Survey: Majority of Private Equity, Venture Capital Fund Accountants Predict Tech Revamps in 2025

Dynamo Frontline Insight Report Finds ALTS Fund Accountants Bullish on Influence of AI, Automation, and Analytics on Industry

Survey: Majority of Private Equity, Venture Capital Fund Accountants Predict Tech Revamps in 2025

MEDIA
Nicole Selinger
nicole@kmprcollective.com
314-805-2165

Findings released today from a global Dynamo Software survey provide insight into the growing influence of technology in reshaping the private equity and venture capital fund accounting profession. The report, which explores the opportunities and challenges driving transformation in the field, takes its deepest dive into three key trends:

Rising influence of automation and AI
Data flow, reporting systems integration becomes critical
Uncertainty around ESG reporting requirements

Dynamo Frontline Insight Report: Trends, Challenges, and Insights from Leading PE/VC Fund Accountants draws on survey data collected within the past eight weeks, offering a near real-time perspective on emerging trends.

Rising influence of automation and AI

Seven in 10 fund accountants said the “shift toward automation and AI adoption” is the top industry trend they expect to gain momentum in 2025. About as many (61%) agreed with the statement “Automation and AI will play a major role in fund accounting.” Another 34% said that the technologies would “increase somewhat but would not be a game changer.” Notably, 5% anticipate “no significant reliance on automation and AI” over the next 12 months.

“The complexity of ALTS fund accounting presents compelling, but nuanced, use case for technology,” said Nield Montgomery, Dynamo Software managing director. “Fund accountants clearly see the opportunity to simplify complexity, reduce manual tasks, and flag irregularities, which frees time for strategic analysis. At the same, human oversight is still very much needed to interpret complicated financial data, ensure compliance, and inform strategic investing decisions. We believe the importance of human expertise in this field of accounting explains why a percentage of respondents shared uncertainty about how transformative technology will be this year.”

A majority of respondents ranked time-consuming reporting processes (64%) and manual data entry and reconciliation (61%) as the top challenges faced by fund accountants today. Additionally, 45% of respondents are seeking enhanced features to manage complex transactions, and 39% reported a need for automated compliance monitoring.

Data flow, reporting systems integration becomes critical

Six in 10 fund accountants selected “enhanced reporting and analytics requirements” as a top industry trend they expect to gain momentum in 2025. This expectation aligns with other key findings: a significant percentage (41%) cite keeping up with regulatory changes as a top challenge, and 70% say software integration between systems is essential to their workflow.

“As reporting demands grow more complex, seamless data flow between platforms becomes critical for accuracy, efficiency, and compliance,” said Montgomery. “Without the ability for systems like CRM and analytics platforms to talk to one another, meeting heightened reporting standards will become increasingly cumbersome.”

A lack of system integration was cited as a top challenge to the fund accounting workflow by 56% of Dynamo survey participants. As follows, nearly 60% of professionals said integration with other platforms was a top feature lacking in their current software that they wish was available.

Uncertainty around ESG reporting requirements

Participants were split on how changes to environmental, social and governance (ESG) reporting may affect their work in 2025. While 45% expect minimal to no impact, 49% anticipated there could be substantial impact. Thirty-nine percent said ESG reporting changes would require new systems and processes, and another 10% said they anticipate significant additional workload (10%).

“ESG reporting is in flux and without industry standards, it often varies from fund to fund and from investor to investor,” Montgomery explained. “That can make it difficult to predict how changes will impact workflows and the technology supporting them. The evolving nature of ESG expectations is one of many reasons it’s crucial for fund accountants to have access to configurable reporting platforms that can flex based on the needs of the firm, the fund or the investors they are reporting to.”

To that point, 66% of survey participants said they prefer configurable software solutions to standardized products with out-of-the-box capabilities.

Additional FinTech findings

The Frontline Insight report contextualizes many other survey findings regarding fund accountants’ sentiment around technology, including the highlighted takeaways below. Charts and graphs for each of the report’s findings are available by contacting media@dynamosoftware.com.

The data security of software solutions was characterized as “extremely important” by nearly 80% of fund accountants.
Improved reporting and analytics was the most cited priority for fund accounting software, followed closely by enhanced automation for routine tasks and robust compliance monitoring.
More than half (54%) named real-time reporting as a key feature lacking in their current software; nearly half (47%) of respondents named advanced data visualization tools.

About Dynamo’s Frontline Insight Reports

Published quarterly, Dynamo’s Frontline Insight Reports contain primary research obtained through online surveys of targeted alternative investor audiences. The survey results are contextualized by Dynamo subject matter experts in formal Frontline research reports. To date, Dynamo’s research team has focused on delivering noteworthy insights related to the attitudes, predictions, and strategic plans that Limited Partners (LPs), General Partners (GPs), Hedge Funds, Emerging Managers, and Fund Accountants have on a number of alternative investment topics. To learn more about Dynamo’s research reports, visit the Resource Library or contact media@dynamosoftware.com.

About Dynamo Software, Inc.

Dynamo gives alternatives investors a Performance Edge, empowering them to efficiently scale their firm to capitalize on the growing wave of private market opportunities. With the Dynamo Alternative Investment Platform, Limited and General Partners can now run a tightly integrated firm, putting all their data to work to accelerate operations across front, middle, and back office, unleashing teams to work smarter, and allowing leaders to make better investment decisions and scale their firm. Dynamo has a global footprint with operations across North America, EMEA, APAC, and UAE. For more information, please visit DynamoSoftware.com.