UK-based financial data group Preqin has launched the Allocator Hub, which, the company says, is “a market-first, end-to-end platform that enables asset allocation, manager selection, due diligence and portfolio management through sophisticated investment analytics, workflow tools and managed services.

This offering is designed to support investors by driving better investment outcomes and streamlining costly, time-consuming investment processes.

The launch of the platform comes at a time when institutional alternatives allocations are projected to steadily grow over the long term, with an expanding investor base across institutional and retail investors worldwide. However, there remains a wide “transparency gap”, with private market data typified by the absence of standardized frameworks and having additional barriers to entry compared with public markets, the company notes.

As a result, operating an effective private market programme, the data provider points out, requires a high degree of expertise, headcount and a web of third-party consultants and vendors. For smaller investors, building a portfolio with diligence can be daunting and expensive. For those that are larger and more established, operating an investment programme at scale, while controlling total cost of ownership and maximizing analytical rigour and investment returns, can be a concern.

The platform addresses these challenges, the company shares, by putting actionable data and analytics in clients’ hands, while digitizing inefficient, often manual, investment processes. It allows investment professionals to accelerate market mapping, conduct efficient and thorough investment due diligence, benchmark fund performance against the market, create custom indices for more precise asset allocation and risk management workflows.

Available through the flagship platform, Preqin Pro, the solution leverages the full breadth of the data provider’s market intelligence, it states, “surfacing the right data, at the right time and in the right format to deliver actionable insights and optimal outcomes”.

“We believe the alternatives markets are at an inflection point,” adds Jonathon Furer, the company’s senior vice-president and head of limited partners. “Our research indicates the industry is on course to expand by almost 80% and is set to exceed US$30 trillion in assets under management by 2030 globally, up from US$16.8 trillion at the end of 2023.

“Yet, these markets have historically lacked standardized data, benchmarks and analytics, combined with highly manual investment processes, resulting in high operating costs. Preqin is on a mission to modernize private markets through increased digitization and by enabling intelligent pre- and post-investment processes.”