Portfolio Management Software Optimization (for Financial Services)

Preface

Nearly all clients are seeking greater prosperity in 2024.

While client organizations are still focused on cost reductions to meet the challenges of their new economic and market realities, the pent-up demands of the business are increasingly calling for innovation, automation, and organizational performance improvement.

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• Automating tasks (RPA) to streamline efficiencies
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• Empowering flexible (Cloud) solutions for more cost-effective scaling

This drives greater innovation, improved organizational performance, and significant cost savings ranging from 25-30% (depending on industry, scope of transformation, maturity of transformation, and the methodology and execution) while at the same time, lowering risk by diversifying and improving the technology supply chain.

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Intro:

In today's dynamic financial landscape, portfolio management software plays a crucial role. But with a plethora of options, choosing the right one can be overwhelming. This blog dives deep into iLevel, a prominent player in the portfolio management software arena; a company that has carved a niche for itself by catering specifically to the needs of alternative investments.

Background:

Established financial institutions and ambitious startups alike require robust portfolio management tools. Ipreo (founded in 2006 and makers of iLevel), was acquired by IHS Markit (which came into existence in 2016 through the merger of IHS Inc and Markit Ltd) in August of 2018. Subsequently, S&P Global acquired IHS Markit in February of 2022, bringing iLevel under the S&P Global umbrella.

What is iLevel?

iLevel is a cloud-based platform designed to streamline data collection, analysis, reporting, and valuation for alternative investments. It caters to a broad spectrum of users, including:

• General Partners (GPs)
• Limited Partners (LPs)
• Investment Consultants
• Fund of Funds

What Does iLevel Do?

iLevel offers a comprehensive suite of features, including:

• Centralized Data Management: Streamline data collection from various sources and ensure data accuracy and consistency.
• Performance Measurement & Reporting: Generate insightful reports on portfolio performance, track key metrics, and identify trends.
• Portfolio Monitoring & Analysis: Gain real-time visibility into your portfolio, identify potential risks and opportunities.
• Investor Relations & Communication: Facilitate efficient communication and reporting with investors.

What is iLevel’s Unique Value Proposition?

iLevel's core strength lies in its focus on the complexities of alternative investments. It offers industry-specific features and functionalities that cater to the unique needs of private equity, venture capital, real estate, and other alternative asset classes.

How Much Does iLevel Cost?

iLevel's pricing structure is not publicly available. However, federated market data suggest costs start at $36,000 annually, with minimal numbers of users, managed investments, features, deployment options, etc. Additional users are generally added at $900 per user per month ($10,800 per annum) absent volume discounts and other potential commercial incentives and/or negotiated concessions.

Who are iLevel’s Top Competitors?

Pro Tip #1: Benchmarking Costs:

Don't be afraid to leverage your existing iLevel usage data to negotiate with competitors. Highlight the value you represent as a customer and inquire about incentives for competitive displacement and/or volume discounts. When contacting suppliers for quotes, highlight any existing software usage or competitor quotes you might already have. This information can strengthen your negotiation position and potentially lead to better offers.

Market Share:

While precise market share figures are difficult to pinpoint, industry reports suggest iLevel holds a significant share in the alternative investment portfolio management software space. However, established players like eFront maintain a strong presence in the broader portfolio management arena.

Negotiating an Optimized Deal with iLevel:

Here are 5 top tips to negotiate a favorable deal with iLevel:

1. Understand Your Needs: Clearly define your specific functionalities, modalities, and user quantities and requirements. This strengthens your negotiation position.
2. Research Alternatives: Explore competitive offerings and pricing structures. This knowledge empowers you to leverage the market and potential competition for better commercial terms.
3. Leverage Existing Data: If you have historical usage data, demonstrate it to iLevel to negotiate based on actual needs rather than on prospective demand.
4. Consider Contract Length: Absent significant concessions for agreeing to a multi-year deal, negotiate a shorter contract term to maintain flexibility as your needs evolve.
5. Explore Bundled Services: Inquire about bundled packages that might include training or data migration services at a discounted rate.

Pro Tip #2: Gather Leverage:

If you're considering switching to a competitor, be upfront with iLevel. Use the competitor's quote details as leverage to potentially secure a better deal.

Challenges and Considerations of Switching:

Switching portfolio management software involves costs and considerations:

• Data Migration Fees: Suppliers might charge fees to migrate your historical data to the new platform.
• Training Costs: Beyond any actual costs of training, there will be a learning curve for your team on the new platform.
• Integration Challenges: Ensure the new platform integrates seamlessly with your existing financial tools.

Are There Any Free Alternatives?

Free solutions like PortfolioShop exist, but they typically cater to basic portfolio tracking needs. For robust functionalities, a paid solution is likely necessary.

Pro Tip #3: Explore Freemium Options:

Some competitors offer freemium plans with limited features. These can be a good option for basic needs while offering a taste of the platform before committing to a paid plan.

Summary:

iLevel remains a dominant player in the alternative investment portfolio management software space. It offers robust features, industry-specific functionalities, and streamlined data management. However, the lack of publicly available pricing and a potentially slow development cycle can be drawbacks.

Conclusion:

Choosing the right portfolio management software necessitates careful consideration. By understanding iLevel's strengths, limitations, and competitor landscape, you can make an informed decision. Leverage the insights and negotiation tips in this blog to optimize your investment in portfolio management solutions.

Pro Tip #4: Conduct a Pilot Program:

If considering a competitor, run a pilot program with a small user group to test the new platform before a full-scale rollout. This helps identify any challenges and ensures a smooth transition.

Pro Tip #5: Re-evaluate Regularly:

Your portfolio management needs might evolve over time. Don't be afraid to re-evaluate your software solution every few years to ensure it aligns with your current and future requirements.

Call to Action

NET(net) can help you maximize your savings and value on all your IT spend categories, including your portfolio management software, so Act Now.

About the Author

Steven C. Zolman is a leading expert in technology investment optimization and the founder, owner, and executive chairman of NET(net), Inc., the world's leading technology investment optimization firm. With over 30 years of industry experience, Mr. Zolman has helped client organizations of all sizes maximize the value of their technology investments by minimizing cost and risk and maximizing the realization of value and benefit.

About NET(net)

Founded in 2002, NET(net) is the world’s leading IT Investment Optimization firm, helping clients find, get, and keep more economic and strategic value in their technology supply chains. Over the last 20 years, NET(net) has influenced trillions of investment, captured hundreds of billions of value, and has helped clients cost and value optimize all major areas of IT Spend, including XaaS, Cloud, Hardware, Software, Services, Healthcare, Outsourcing, Infrastructure, and Telecommunications, among others. NET(net) has the experience you want, demonstrates the expertise that you need, and delivers the performance you demand and deserve. Contact us at info@netnetweb.com, visit us online at www.netnetweb.com, or call us at +1 (616) 546-3100 to see if we can help you capture more value in your IT investments, agreements, deployments, and relationships.

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