Investor expectations have moved on, with quarterly internal rate of return summaries no longer seen as sufficient. Instead, investors want to understand what is happening at a deeper level – asset performance, portfolio company data and the broader context behind the numbers. They want access that is consistent and usable, not delayed or locked in static reports.
In turn, this is prompting investment firms to take a closer look at how they manage communications with their investors – and what many still treat as a reporting problem often turns out to be a systems issue. The challenge is not just presenting data, it is getting it organised, keeping it accurate and making it accessible without losing oversight.
Many firms still rely on tools built for a narrower purpose, such as onboarding or fund accounting, which are not well suited to deal with today’s volume or complexity. Reporting then becomes a manual process, pulling information from multiple places, adjusting it and formatting it for different investors. The result is often slow and inconsistent.
The real issue is that reporting reflects the quality of the underlying set-up – if onboarding, data-capture, calculations and permissions are handled in silos, it is difficult to create a coherent output. The way these elements are structured matters. When firms start by thinking about how everything fits together, they are in a better position to respond to changing investor demands.
Layered reporting
One of those changes is the need for layered reporting. More sophisticated investors are now asking for more than fund-level returns, with some wanting to see how individual portfolio companies are performing while others want asset-specific data. Not all investors need the same level of access – and not all data should be shown in the same way. That requires systems that can support different levels of reporting, without having to rebuild processes every time requirements shift.
Custom metrics are also becoming more common. Some investment firms want to present returns in ways that suit their investment model, such as cash-based yield over multi-year periods, rather than relying on a standard set of indicators. Without flexibility in how data is structured and calculated, this becomes difficult to manage across different investors and reporting cycles.
“When firms start by thinking about how everything fits together, they are in a better position to respond to changing investor demands.
Reporting has become more than a technical output. It is a way for investment firms to demonstrate they are in control of their operations, they understand their portfolio and they are being clear with their investors.”
AI is starting to play a helpful role here. It is already being used to reduce the time it takes to map subscription documents, extract structured data from older records and handle basic onboarding tasks. In some cases, it is accelerating processes that previously took weeks.
While these uses are still behind the scenes, there is potential for AI to become part of the day-to-day interface to help internal teams manage tasks or respond to investor questions based on live data. We are already using AI to automate field-mapping in subscription documents, reduce onboarding time and extract structured data from legacy PDFs.
That said, no system works if investors do not trust the information – accuracy, timing and data privacy all matter. Investment businesses are increasingly cautious about handing over sensitive information to platforms that aggregate or pool investor data, especially when it is unclear how that data might be accessed or used by others. The preference now is for systems that offer more control where firms decide exactly what gets shared and who sees it.
Building confidence
This matters because reporting has become more than a technical output. It is a way for investment firms to demonstrate they are in control of their operations, they understand their portfolio and they are being clear with their investors. Especially during periods of uncertainty, regular and structured updates go a long way toward building confidence.
It also plays a role in future fund-raising. Investors want to know they will receive useful, timely information – not just when things are going well but also when conditions are harder. Firms that can show this level of responsiveness, and do it without creating internal bottlenecks, are more likely to retain support across cycles.
To get there, many firms will need to rethink their current systems. Trying to link together a mix of disconnected tools rarely works well under pressure. What is needed is a system that supports growth, handles different reporting needs and keeps data where it belongs – under the firm’s control.
At a time when trust is currency, reporting is not just about metrics – it is how investment firms prove they are in control, responsive and ready to grow. With the right system, every report becomes a reason to believe.
Trilliam Jeong is CEO at WealthBlock
