Buying Entity Management Software: What Are the Must-Haves?

When evaluating a prospective entity management software solution, you should examine how effectively it addresses four key facets of entity management, which include:

  • Transparency
  • Governance
  • Portfolio Operations
  • Security

A solution that effectively resolves these aspects of entity management will include these must-haves:

Investor Engagement Capabilities to Promote Transparency

Investors are at the center of all you do, so if you want to build trust between your firm and the investors you serve, you must proactively work to optimize your business transparency. The right entity management software for your business will promote transparency by providing user-friendly record-keeping and report-generation tools.

When assessing the transparency-related features of a solution you are considering, we suggest asking the following questions:

Does the Software Generate Detailed Audit Trails?

A top entity management software solution will serve as a single source of truth that contains all of your firm’s vital records. Compiling all of your records into a centralized repository expedites the sharing of information so that you can keep your investors in the loop.

In addition to providing your team with that source of truth, the best entity management solutions will also generate detailed audit trails that your firm can use for compliance and governance purposes. As part of this functionality, you will be able to control and track who accesses your client records. 

Does the Software Provide an Investor Portal?

The ideal software platform will make it easy for investors to access proprietary information by providing user-friendly self-service tools, such as a client portal. While the portal should be easy for authorized users to access, it must not sacrifice security for convenience. 

With that in mind, make sure to consider what sort of security protocols a platform has in place to protect your clients and their assets. At a minimum, the platform should require investors to complete two-factor authentication to verify their identities. 

End-to-End Governance Solutions

Effective governance promotes financial integrity and strengthens trust between your firm and the clients you serve. However, governance initiatives must not hinder organizational agility, as your firm needs to be able to make complex decisions quickly in order to capitalize on emerging investment opportunities. 

The best entity management software solution for your business will facilitate optimized governance without slowing down decision-making processes. To assess the efficacy of a solution’s governance capabilities, you should ask:

Can the Platform Facilitate Remote Governance?

When selecting an entity management solution, make sure that you select an option that facilitates remote governance. The software you choose should allow you to digitize administrative processes, such as minute-taking or conducting board evaluations. Replacing these traditional manual processes with digital alternatives will enhance your organizational agility and increase your ability to compete in the modern asset management space. 

Does the Solution Include Board Management Tools?

The best entity management software solutions will help you manage core board functions, such as voting or proposing resolutions, and they can promote remote board management by enabling all members to access key documents from a centralized data repository. 

Dynamic Portfolio Operations Tools

Portfolio operations are the core function of any PE firm. As such, choosing entity management software that modernizes portfolio operational functions should be a top priority. When assessing the portfolio operations tools of an entity management software, we suggest asking questions that include the following:

How Does the Platform Facilitate the Sharing of Sensitive Data?

As you are well aware, a wide range of information needs to be shared between fund managers, investors, partners, and other members of the organization. Some of the information that will be changing hands includes investment updates, performance reports, and financial data. 

In order to facilitate the safe sharing of this information, the entity management software solution you choose must include customizable access control capabilities. It should also feature encryption software to keep such sensitive data out of the wrong hands.

Does the Platform Streamline Workflows?

Efficiency is the name of the game when it comes to portfolio operations management. Therefore, you should ensure that you select a software solution that allows your team to streamline its workflows. 

Top-end entity management software facilitates this in several ways. Such a solution offers a centralized portal through which decision-makers can access vital information, even if they are working remotely. It also includes automation tools that can expedite the creation of various documents and thereby significantly reduce the time it takes to distribute information to clients and process transactions. 

Robust Security Measures

When investors partner with your firm, they trust you to protect their assets and confidential data. 

That brings us to the final factor you should consider when selecting entity management software — security. The two key questions you should ask regarding the security capabilities of a software solution are as follows:

Will We Control Our Own Security Settings?

The best entity management software solutions allow you to control the platform’s security settings, enabling you to customize them so that they align with your company’s retention rules and relevant industry regulations. 

How Does the Platform Protect Our Sensitive Data?

While you should be able to control your own security settings, the developers of the platform you select should have put several measures in place to protect your data from the onset. 

Make sure to select a platform that encrypts your data while it is on users’ devices, in transit, and at rest on your network. Also, verify that the platform is protected by other security solutions, such as firewalls and antivirus software. 

Looking for a Program that Features All These Must-Haves?

Choosing an entity management software solution does not have to be difficult. Athennian business software includes sophisticated entity management tools, powerful security features, automation capabilities, and much more. With that being said, if you would like to learn more about Athennian and how it can give your business a competitive edge, we invite you to book a demo today.

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"Very easy to use, modern interface, excellent support. Athennian has an amazing conversion team. They helped us migrate all of our data and the training was very good."

Megan W, Director

“When we were reviewing other entity management systems on the market, in some cases, we were not comparing apples to apples. But with Athennian, there was really no comparison. The paralegals were so excited to come on board.”

Linda Escobar, Senior Paralegal

"There are so many things I like about this program, but the one thing that really stands out is the user friendly interface. The program is fast and allows me to enter corporate information very quickly and efficiently. I would also like to note that Athennian provides the most the fantastic customer service."

Kelly R, Corporate Law Clerk