Finance leaders in private capital are navigating a challenging environment with higher-for-longer interest rates, extended hold periods, slower fundraising, and rising transparency demands while also being asked to do more with advancing technology. Our team recently attended the Informa SuperReturn CFO/COO North America Conference in Chicago, where we heard several consistent themes from finance, operations, compliance, and technology leaders. Among them: artificial intelligence is reshaping stakeholder expectations, but success still depends on strong data, disciplined execution, and operating models built for a more complex market environment.
AI Adoption: Data and Governance First
AI is no longer a question of if but how to apply it across diligence, reporting, and compliance. At the same time, speakers noted that fragmented and inconsistent data remains a major constraint. Strong data governance must precede technology investment, and AI outputs require rigorous validation before broader use. Regulators are also increasing scrutiny around AI (e.g., data security, auditability), making early guardrails and clearly defined use cases essential. Longer-term cost implications were also raised, particularly as firms consider how AI tools may be monetized over time in ways similar to other technology platforms.
A New Operating Environment
Another consistent theme was that higher rates, slower exits, and longer hold periods are forcing firms to rethink value creation. Speakers described fundraising cycles that have lengthened and consolidated among fewer managers, while liquidity dynamics continue to evolve through fund extensions and a more active secondary market. There was also a notable emphasis on realized performance metrics, including Distributed Paid in Capital (DPI), over projected Internal Rate of Return (IRR), underscoring how firms are adapting to a slower and more complex operating environment.
Transparency as a Differentiator
Transparency has become central to General Partners (GP) and Limited Partners (LP) relationships. Quarterly reporting is now expected, with growing demand for more frequent and tailored insights. Speakers discussed the tension this creates as firms work to meet rising disclosure expectations while managing internal processes and compliance requirements. Consistency and avoiding surprises were positioned as critical to maintaining trust, particularly as secondary markets increasingly rely on reported valuations.
Compliance as a Strategic Enabler
Compliance is increasingly being viewed not as a reactive, rules-based function, but as an embedded, proactive capability aligned with evolving SEC priorities. The SEC is increasingly focused on areas that materially impact investors, including conflicts of interest, the transparency and consistency of fee structures (particularly around economic/recurring expenses and affiliated service providers), and valuation practices. There is also heightened scrutiny on side-by-side management (e.g., Separately Managed Accounts (SMAs), hedge funds, and private funds), with particular attention to trade allocation fairness and potential conflicts across vehicles. In response, firms are integrating compliance more directly into daily operations, enhancing documentation, conducting mock exams, and strengthening governance frameworks to stay ahead of regulatory expectations. Collaboration with regulators and industry peers is also increasing, as compliance is now viewed not just as a control function, but as a driver of investor confidence, credibility, and long-term stability.
Operating Model Transformation
Firms are rethinking operating models around data, talent, and technology. Many are addressing fragmented systems and revisiting past technology investments to better align with business outcomes. The CFO role is expanding into a strategic leader for data and decision making. At the same time, outsourcing routine tasks enables teams to focus on higher-value work. Talent strategies are evolving to emphasize critical thinking, adaptability, and continuous learning amid growing AI adoption. Institutional knowledge still relies heavily on individuals to retain deal history, valuation rationale and portfolio insights requiring better documentation, standardized processes and enabling systems across the investment lifecycle.
Closing Observations
The conversations at SuperReturn reinforced that private markets are at an inflection point where market pressures, technology, and stakeholder expectations are converging. Firms best positioned to succeed will be those that combine disciplined execution with strong data foundations, effective processes, and greater transparency. The conference also underscored the increasingly central role finance leaders play in value creation and the need for talent models that prioritize curiosity, critical thinking, and adaptability.
