Private Markets Are Racing to Modernise, But Data Foundations Matter More Than Ever
As private markets continue to scale in size and complexity, the pressure on firms to modernise their technology stacks is accelerating. But as new regulation and heightened scrutiny around AI come into play, the conversation is shifting from how fast firms can innovate to how safely and sustainably they can do so.
In a recent article by CFOtech, David O’Malley, CEO of LemonEdge, shared his perspective on why the next phase of private-markets digital transformation must be built on stronger data foundations, not just layered automation.
AI Raises the Stakes for Back-Office Technology
AI is rapidly moving from experimentation to production across private markets. Firms are exploring its potential to accelerate closes, surface insight and reduce manual workloads. But as regulators sharpen their focus on transparency, explainability and governance, it’s becoming clear that AI cannot be safely deployed on top of fragmented or inconsistent data.
As David notes in the article, without a single, governed source of truth, AI risks amplifying errors rather than eliminating them. In complex fund structures, where auditability and investor confidence are non-negotiable, this creates material operational and regulatory risk.
Modernisation Is No Longer Optional, But It Must Be Done Right
Legacy systems, spreadsheets and disconnected tools are increasingly misaligned with the realities of today’s private markets. Global fund structures, faster reporting cycles and growing LP expectations are pushing finance and operations teams to rethink how their core platforms are designed.
The firms pulling ahead are not simply adding new tools, they are re-architecting their back office around clean, consistent data at source. This is what enables automation and AI to move from aspiration to impact, while maintaining control, auditability and trust in the numbers.
Why Data Integrity Comes First
A recurring theme in the article is that data integrity is now a strategic issue, not a technical one. Strong data foundations allow firms to:
- Shorten close and reporting timelines with confidence
- Reduce manual reconciliation and operational risk
- Safely introduce advanced automation and AI into critical workflows
- Meet increasing regulatory and investor scrutiny without adding complexity
As private markets evolve, technology decisions made today will shape firms’ ability to scale tomorrow.
Read the full article on CFOtech to hear David’s full perspective on how private markets can modernise responsibly in an AI-driven world.
👉 https://cfotech.news/story/private-markets-race-to-modernise-tech-amid-ai-rules
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