London, 24 September 2025 – Accelex, a leading provider of AI-powered data solutions for private markets, and Carta, the software platform built for private capital, today released a new report highlighting a growing data challenge in the private capital industry. According to the study, 92% of surveyed fund-of-funds professionals say unstructured and delayed data from General Partners (GPs) has negatively impacted investment decisions or reporting. The report, The Hidden Cost of Growth: Data Challenges for Fund-of-Funds, surveyed 100 senior investment professionals across the UK, Europe, and the U.S., uncovering four key themes: persistent data issues, operational inefficiencies, mounting fee and investor pressures, and a growing shift toward automation and AI.

The report arrives at a time of unprecedented growth in private markets: between 2000 and 2023, private markets AUM soared nearly 20-fold to reach $22 trillion. With scale comes complexity – the industry’s data ecosystem has grown more unwieldy, with many fund-of-funds wrestling with mountains of documentation, inconsistent delivery, and little standardization. 

The way information is delivered by GPs is the biggest source of friction for LPs and fund-of-funds managers, with nearly a third (31%) struggling with the unstructured format of information and inconsistent delivery methods such as PDFs, emails and scanned documents. Other data issues include high volumes of data (28%), delays in receiving information (18%) and a lack of granularity or consistency in the data (16%).

Key findings include

• Data delivery is the biggest challenge. Nearly a third (31%) say the way GPs deliver information — often as PDFs, scanned files, or ad hoc emails attachments — is their number one pain point. 
• Data quality issues are abundant. 92% struggle with data quality, with 43% citing irregular formats, 40% flagging inaccuracies, and 38% noting varying calculation methods. 
• The push for automation is strong — and so is AI adoption. Increasing automation is a key priority for 43% of surveyed firms, while 80% are already leveraging AI or machine learning for data access and structuring. 
• Investor demands are rising. More than ever, fund-of-funds face calls for granular reporting, transparency, and real-time information — just as fee compression puts pressure on margins. In response, 56% of managers are turning to technology and automation, 44% absorbing or passing on costs, and 41% are reducing internal expenses. ‍
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• Fund-of-funds face major operational inefficiencies. 49% cite communication and coordination with GPs and their LPs as the biggest challenge, while 44% struggle with regulatory reporting. Manual processes remain widespread, with 42% pointing to difficulties in extracting and normalizing unstructured data. As a result of these inefficiencies, 33% of fund-of-funds teams’ time is spent on data handling, diverting resources from higher-value activities and alpha generation.

“For fund-of-funds, the rapid growth of private markets is a double-edged sword. Greater access to private assets drives diversification, but the volume of unstructured, inconsistent, and elayed data now poses a front-office problem — directly impacting performance and fiduciary obligations,” commented Michael Aldridge, President and CRO of Accelex. “Manual processing can’t keep pace, leaving critical decisions to be made on incomplete information. While many firms turn to AI, generic tools often add errors and inefficiencies. The real opportunity lies in technology purpose-built for private markets — solutions that transform raw documents into transparent, scalable intelligence. By adopting the right approach, und-of-funds can move beyond administrative burden to confident, data-driven decision-making.”

Jeff Perry, Chief Revenue Officer, Carta added: “Great investment decisions start with great data—and that’s exactly what fund-of-funds are missing because of the way GP data is delivered today.The operational burden is real and speed matters. It’s encouraging to see so many firms finally moving toward advanced, purpose built AI and automation. Once teams free themselves from data chaos, they can seize opportunities faster and focus on what truly matters: performance.”

To read the full research paper exploring the data challenges private markets investors face — and how firms are confronting these issues by investing in AI and automation technology, download the full report here.

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About Accelex

Accelex provides data acquisition, analytics, and reporting solutions for investors and asset servicers, enabling firms to unlock the full potential of their investment performance and transaction data. Using advanced AI and machine learning, Accelex automates the extraction, analysis and sharing of complex, unstructured data. Headquartered in London with offices in Paris, New York, Luxembourg, and Toronto, Accelex serves global alternative investment firms. For more information, visit accelex.ai.‍

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About Carta

Carta connects founders, investors, and limited partners through world-class software purpose-built for everyone in venture capital and private equity. Carta's world-class fund administration platform supports 9,000+ funds and SPVs representing over $185B in assets under administration on fund administration, SPV formation, and more. Trusted by more than 65,000 companies, Carta helps private businesses in over 160 countries manage their cap tables, valuations, taxes, equity programs, compensation, and more. Carta has been included on the Forbes' list of the World's Best Cloud Companies, Fast Company's Most Innovative list, and Inc. 's Fastest-Growing Private Companies list. For more information, visit carta.com.

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Media contacts

Chatsworth: accelex@chatsworthcommunications.com  

Carta: AmandaTaggart, amanda.taggart@carta.com

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