Simplifying workflows through smart design and automation can cut costs and future-proof private asset management in a shifting investor landscape.
For decades, private equity thrived on inefficiency. Firms operated with manual processes, fragmented systems, and generous fee structures. There was little urgency to modernize because the investors were large institutions, the relationships were long-term, and the returns were strong enough to cover the cracks.
That era is coming to an end.
A new investor class with new expectations
Alternative asset managers are now facing a broader, more diverse investor base. Sophisticated family offices, high-net-worth individuals, and, increasingly, retail investors through Eltif 2.0 are entering the market. These investors are digital natives. They use neobanks for their daily finances and fintech apps for public market exposure. They expect immediacy, transparency, and seamless digital experiences.
The gap between what private equity offers and what these investors are used to is becoming impossible to ignore.
Time for form to follow function
The industry needs a structural redesign, not a surface-level upgrade. Just as the Bauhaus movement redefined design by insisting that form must serve function, private asset managers must rethink their operational architecture. Reporting, onboarding, and capital flows should be designed with the investor in mind. That means fewer PDFs, fewer portals, and fewer manual interventions.
Instead, workflows must become integrated, intuitive, and scalable.
Cutting complexity cuts cost
The more fundamental issue is not just user experience, but cost. The current model is bloated, expensive, and increasingly out of sync with what modern technology can achieve. By applying the Bauhaus philosophy of simplification, the entire fund administration workflow can be reimagined. Tasks that today require armies of operations staff, accountants, and middle-office intermediaries could be streamlined through automation.
“The Bauhaus school was not just about aesthetics. It was a philosophy of clarity, purpose, and usability. Private equity needs its own version of that moment.”
With the right architecture, AI and large language models can assist with data extraction, investor communication, and even elements of compliance. That does not mean asset managers need AI experts. But it does mean their CFOs and COOs should become experts in process design and digital efficiency.
The result is not only a better experience but a radically lower cost base, with savings that can be passed on to both the manager and the investor.
The redesign moment has arrived
The Bauhaus school was not just about aesthetics. It was a philosophy of clarity, purpose, and usability. Private equity needs its own version of that moment. A bold rethinking of how capital is managed, how investors are engaged, and how systems are built to support both.
Those who lead this shift will not only survive the next era of private markets. They will define it.
Christophe Santer is a columnist for Investment Officer Luxembourg. A Luxembourg native, Santer has nearly two decades of experience in fund administration, investor services, and private markets. He also works as director of business development manager at bunch.