I have tested numerous private equity CRM software options over decades, carefully noting which ones are useful and which don’t meet industry standards.
Choosing the right CRM for private equity firms may seem routine, but it is much more than that.
Portfolio companies must take considerable time to weigh the pros and cons of customer relationship management tools because switching CRMs mid-year is a hassle.
Each CRM system on this list has been personally tested by myself and the Small Business Bonfire team, so you can trust you are getting an unbiased opinion!
What is a Private Equity CRM Software?
At its core, private equity CRM software is designed to help firms manage customer relationships.
It allows you to track your customers’ interactions with your company.
With the right CRM system, private equity firms can streamline their sales process, maximize efficiency and ROI, and better engage with clients.
Some of the features available in private equity CRM software include the following:
- Sales automation
- Customer segmentation
- Lead tracking and scoring
- Pipeline management
- Mobile access
- Reporting capabilities
As you can see, having the right private equity CRM software in place can significantly impact your sales process and bottom line.
Why Should Private Equity Firms Use a CRM?
Private equity firms should incorporate CRM into their business models for many reasons.
Let’s take an in-depth look at each of these reasons!
Better Data Management
With a CRM, private equity firms can manage customer data more effectively.
Data management includes:
- Tracking customer interactions and leads.
- Segmenting customers for targeted marketing campaigns.
- Analyzing customer trends.
Additionally, keeping information organized ensures employees know about everything going on with specific hedge funds, capital markets, and limited partners.
Better Deal Management
Having a CRM system in place also helps with better deal management.
Private equity firms can track each process stage from pitch to close and set specific goals for their team.
This way, they can ensure that all deals are managed efficiently and effectively, leading to tremendous success.
Automated Follow Ups
One of the best features of private equity CRM software is automated follow-ups.
With this feature, firms can stay on top of customer relationships and ensure all potential deals are followed up on time.
Automatic follow-ups save team members time and energy, freeing them to focus on other tasks.
For example, automation can schedule weekly investment meetings to discuss alternative investment platforms without an employee.
Most CRMs have native integrations that include automation, so ensure you do your due diligence and find a program with this helpful feature.
Better Team Collaboration
A CRM system makes building a successful work team and relationship intelligence easier.
CRMs allow teams to keep track of customer interactions, share notes, and manage tasks collaboratively without putting data in a precarious position.
Collaboration efforts eliminate the need for cumbersome emails and paperwork, effectively saving time and improving team productivity.
Best CRM For Private Equity Firms
Every year, the best private equity CRM tools change.
Therefore, this list is continually updated to consider changes in price points, pros and cons, relationship intelligence tools, and key features.
Here is the list of the leading CRM for private equity firms in 2023!
HubSpot is a cloud-based CRM solution that helps companies track and nurture leads, organize contact management data, and analyze data points.
Additionally, HubSpot has solutions for business development, creative marketing methods, email tracking, and investor relations.
HubSpot functions efficiently and is visually appealing, explaining why the program continually ranks at the top of our list of the best CRMs available.
Why We Picked It
HubSpot provides real-time updates on all data analytics.
This CRM platform can track customer interactions via email and social media throughout the sales funnel.
That way, investors gain a clearer picture of a client’s overall deal flow.
Pricing
HubSpot offers users a free plan and three different subscription plans at monthly or annual rates.
These are the annual plans they provide to users:
- Free Tools: $0
- Starter: $18 per month
- Professional: $800 per month
- Enterprise: $3,600 per month
Pros
- Easy for managing directors and only employees to learn how to use
- Workflow automation
- It gives users a clear picture of data sources and the deal pipeline
Cons
- More introduction tutorials would be helpful
- Customer support could improve
Affinity can help a private equity firm analyze millions of data entry points and pick out a path that connects the company with the people or firms that are most important.
Also, Affinity is a private equity CRMs that allows users to monitor fund managers, asset managers, and other employees.
Why We Picked It
Affinity provides excellent CRM solutions that make team communication more accessible and streamlined.
Affinity also offers a virtual 360-degree Rolodex with complete client information, eliminating excessive communication and saving time.
Further, users can quickly identify critical relationships, manage follow-ups, and receive instant updates related to the portfolio performance pipeline.
Affinity streamlines deal pipelines and help users make data-driven decisions.
Pricing
Affinity offers first-time users a free service demo before committing to purchasing.
However, private equity professionals must contact an Affinity team member for more pricing information.
Pros
- Personalized data enrichment
- Keeps the entire organization on the same page and ensures nothing falls through the cracks
- Everything is customizable
Cons
- Some users end up using only some of the available data.
- Hard to integrate some third-party integration tools (like Microsoft Dynamics)
- Some users find the customization overwhelming and too time-consuming
Zoho is a popular CRM platform for several industries, including portfolio managers, private equity investors, and limited partners.
