Breaking Down Data Silos: The Untapped Opportunity in Private Markets

Private equity and private markets firms sit on a goldmine of data, spanning investors, funds, portfolio companies, and operations. Yet for many firms, that data is fragmented, hidden away in disconnected systems, spreadsheets, and emails. The result? Slower decisions, higher costs, and increasing frustration for both internal teams and external investors. 

At a time when LP expectations for transparency, speed, and better reporting have never been higher, firms that continue to operate in silos are putting themselves at a competitive disadvantage. The good news: breaking down data silos is one of the most impactful steps a private capital firm can take to unlock operational efficiency, sharper insights, and superior investor service. A proper data strategy is also the foundation for the application of AI opportunities in the short and medium term. 

The State of Data in Private Markets Today

Despite managing highly sophisticated investments, private markets operations often lag far behind on the technology front. Data about investors, funds, and portfolios is typically scattered across: 

• Excel spreadsheets maintained by individual team members.
• Legacy CRMs that don’t integrate with fund accounting or portfolio monitoring. 
• Bespoke reporting tools used by finance or IR. 
• Administrator portals providing only partial visibility. 

This fragmented approach forces teams to spend significant time reconciling information manually, responding to ad hoc LP queries, and preparing reports that could — and should — be automated. 

In fact, recent surveys show that more than 60% of private equity firms cite “data management challenges” as a key operational bottleneck1. And as funds grow larger and more complex, this challenge compounds. 

Why Data Silos Are a Strategic Risk

Data silos aren’t just an operational nuisance, they are a strategic risk.  

• Slower, less-informed decisions: Investment and portfolio management teams lack timely access to the full picture, limiting their ability to respond to market or company developments. 
• Missed value-creation opportunities: Without integrated portfolio KPIs, it’s hard to benchmark, identify underperformers early, or replicate successful strategies across companies.
• Eroding LP trust: Investors expect clear, consistent, and timely reporting. Disjointed processes create errors and delays that damage credibility.
• Inefficient use of talent: High-cost professionals spend too much time on low-value manual work, rather than focusing on strategic priorities. 

In a competitive fundraising environment, these risks can translate into lost capital, weaker performance, and a harder sell at your next fundraise. 

The Opportunity: Connected, Accessible Data 

By contrast, firms that successfully break down silos and build a unified, digital foundation for their operations see significant upside: 

• A single source of truth covering the entire investment lifecycle — from fundraising and onboarding to deployment, monitoring, and exit. 
• Immediate visibility into fund performance, portfolio company KPIs, and investor allocations.
• Automated investor reporting and dashboards that meet LP demands with minimal effort.
• Data-driven insights that power better decision-making, value creation plans, and risk mitigation.
• Starting to take advantage of the opportunities presented by AI in data analytics 

Firms that implement integrated platforms commonly report cutting quarterly reporting cycle times by up to 50% and reducing manual errors significantly. 

How to Start Breaking Down Silos

So, how can your firm get started? Here are four practical steps:

1. Audit your current data architecture: Map out where data lives today, who owns it, and how it flows between teams and systems. Identify gaps, duplications, and bottlenecks.
2. Align stakeholders around a digital vision: Breaking silos requires buy-in from senior leadership, operations, finance, IR, and deal teams. Make the case for change by linking it to fund performance and investor expectations.
3. Choose the right platform: Look for an end-to-end solution that integrates the full investment lifecycle, rather than patching together point solutions. The right technology partner will also help you plan and execute a phased rollout.
4. Build a roadmap for adoption: Prioritize high-impact areas first (such as investor onboarding or portfolio monitoring) and develop training programs to embed the new ways of working.

Why Now?

Market pressure from LPs and competitors are shaping a race to digitalization efficiency, boosted by the promises of AI applications:

• LPs are demanding more frequent, detailed, and ESG-inclusive reporting.
• Competition for capital is increasing — operational excellence is a differentiator. 
• Modern digital platforms have matured and proven their value at firms of all sizes. 

Conclusion: Unlock the Untapped Potential 

The private markets industry is entering a new era, one where operational excellence and data-driven insights will be just as critical as finding the right deals. 

Breaking down data silos is no longer optional; it’s a strategic imperative. Firms that embrace an integrated, digital-first approach position themselves to make faster decisions, create more value, and deliver a superior LP experience. 

At Untap, we help private equity, venture capital, and private markets firms integrate their operations and unlock the full potential of their data. Our end-to-end platform covers the entire investment lifecycle, giving you the clarity and control you need to outperform.

Ready to Untap your potential? Get in touch!