In recent years, limited partners (LPs) have placed growing importance on the back office operations of their general partners (GPs). This shift is not just a passing trend – it’s an essential evolution in how LPs are ensuring that their investments are managed efficiently, with a particular focus on regulatory compliance, cybersecurity, and the quality of financial reporting.
For those involved in commercial real estate (CRE) asset management, this increased scrutiny has major implications.
Why LPs are paying closer attention to back office functions
LPs, who were traditionally focused on investment strategies and portfolio performance, are now delving deeper into the back office operations of their GPs. According to the Private Funds CFO Insights 2025 report, more than 60% of LPs are closely scrutinizing how GPs manage internal processes, with a particular emphasis on valuation policies, compliance, and cybersecurity. These areas are crucial to ensuring that firms operate with high efficiency and that the data underlying investment decisions remains secure and reliable.
The growing complexity of regulatory frameworks and increasing cybersecurity risks are driving LPs to demand more from their GPs in these areas. LPs want to ensure that the data they rely on is accurate, timely, and properly managed – and they expect GPs to meet these high standards.
How this impacts CRE asset management
For commercial real estate CFOs, this heightened scrutiny means back office operations are now integral to the investment process. LPs are looking for precise, timely, and standardized data reporting, making it essential for asset managers to implement robust data management systems that can meet these evolving demands. For example, Pereview enables asset managers to meet these expectations by providing seamless data integration, real-time reporting, and data validation tools and services that ensure the highest standards of accuracy and timeliness.
Failure to meet LP demands for transparency and compliance could result in lost investor confidence, and ultimately, missed opportunities. By leveraging a platform like Pereview, CRE asset managers can address these demands head-on with a centralized platform that supports data integrity, enhances operational efficiency, and ensures full regulatory compliance.
The need for stronger internal controls and outsourcing solutions
To meet the increasing scrutiny from LPs, many commercial real estate firms are turning to outsourcing for critical back office functions like fund accounting, compliance, and IT management. Leveraging third-party expertise helps asset managers provide the scalability and sophistication that LPs expect, without overburdening their internal teams.
At the same time, technology plays a central role in enabling efficient data management, real-time reporting, and enhanced transparency. Pereview supports firms in streamlining these operations, enabling them to easily manage data flows, enhance collaboration, and meet complex reporting requirements. By combining these robust back office functions with advanced technology, CRE firms can meet LP expectations while maintaining a competitive edge in the market. igned to help firms go beyond what’s possible with technology alone, delivering outcomes that matter.
A new era in commercial real estate asset management
As LPs continue to scrutinize back office operations, CRE asset management firms must ensure that their internal systems are robust, secure, and compliant with regulatory standards. The future of successful commercial real estate asset management will depend not only on investment strategies but also on the operational efficiency, transparency, and security of back office functions.
By adopting technology solutions like Pereview that offer data integration, real-time reporting, and validation capabilities, firms can build trust with their LPs, strengthen their operational frameworks, and ensure long-term success.
In this new era of increased scrutiny and technological advancement, embracing these changes will allow CRE asset management firms to thrive in an increasingly competitive and complex environment.
