From Spreadsheets to Smart Systems: Modernizing the Alternative Investment Industry

At this year’s ADISA fall conference, VENTURE.co led a session titled “From Spreadsheets to Smart Systems.” The discussion was hosted by Aaron Pollak, CEO of VENTURE.co and Chair of the Technology and Operations Committee, alongside Mike Kell, Managing Director at iCapital. The session explored how technology is transforming the operational foundation of alternative investments and what firms can do today to position themselves for long-term efficiency and growth.

The conversation focused on the continued dependence on manual processes, the growing need for integration across systems, and the importance of cybersecurity as technology adoption accelerates. It highlighted the challenges facing both sponsors and wealth managers as the industry transitions from fragmented workflows to smarter, data-driven infrastructure.

The Shift from Manual Processes to Intelligent Systems

Alternative investments have traditionally operated through highly manual workflows. Subscription documents, investor records, and capital activity have long depended on spreadsheets and email exchanges. While these methods were once sufficient, they can no longer meet the demands of scale, transparency, and speed expected by today’s investors.

Modern systems have begun to bridge these gaps by centralizing data, automating calculations, and reducing the risk of human error. Yet true transformation depends on more than technology alone. Operational readiness and organizational buy-in determine whether firms can successfully evolve from basic digital tools to fully integrated platforms.

The hype cycle shows how emerging technologies in alternative investments progress from early excitement to widespread adoption and lasting value as systems mature.

Adoption as the Key to Progress

The success of new technology depends on widespread adoption across all levels of a firm. Many organizations implement modern tools but fail to embed them in everyday workflows, resulting in a return to manual habits. The firms that succeed treat technology implementation as a strategic initiative rather than a technical upgrade.

Achieving adoption requires consistent education, clear communication, and alignment between leadership, operations, and advisors. When technology is supported with training and structured rollout plans, it becomes part of a firm’s culture rather than an occasional process improvement.

Moving Beyond Point Solutions

The industry’s digital landscape has grown crowded with specialized point solutions. Each one addresses a single challenge such as document processing, investor onboarding, or reporting. When combined, they often create even greater complexity.

A sustainable technology strategy focuses on unifying these systems through a centralized platform. Consolidation allows firms to improve data accuracy, streamline workflows, and provide investors with a consistent experience from subscription through exit. Moving beyond point solutions enables firms to reduce operational burden and unlock greater visibility across the investment lifecycle.

The Role of the Advisor in Technology Transformation

Advisors are a critical link between technology and investor experience. Many firms design new systems without including the people who rely on them most. When advisors are involved early in the process, they can provide valuable insight into usability and help drive adoption firm-wide.

By incorporating advisor feedback, firms ensure that new tools genuinely simplify client interactions. A well-designed platform should make it easier to communicate, track investments, and deliver transparency. When advisors view technology as a benefit rather than a burden, it becomes a catalyst for broader organizational change.

Cybersecurity as an Operational Priority

The rise of smarter systems has introduced new operational risks. As data flows between multiple systems and counterparties, the potential for cyberattacks and data breaches increases. Protecting investor information must remain central to every technology decision.

System intrusions, social engineering, and web application attacks make up most financial and insurance data breaches, driven primarily by external, financially motivated actors. Source: 2025 Verizon Data Breach Investigations Report.

Email, once a standard method for sharing subscription documents or tax forms, is no longer secure enough for sensitive transactions. Firms are shifting to encrypted platforms that safeguard communications and maintain regulatory compliance. Strong cybersecurity practices not only prevent financial loss but also reinforce investor confidence in an increasingly digital environment.

Building a Smarter Foundation for Private Markets

The transition from spreadsheets to smart systems represents more than a technological upgrade. It is a fundamental shift in how alternative investment firms operate, collaborate, and serve investors.

As the industry moves toward integrated, data-driven platforms, firms that invest in adoption, advisor engagement, and cybersecurity will set the standard for the next generation of fund operations. Modernization is not simply about replacing outdated tools. It is about building a smarter foundation for growth, scalability, and trust in private markets.