize efficiencies and unlock the potential of private capital.

Everyone in the financial sectors knows that the process of signing up new clients for Limited Partnerships is antiquated, time consuming and error prone.

But even many forward-thinking fund managers and investors who long ago embraced innovations like quantitative investing and high frequency trading often don’t question why they still wet-sign subscription documents, know-your-customer forms and other records, scan them and then email them back and forth.

The sub doc process doesn’t have to be that way. In fact, it’s ripe for automation.

Some data solutions can be too cookie cutter. What works for large-scale private equity firms may not work for smaller funds. Accordingly, as 4Pines Chief Revenue Officer Michael Gull recently told Harmonate Chief Executive Kevin Walkup, the best partner for automating any business operations takes a hands-on approach, offering collaborative solutions to their clients’ data needs.

You can watch the full webcast here –

4Pines, for example, deploys a transparent user interface and dashboards that enable partners to keep up-to-date with the status of sub docs as well as other correspondence and communications. They’ve automated the process, simplifying on-boarding, speeding compliance and due diligence, guaranteeing security, increasing predictability and improving forecasting.

4Pines has pushed forward a tool that will enable new partners to digitize their sub docs from the outset by intuitively walking them through the signing process. They have jumped light-years ahead in productivity by creating pop-up modules that cut through the confusion to complete Limited Partnership sign ups. If inconsistencies or issues pop up, they’re flagged for further review. People are always still involved. But the system allows firms to stay in compliance with regulations without slowing down.

For fund managers and investors, this easy-to-use platform cuts down errors and avoids missing or incomplete information, saving time and headaches from redoing forms because of tiny mistakes.

There’s also the time-saving advantages of having the information in a digital format from the get-go for the fund accounting and legal team. That not only cuts down on manual inputting but speeds up the know-your-customer protocols, customer vetting and other reviews because the data is already in the system and can be cross-referenced.

What’s more, 4Pines is an expert user of Conductor, Harmonate’s flagship application, and their clients can more easily contextualize their data and draw insights from their activities.

Just think. At the turn of the millennium, only 30 percent of Americans filed their taxes online. Now, 20 years later, 90 percent of the country send their taxes electronically because it’s faster and easier and they make fewer mistakes.

In that context, there’s no reason Wall Street should stick to pen and paper. Funds looking to improve their data operations should prepare for the future with the help of 4Pines and Harmonate.

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