From our conversations with customers and prospects, we see that Investor Relations teams are facing an increasing number of requests for proposals (RFPs) and due diligence questionnaires (DDQs) from LPs. In fact, a survey by Preqin last year found that LPs sent an average of 29 RFPs per year in 2021, up from 22 in 2019, and this trend is expected to continue in 2023. This surge in demand can be attributed to factors such as increased competition for LPs and greater emphasis on transparency and accountability.
However, investor relations teams are finding it challenging to manage the increasing workload with decreasing budgets thanks to the current macroeconomic climate. Fortunately, industry-specific AI and automation can help to address this challenge by streamlining the RFP and DDQ process. By leveraging these solutions, IR teams can automate repetitive tasks such as data entry and document creation, enabling them to respond more efficiently to LP requests and ultimately answer more RFPs and DDQs to win and keep clients.
Companies that adopt RFP automation solutions can reduce their response times by up to 40%, according to a 2020 report by McKinsey & Company. The report also notes that companies can achieve cost savings of up to 30% by automating their RFP processes. Pretty powerful statistics if you ask me.
It’s clear: automation is becoming increasingly critical for investor relations teams to effectively manage the growing volume of RFPs and DDQs. By leveraging automation solutions, teams can not only reduce the burden of repetitive tasks but also improve efficiency and accuracy, while reducing costs and avoid staff burnout — a crucial expense in any economic environment.
Get in touch to find out how we are leveraging AI in our platforms and making IR and RFP teams' lives easier.