By Justin Partington, Global Head of Fund and Asset Managers
In early February, IQ-EQ sponsored the BVCA’s annual CFO-COO Reception, a premier networking event for senior finance and operations professionals in private equity and venture capital. Held at the Hotel Amano in Covent Garden, London, the event provided a valuable platform for industry leaders to connect and exchange insights.
A highlight of the event was my fireside chat with Chris Mills, Managing Director of Citisoft, where the topic was: ‘Alternatives investments: shaping the future with data’. This discussion explored the pivotal role of data in aligning operations and technology with business strategies, the evolving role of the CFO when it comes to data, how outsourcing can add value for firms, tips for ensuring robust data governance, and more.
Here’s a look at some key insights from the discussion.
Adopting the right technology solutions
Digital transformation is a major theme across the financial services landscape today. So, I asked Chris about the types of solutions CFOs should be prioritising to enhance operational efficiency and improve data management within their firms.
Chris emphasised that firms today require platforms that can deliver technical flexibility and operations capability, as well as a strategic business partner that can adapt to the evolving demands of the industry. He stressed the importance of platforms that can seamlessly integrate data and deliver insightful analytics and domain-specific intelligence.
Specifically, Chris highlighted the need for platforms that can accommodate the complexities of alternative investments such as private equity, private debt and digital assets. Though they bring their own challenges around cost and complexity, such integrated solutions hold potential as a source of competitive advantage by reducing the need for multiple disparate systems, thereby saving time and resources.
It’s worth pointing out that Citisoft recently conducted a survey of UK asset managers on transformational change. This found that data governance, ESG oversight, and seamless integration of the Investment Book of Record (IBOR) were key priorities for firms in 2025.
How outsourcing can add value
Outsourcing continues to be a prominent trend within financial services. So, I was keen to get Chris’ view on how outsourced service providers can contribute to achieving superior data outcomes.
His take was that outsourcing can be instrumental in managing non-core or non-competitive functions. By offloading these functions, firms can reallocate resources to data initiatives that enhance their competitive edge.
His advice for firms that are considering outsourcing certain functions was to think strategically about where they have a competitive advantage or specialism. This should always be managed internally. Firms can then look to outsource other areas that are non-core. Ultimately, the goal of outsourcing is to allocate resources more efficiently so that firms can reinvest in areas that drive differentiated value.
Going back to Citisoft’s UK transformation survey, the most common outsourced functions were fund accounting, valuations, and settlements/clearing. Meanwhile, middle office capabilities were only 40% outsourced, with compliance and risk hovering below 5%.
The evolving role of the CFO and COO
We also discussed the evolving role of CFOs and COOs, specifically with regards to data. Here, Chris asserted that these roles are increasingly pivotal in driving strategic decisions within asset management – necessitating a shift beyond traditional financial responsibilities – and that data is fundamental here. He noted that today, CFOs and COOs are actively engaged in ROI discussions and playing a key role in enabling firms to leverage data for their competitive advantage by validating data purchases, analytics, systems and services. He added that their unique cross-organisational perspective allows them to connect the dots effectively.
Tips for effective data governance
Finally, I sought Chris’s insights on best practices for data governance. Here, he stressed that effective data governance must be a business-wide endeavour and not solely an IT initiative. He also highlighted the importance of having clearly defined objectives, whether it’s improving data quality through measurable metrics or ensuring data consistency across the organisation. Additionally, he underscored the importance of understanding and adhering to regulatory obligations such as the EU’s Digital Operational Resilience Act (DORA) in mitigating risks and ensuring adherence to legal obligations. A robust data governance strategy is built on all of these foundational elements.
