Highlights from the GAIM Ops West conference
Last month Bipsync sponsored and attended GAIM Ops West, a great opportunity to share ideas, discuss emerging challenges, and collectively strategize on advancing best practices with over 350 operations and compliance leaders across the alternative investment industry.
The Bipsync delegation felt right at home, with the statement “getting data to decision makers” being heard time and time again throughout the sessions.
Three dominant themes emerged from the presentations and panels: the growing significance of robust vendor management, the cautious but exciting rise of AI, and the persistent quest for seamless data accessibility.
The contributions from numerous COOs, CFOs, CCOs, General Counsels, and Heads of Operational Due Diligence (ODD) present at the event emphasize how these and other themes demand action and represent tangible agendas for change.
Emphasizing vendor management as a core operational pillar
Throughout the sessions, vendor management surfaced as a critical element of operational due diligence, underscoring its central role in supporting alternative investment operations. One COO of a West coast PE firm summarized the sentiment well, pointing out that effective vendor oversight helps firms maintain both operational and regulatory standards, commenting that “regulation drives technology.”
To achieve this, many firms are adopting more structured approaches to managing their vendor relationships. Creating centralized databases with detailed categorization and tagging is now seen as essential to organizing and analyzing vendor exposure, ensuring due diligence readiness, and enabling continuous monitoring. Likewise matching vendors with managers, portfolio companies, investments and other entities. These systems not only streamline vendor oversight but also build resilience into a firm’s operational framework, supporting an environment where regulatory compliance and operational efficiency can coexist.
As the complexity of vendor networks grows, many ops professionals are realizing the need to establish repeatable processes for ongoing monitoring of vendors, to analyze vendor exposure, better prepare for ODD meetings, and support consistent and comprehensive vendor evaluations.
Exploring AI in operational practices
Practically every event in 2024 has featured a big slice of AI and its potential applications. So no surprises that this was widely explored at GAIM Ops West, as attendees sought to understand how the booming technology can revolutionize data management without compromising security.
While the general sentiment among delegates was cautiously optimistic, the excitement for industry-specific AI tools was palpable, with a shared emphasis on taking a measured, orderly approach to implementation – ideally using a single, enterprise-grade tool for better control and monitoring. Many highlighted the importance of identifying core trade secrets before fully integrating AI into workflows, emphasizing the need to safeguard data from unintended exposure.
While firms are beginning to experiment with using AI to automate certain processes, like call transcription and data recording, plenty of challenges remain. Transcription and recording raise potential legal risks and data security issues, underlining the need for clear protocols about what data can be safely fed into AI systems. The consensus among attendees was that while AI holds great promise for boosting operational efficiency, it’s vital to proceed thoughtfully, with safeguards that prevent data from leaking or compromising compliance with industry standards.
Prioritizing data accessibility for decision making
Efficient data management was another recurring theme, as firms reported on their strategies for improving cross-team data sharing and decision making. Who could argue that making data accessible to decision makers in real time is more crucial than ever, with digital dashboards and audit trails emerging as essential tools for simplifying workflows. A General Counsel for a prominent investment manager made a compelling case for software solutions that reduce email reliance and enable in-app collaboration to enhance data accessibility across organizations.
Hedge fund ops teams and their COOs were just as passionate about breaking down traditional silos and enabling smoother collaboration across different strategies. The increasing need for transparent, real-time data-sharing mechanisms across teams is reshaping how firms handle information flows, while tools that streamline collaboration and enhance decision making capabilities are gaining traction as professionals recognize that robust data infrastructure is essential to adapting quickly in an ever-evolving industry.
GAIM Ops West proved a valuable space for professionals to discuss, debate, and share insights on pressing issues, offering practical strategies to tackle today’s complex operational landscape. Bipsync was honored to be part of these conversations, hearing first hand from industry leaders about the need for platforms like Bipsync RMS that are purpose-built to help the investment industry prioritize vendor oversight, seamless data access, and cutting-edge technology for swift, smart, and secure decision making.