Bridging the gaps: People, process, and technology lessons from the private market front line

At the recent Private Equity International (PEI) Women in Private Markets – North America Conference, the Williams Lea-sponsored lunch session, “Hidden risks: The impact of poor recordkeeping in private markets,” sparked a lively and revealing discussion among more than 60 industry professionals. Rather than approaching the topic as a checklist of risks and remedies, the session unfolded as a narrative about the evolving—and sometimes uneasy—relationship between people, process, and technology in private markets.

What does “recordkeeping” mean in the context of private markets? For many, the term was almost synonymous with “data protection,” a narrow interpretation that potentially misses the broader operational and strategic implications. As participants shared their experiences, a more nuanced picture emerged, one colored by the realities of different sized teams, rapid growth, and the mounting pressures of compliance.

People: Ownership and skill gaps

As the discussion began, it quickly became evident that for most firms, recordkeeping was not assigned to any one individual explicitly. Attendees described environments where process documentation was acknowledged as beneficial in theory but was rarely implemented consistently in practice. This lack of ownership creates a fragile system, vulnerable to staff turnover and ad hoc, improvised solutions. One participant reflected on a previous role at a large investment bank, contrasting its strict documentation standards and clear accountability with the looser, more improvisational approach at her current, smaller firm.

This absence of structure is further compounded by a skills gap. Administrative support teams are increasingly expected to master new technologies, yet many lack the necessary training or resources. Upskilling is not merely a luxury; it is essential for improving staff productivity by enabling employees to focus on higher-value tasks rather than routine administrative work.

Importantly, a growing trend within PE firms is emerging: A strong desire for more structured and disciplined processes. Areas such as expense management, which historically have been managed loosely or informally, are now being recognized as critical functions that require closer oversight and tighter controls. PE firms understand that implementing more rigorous process frameworks is necessary to enhance operational efficiency, reduce risk, and support sustainable growth.

Process: Compliance and the elusive SOP

Compliance quickly took center stage. Regulatory demands are intensifying, pushing firms to adopt more rigorous recordkeeping practices. Yet, the reality on the ground is often messy. Most workflows are still driven by email and manual entry, with little automation or integration between systems. Standard operating procedures (SOPs) are rare, and backup support is almost nonexistent.

Despite these challenges, everyone agreed on the value of process documentation. Accurate CRM input and deal analysis are now central to operational efficiency, and the lack of standardized processes is a growing liability as firms scale or face regulatory scrutiny.

Technology: Promise, pitfalls, and security

Technology was both a source of optimism and frustration. Larger firms are beginning to experiment with tools like Microsoft Copilot and GenAI platforms such as BlueFlame AI, which can automate tasks ranging from proposal screening to workflow management. However, for smaller firms, technology adoption remains piecemeal. Excel spreadsheets and Word documents are still the norm for capturing meeting notes and correspondence, and even when CRM systems are in place, poor implementation and user adoption often lead teams to revert to manual methods.

Security concerns also loom large. Many financial services firms restrict the use of AI tools due to data protection risks, and the Chief Information Security Officer (CISO) role has become pivotal in setting protocols for everything from biometric authentication to regular security training. The tension between innovation and security is palpable: Firms want to automate and streamline, but not at the expense of client confidentiality.

A glimpse of what’s possible

The session closed with a sense of cautious optimism. The hidden risks of poor recordkeeping are real and growing, but so are the opportunities for improvement. The key takeaway? Progress depends on a holistic approach—one that combines the skills and engagement of people, the clarity of processes, and the enabling power of technology. As private markets continue to evolve, those firms that can harmonize these elements will be best positioned to manage risk, drive efficiency, and unlock new value from their data.

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