Anyone still remember how to drive a stick shift? When automatic gearboxes emerged, they revolutionized how people drove - simplifying complex tasks and making transportation faster, easier, and more efficient.

Similarly, automation is transforming private markets by streamlining traditionally manual processes. In private markets, time is money. RIA firms, fund managers, and administrators face constant pressure to close funds quickly - which means ensuring investors are rapidly compliance-cleared - and maintain an exceptional client experience.

One major bottleneck (among others) in this process? Subscription documents. These complex forms are critical to private markets transactions but are notoriously time-consuming to prepare, populate, and execute. My first subscription document was done through pen and paper and mailed via FedEx for a client to fill out and sign. The entire process could take more than a week for each and every investment, even assuming the client moved quickly to complete the paperwork - and then assuming they filled it out correctly. Cue much frustration from clients.

Enter automation. Here at Opto, the typical week-plus process now takes an average of six minutes (and three seconds)1 through our software…

How?

The subscription document challenge

Subscription documents are detailed forms necessary to onboard investors into private markets funds. They collect critical information such as:

  • Investor information
  • Investor qualifications
  • Tax and entity classifications
  • Banking instructions

Manually populating these forms is a tedious and error-prone task. It often involves repetitive data entry, cross-referencing investor records, and reviewing for human mistakes that could lead to compliance risks or delays in closing.

Automation to the rescue

Automation simplifies this complex process by:

  1. Integrating Customer Relationship Management (CRM) systems
  2. Leveraging bulk data imports
  3. Digitizing the subscription document

1. CRM integration

Modern CRM systems like Salesforce store comprehensive investor information, from subscriber qualifications to banking instructions. By integrating subscription document workflows with CRM platforms, firms can eliminate the need for manual re-entry, minimizing errors and saving significant time, by:

  • Auto-populating investor details into subscription documents
  • Pulling pre-validated information directly from the CRM
  • Ensuring consistency across documents and records

2. Bulk data imports

When managing multiple investors simultaneously, bulk data imports are a game-changer. Firms can upload large datasets of investor information directly onto our platform. This method is especially useful when information is spread across different systems and time is an issue, given integrations can take months to build. Benefits include:

  • Efficiency: Populate subscription documents for hundreds of investors in minutes
  • Scalability: Easily handle large investor pools without increasing administrative workloads
  • Accuracy: Pre-validated data reduces the risk of errors and compliance issues

3. Digitization of subscription documents

Digitizing subscription documents builds upon CRM integrations and bulk data imports, elevating automation to the next level. The document becomes the artifact, not the task. Without digitization, neither of the other two processes would be possible.

By converting traditionally paper-based forms into interactive digital formats, firms can:

  • Utilize e-signatures for faster execution
  • Incorporate dynamic fields that adapt based on the investing entity
  • Track document progress in real-time to ensure timely completion
  • Send investor information directly to fund administrators via APIs
  • Store investor records securely and use them for future investments

The future of private markets automation

The integration of automation tools into private markets investing is just the beginning. A couple of innovations we plan to launch over the next year promise to drive even greater speed and accuracy:

  • AI-powered onboarding that creates investor profiles in minutes by scanning bank statements and tax forms
  • AI technology to extract anti-money laundering (AML) and Know Your Client (KYC) process information from Trust or LLC agreements

In a competitive and dynamic industry, automation isn’t just a convenience - it’s a necessity for staying ahead.

At Opto, we’re embracing the power of automation to unlock new levels of efficiency and scalability.

For disclaimers, visit https://www.optoinvest.com/disclaimers.

1 Source: Opto Investments internal data, covers a 30-day period ending December 19, 2024.