b'ILPA PRIVATE MARKETS EDGE Q2 20214 5TECHNOLOGY IS THE WAY FORWARDPULSE CHECK ON MARKET SENTIMENT Covid-19 hit, the most effective firms were already deployingbeen pushed aside in favor of prioritizing tactical responses toeffort will extend to an enhanced Due Diligence Questionnaire, As I sit down to write this letter, I have just left the conclusionartificial intelligence, big data, web-based analytics and otherthe pandemic. The desire to move towards shared definitions,with the aim being a more consistent and sophisticated exchange oftheILPASummitEurope.Forthesecondyearrunning,technologies to make smarter, faster decisions about companiescommondatastructuresandstandardizedreportingregimeswith GPs on the ESG considerations that matter most to LPs. And approximately 200 private equity professionals from both sidesandtheirprospects.Overthepastyear,theyvelearnedthatis palpable. The risk of inaction appears exceedingly low at thisour ILPA Institute programs will expand in the months ahead with oftheAtlanticgatheredtorefreshconnections,initiatenewthese tools can lead to significantly deeper insights into howpoint. Instead, the principal challenge for market participants,targeted ESG coursework.relationships and share market insights. This event affords us aindustry patterns are shifting, where disruption is coming fromincluding policy makers and regulators, will be coalescing around real-time pulse check on how the market is shaping up in yearand whether their portfolios are prepared for whatever is cominga multi-jurisdictional framework that can be applied consistently next. across a range of markets and strategies, without creating anStay tuned for more from ILPA on ESG, which will be the lead twoofthepandemic.Investmentactivityremainsbrisk,thatadministrative burden that stops forward progress in its tracks. feature of the next Private Markets Edge and let us know how ILPA much is clear and comes as no surprise. Summit conversationscan best help your organization on this foundational issue. reconfirmedhowsuccessfultheindustrysadaptationstotheAlthough the focus of the study is on GPs, the same basic message virtual environment have been. While it remains to be seen whichholds true for LPs. Those able to harness and deploy technologyOver the past year, ILPA too has materially raised its level of of these adaptations will become permanent, there is universalto greater effect will unlock the full potential of their investmentindustryengagementregardingESG.Withoutacoordinated agreement that we have uncovered operating efficiencies thatteamsandmateriallyimprovetheoddsofearningsuperiorapproach to policy, practices and standardsone which is global would have seemed, at best, farfetched in 2019.returns over time, with an added bonus of raising team morale.in nature and accounts for the LP perspective and experience, LPsunabletobreakthroughmanual,error-prone,processespractical,durablesolutionsthatattractwidespreadadoption associatedwithdatacollection,aggregationandanalysiswillwillbehardtocomeby.Itisalsoofparamountimportance WHERE WOULD WE BE WITHOUT ZOOM? increasinglyfindthemselvesastepbehindtheirpeers.Thethatanythingdevelopedfortheprivatemarketsdovetail long-range consequences of failing to solve the LP technologywiththepublicmarkets.Whilestrategyandstructure-specific- STEVE NELSON, CEOTechnology has brought the industry closer over the last year. The shift to virtual interactions could have brought activity to aconundrum are real. accommodationswillberequiredforprivatecompanies,any screaming halt; instead, LP-GP dynamics have actually improvedfundamental disconnect will, over time, undermine even the best in some meaningful ways. Accessibility is generally reported asof intentions.being better than ever. Information sharing has been robust andThus, we made LP Technology the focus of this issue of Private of a high quality. And with travel barriers removed, opportunitiesMarkets Edge. Building on the findings of the 2020 ILPA Industry emerged to build relationships with a broader cross-section ofIntelligence Report on LP Technology, we go deeper on how LPsOur work gains steam this summer, with the release of an ESG professionals at partner organizations. From the LP perspective,can stay current on the ever-evolving landscape of technologyAssessmentFrameworkforLPstoemployinsizingupESG theno-costoptionofincludingassociatesoranalysts,forproviders and solutions and provide summary information onintegration at both existing and prospective GP relationships. That example, in virtual AGMs or due diligence exercises has deliveredkey players in the market today in the In Focus section. There exposure that may not have otherwise been possible and will payyouwillfinddetailsonthelatestILPAresource,Technology dividends down the road. Vendor Resource Center. This resource should help LPs seeking to evaluate technology vendors across a range of categories, includinganalytics,CRM,datamanagementandportfolio LP TECHNOLOGY REMAINS A PAIN POINT monitoring among others.While technology has undeniably served the industry well over thepast14months,theapplicationoftechnologytoprivateILPA ESG RESOURCES ON THE HORIZON THE LEAD -Each quarter, ILPA Private Markets Edge Take Action section focuses markets program construction and management for LPs remainsReturning to the conversations that took place at the ILPA SummitLP TECHNOLOGY on an issue facing LPs, providing actionable recommendations that amassivepainpoint.IntheirGlobalPrivateEquityReportEurope, a range of ESG-related topics featured prominently. It islead to better outcomes. 2021, Bain & Company observes: PE firms need to accelerateall too easy to imagine a scenario where these issues might have theirploddingtransitionfromanalogtodigitalBefore WHATS INSIDE?IN THIS ISSUE MEMBERS WILL: LP TechnologyActionable ESGFund Terms LP Talent Deploy and integrate Gain access to vendor fact sheets that will enableRead about a fellow LPs study on the macrotechnology effectivelythem to make informed choices on technologytrends emerging from the COVID pandemic How to effectivelyUnderstand what Attract, develop and retain integrate ESG intoterms are markettop talent for long-term Hear from other LPs on the Voices of PrivateLearn more about continuation funds and how toinvestment programs successEquity podcast dedicated to the technologyanticipate and mitigate associated risks modernization journey'