Investment Software Providers Say the Future of Blockchain Is Now. GPs Are Still Catching Up.

Private equity software providers are going all-in on blockchain and digital ledgers, aiming to add a layer of trust and transparency to processes like valuation, capital calls, and waterfall events.  

But the technology’s end users are still catching up, constrained by limited research and development budgets and uncertainty about how to use blockchain effectively.  

Last week, Apex Group announced that it had partnered with fintech firm Inveniam Capital Partners to offer its valuation software, which is blockchain-enabled, to its clients. The same day, Broadridge Financial Solutions announced that its Private Markets Hub, which uses a digital ledger to facilitate its processes, is now available to North American funds.  

“These are applications and elements of crypto that don’t generally make headlines,” said Jonathan Doolan, managing partner at consulting firm Indefi. “It’s more around what is the application of the technology.”