The alternative asset class lacks a standardized common identifier, according to Sia Partners in a recent report.
The findings of this challenge in a common identifier include:
Inefficient communication and information exchange among third parties due to the inability to match assets (market data providers, fund administrators, custodians, distributors).
Impediments to asset transfers, client reporting, redemption processing, capital calls and distributions.
Difficulty aggregating multiple data sources and challenges with data warehousing. Challenges stemming from inconsistent data coverage: pricing data, risk analytics, asset attribute data, and issuer data, among others.