Finding an Ally in Data Management

Introduction

In today's data-driven landscape, effective data management is no longer just a technical necessity; it is a strategic imperative for investment managers. The challenges posed by the increasing volume and complexity of data, along with evolving regulatory demands, have underscored the need for robust data management solutions. This blog series will explore these challenges, discuss current trends in data management, and delve into how S&P Global Market Intelligence EDM DMaaS (data management as a service) can help organizations navigate this complex landscape. We will kick off with a focus on recent trends in the data landscape and lead into a specialized discussion on DMaaS for private markets in our next post.

Highlighting the Issues

Increasing Volume and Complexity of Data

Investment managers are navigating an unprecedented data explosion that is reshaping how they operate. The global datasphere reached 200 zettabytes (ZB) in 2025, which is more than 6x larger than the volumes recorded in 2018 (33 ZB). This rapid expansion is projected to continue, with estimates indicating growth to 330 ZB by 2028, representing a compound annual growth rate (CAGR) of 18.1% during that period. By 2030, enterprise data alone is expected to exceed 400 ZB, driven by the accelerated adoption of AI and IoT technologies.

Source: Gartner, "Forecast: Enterprise Data Growth 2023-2030” (June 2025), Cisco Annual Internet Report (2025), IBM Data Paradox Study (Q2 2025)

This explosion of data brings with it significant complexity. Key drivers include:

1. Data Fragmentation: A staggering 73% of firms manage data across 10 or more systems (Deloitte 2025), which complicates data governance and integration efforts.

2. Real-Time Demands: As businesses strive to remain competitive, streaming data now accounts for 35% of analytical inputs, necessitating real-time processing and analysis.

3. Quality Burden: Data teams are spending 45% of their time reconciling inconsistent data formats, highlighting the urgent need for improved data quality management.

Trends in Private Markets

The private markets sector, which includes private equity, private debt, and other alternative investments, is experiencing significant growth. According to a report by McKinsey & Company, total assets under management (AUM) in private markets reached $12.1 trillion in 2024 and are projected to grow to $19 trillion by 2028, reflecting a compound annual growth rate (CAGR) of about 10%. This growth emphasizes the need for effective data management solutions, particularly as firms seek to gain a competitive edge.

Source: McKinsey & Company, "Global Private Equity Report 2023," McKinsey Report (accessed October 2023).

1. Mastering Data from Multiple Sources: Private markets firms deal with data from various sources, including portfolio companies and market research. The ability to aggregate and analyze this data is crucial for informed investment decisions.

2. Increased Scrutiny and Transparency: Investors demand greater transparency regarding private markets investments, prompting firms to adopt sophisticated data management solutions for real-time monitoring and reporting.

3. Leveraging Technology: The rise of advanced analytics and machine learning has transformed data analysis in private markets, enabling firms to uncover insights and optimize investment strategies.

Addressing the Lack of Expertise

The demand for skilled data professionals has surged, yet a notable shortage of expertise in data management, analytics, and governance persists. According to a report by LinkedIn, the average employee turnover rate in the tech industry is around 13.2%, and hiring and training new employees can cost organizations between 50% to 200% of an employee's annual salary.

While educational institutions have responded to the demand by offering more data science degrees, the financial services sector still faces a gap in expertise. Many graduates may possess theoretical knowledge but lack practical experience in applying data science principles to real-world financial scenarios. This mismatch highlights the need for organizations to invest in training and development programs to bridge the gap between academic learning and industry requirements.

1. Complexity of Data Systems: The rapid evolution of data technologies requires specialized knowledge, which many organizations struggle to find.

2. Evolving Regulations: With increasing focus on data privacy and compliance, organizations need experts who understand regulatory requirements to mitigate risks.

3. Integration of Diverse Data Sources: As organizations collect data from various sources, the need for expertise in data integration becomes critical.

Source: LinkedIn, "2020 Workplace Learning Report," LinkedIn Report (accessed October 2023).

Trends in Sustainable Impact Investing Data

The importance of sustainable impact investing factors in investment decision-making is more pronounced than ever, with global sustainable investment reaching approximately USD 30.3 trillion in 2022, up from USD 25.3 trillion in 2020. EMEA leads this space with USD 21.9 trillion, followed by the United States with USD 8.4 trillion. APAC (Japan, Australasia) is emerging as the fastest-growing region in assets under management (AUM) with a projected growth rate of approximately 22% from 2025 to 2030, reflecting a significant increase in sustainable impact adoption and investment.

1. These figures underscore a significant shift in investor priorities, with projections indicating that global sustainable impact investing AUM could reach USD 40 trillion by 2030. North America is expected to maintain a substantial share of approximately 38.7% of global sustainable impact investing revenue (~USD 11 trillion) in 2024, with a robust compound annual growth rate (CAGR) of around 19.7% during the same period.

2. As new issues arise—such as climate change, social justice, and corporate governance scandals—sustainable impact investing data will continue to adapt, incorporating new metrics that address these challenges. This fluidity in sustainable impact investment data not only enhances the investment landscape but also encourages companies to improve their practices, knowing that their performance will be scrutinized more closely than ever.

3. Investment managers must stay abreast of these developments, continually integrating new data points into their strategies to maintain a competitive edge and align with evolving investor expectations.

Source: Global Sustainable Investment Alliance gsi-alliance.org, DataHorizzon Research, Grand View Research, Cervicorn Consulting, Mordor Intelligence.

How Data Management as a Service Can Help

S&P Global Market Intelligence EDM DMaaS offers a solution to the challenges outlined above:

1. Access to Expertise: DMaaS employs teams of data experts, allowing organizations to leverage specialized knowledge without the overhead costs of hiring full-time staff.

1. Private Markets Entity Linking & Matching service: For an entire universe or private assets or via indications of interest, S&P Global Market Intelligence Private Market Entity Linking & Matching service allows firms to link private assets to public entities uncovering corporate hierarchies and financials allowing clients to master private asset data and make investment decisions faster and with more confidence.

2. Scalable Solutions: DMaaS can be tailored to meet specific needs, enabling organizations to augment their staff and scale their data management efforts as required.

3. Best-in-Class Software: DMaaS leverages best-in-class software, such as S&P Global’s Enterprise Data Management (EDM), to ensure high-quality data management and governance. This integration allows organizations to benefit from advanced tools and technologies that enhance data accuracy, compliance, and reporting capabilities.

4. Training and Support: DMaaS provides training and support services to work alongside organizations’ existing staff to build internal capabilities, empowering teams to manage their data more effectively.

5. Enhanced Compliance and Governance: DMaaS has established frameworks for data governance and compliance, helping organizations navigate regulatory landscapes.

6. Focus on Core Competencies: By outsourcing data management, organizations can focus on their core competencies and strategic initiatives, leading to improved efficiency and innovation.

Conclusion

The evolution of data management services is driven by the increasing volume and complexity of data, particularly in the realms of sustainable impact investing and private markets. As investment managers strive to harness the power of data, adopting robust data management practices is essential for integrating, analyzing, and reporting on diverse data sources effectively.

With the global data sphere projected to reach 330 zettabytes by 2028 and private markets assets expected to reach approximately $19 trillion, the imperative for effective data management has never been greater.

In our next blog post, we will dive deeper into the role of Data Management as a Service specifically for private markets firms, exploring how DMaaS can help these firms navigate their unique data challenges and drive competitive advantage. Stay tuned!