With Zoho, users can convert more leads quickly, grow revenue, and improve portfolio management and organization.
Why We Picked It
Zoho is one of the top private equity CRMs because it is suitable for any sized company.
That said, Zoho offers a free version of its services, perfect for small-scale private equity investors.
However, Zoho has industry-leading customization and integrations for a larger private equity firm with over 500 third-party data providers, investment management tools, and more.
Pricing
Zoho offers users four different pricing plan options at monthly and annual rates.
The annual plans Zoho provide include the following:
- Standard: $14 per user per month
- Professional: $23 per user per month
- Enterprise: $40 per user per month
- Ultimate: $52 per user per month
Pros
- Minimal learning curve
- Intuitive UX
- Most integrations are easy to implement
Cons
- Customizing email templates can be challenging.
- The workflow feature needs to be simplified and updated.
Salesforce is a purpose-built CRM solution for private equity firms, venture capital, and other industries.
Salesforce is an industry-leading platform that is best for large-scale firms that need automation, custom reporting, and seamless integrations.
Why We Picked It
Salesforce offers the highest level of customization compared to other CRM solutions for PE firms.
Additionally, Salesforce has lead management tools, in-depth data reports, automation, and effective marketing solutions.
Businesses that want all information and workflows in the same system would benefit from Salesforce greatly.
Pricing
Salesforce customizes price points based on the features each customer needs.
Therefore, you must contact the Salesforce team to inquire about pricing.
Pros
- Marketing products automate the customer journey
- Improves investor relationship management
- Incredible customization
Cons
- No free version
- It can be hard to integrate into existing systems
- Not suited for small venture capital and private equity firms.
Altvia is designed for alternative investment firms and is built on Salesforce.
Therefore, Altvia provides immense customization options to help manage investor relations, streamline investment processes, and identify potential investments.
Altvia is explicitly built for alternative solutions, redefining the relationship between portfolio managers, GPs, and LPs.
Why We Picked It
Altvia offers a comprehensive solution for alternative firms that specialize in investment management.
With Altvia, deal sourcing, managing investor relations, delivering relationship intelligence, and ensuring compliance are incredibly simple.
Still, potential users must do their due diligence before investing in Altvia.
Since Salesforce powers the program, it can be out of the price range for many firms.
Pricing
Altvia customizes pricing based on the firm in question.
Therefore, users must schedule a free demo and consultation appointment with the Altivia team to receive a monthly quote.
Pros
- Excellent investment analysis
- All of a business's required data is in one place
- Helps build fundraising and investor relations
Cons
- There isn't a long-term demo version.
- It can be pricey for smaller firms and exceed business needs.
DealCloud helps businesses in multiple industries streamline and modernize their business.
The program is designed to help investors with manager tracking, deal pipeline management, and organizing data.
Why We Picked It
DealCloud helps build a single source of truth.
A single source of truth aggregates data from several external solutions into a single location.
Therefore, asset classes are better organized, data entry is streamlined, and investors don’t have to worry about finding information in numerous places.
Pricing
DealCloud builds custom plans around the needs of investors.
Therefore, potential clients must contact a DealCloud representative for a monthly quote.
Also, DealCloud offers a free demo of any product customers want to learn more about their services.
Pros
- User adoption is simple and easy to navigate
- Improves deal pipeline database
- Users can customize different fields for specific data or private equity funds.
Cons
- Email marketing platform could improve.
Conclusion
Choosing the right CRM for private equity firms can be an overwhelming task.
However, with this comprehensive list and detailed information on each software solution, you should have all the knowledge you need to make an informed decision.
Whether you’re looking for a powerful sales automation tool or a comprehensive customer relationship management solution, this list has all of the best CRM software for private equity firms in 2023!
However, make sure to consider each option and find the solution that meets your firm’s needs before deciding on a platform to get the most out of your CRM.
Frequently Asked Questions
VC firms use a variety of CRM solutions, including HubSpot, Affinity, Zoho, Salesforce, Altvia, and DealCloud. Each of these software solutions offers its own unique set of features and pricing options.
The number one CRM is Salesforce Customer 360. Every year, Salesforce leads the industry because it offers powerful CRM capabilities best suited for large-scale companies looking to organize data, generate more customers, and automate daily tasks that take too much time.
Operational, Analytical, and Collaborative CRM are the three types of CRM systems. Operational CRM focuses on managing customer interactions, Analytical CRM helps firms target campaigns with deeper insights into customer trends and behavior, and Collaborative CRM allows teams to collaborate more efficiently.
Salesforce, the industry standard for customer relationship management needs, powers PwC, indicating how reliable Salesforce is as a CRM.
Deloitte uses Salesforce for the company’s CRM needs.