Treasury Management System Selection and Implementation: Strategic Insights for Private Markets Firms

Strategic Considerations & Best Practices 

1. What are the key factors private markets firms should consider when selecting a Treasury Management System?

Selecting a Treasury Management System (TMS) is a strategic decision that goes well beyond comparing feature lists or addressing shortterm operational pain points. For private markets firms, the evaluation should begin with a clear understanding of operational complexity. This includes not only the number of funds under management, but also the diversity of strategies, the underlying legal entity structures, and the frequency and scale of capital calls, distributions, and investment activity flowing through those structures. The more event-driven and bespoke the cash flows, the more critical it is that the TMS is designed for that environment. 

Banking connectivity is another foundational consideration. Private markets firms often operate across multiple jurisdictions and maintain relationships with a wide range of banking partners. A TMS must be able to support this complexity while providing consistent visibility and control. Without strong, proven connectivity, treasury teams are forced to rely on manual processes and reconciliations that increase operational risk. 

Integration is equally important. A TMS should sit at the centre of the firm’s financial ecosystem, integrating seamlessly with fund accounting systems, ERP platforms, and banking partners. When these integrations are weak or incomplete, firms often find that the TMS creates as many issues as it resolves. Many private markets firms invest in a TMS specifically to reduce spreadsheet dependency; this objective can only be achieved when data flows are automated and reliable. 

Scalability should also be a key part of the selection process. Most firms considering a TMS are in growth mode – launching new funds, expanding into new asset classes, or entering new geographies. A system that works well at five funds, must scale to fifteen or fifty, without requiring a fundamental redesign or significant additional headcount. 

Finally, firms should carefully assess the vendor’s experience with alternative asset managers. General corporate treasury systems are built around predictable cash flows and relatively simple entity structures. In private markets, where cash flows are irregular and structures are complex, those assumptions quickly break down. Vendors with deep alternatives expertise are far better positioned to support these realities. 

2. How can a TMS be tailored to meet the unique needs of private markets firms, given their complex fund structures and cash flow dynamics?

Private markets treasury is structurally different from corporate treasury, and a TMS must be configured to reflect that reality from day one. At a foundational level, this means creating a legal entity hierarchy that mirrors the firm’s actual fund, SPV, and investment structures. This is essential for ensuring accurate cash visibility, appropriate controls, and meaningful reporting. 

Cash positioning and forecasting should be available at the individual fund and entity level, not just on a consolidated basis. Treasury teams need to understand liquidity in the context of upcoming capital calls, distributions, investment closings, and operating expenses. A well-configured TMS enables this level of insight. 

Workflow automation and controls are another critical area of configuration. Capital calls, distributions, intercompany funding, and payments should all be supported by structured workflows with defined approvals, segregation of duties, and full audit trails. This not only improves efficiency but also strengthens governance and reduces operational risk. 

For private credit managers, the requirements are even more nuanced. Revolving credit facilities, portfolio company cash sweeps, and frequent drawdowns introduce additional layers of complexity. In these cases, a robust TMS should provide detailed debt management functionality, including realtime visibility into facility utilisation, interest accruals, covenant compliance, and available headroom. This level of transparency is essential for informed decision-making and effective risk management. 

3. What best practices should firms follow to ensure a smooth and successful TMS implementation?

A successful TMS implementation starts with a rigorous scoping exercise. Firms should take the time to document their current treasury operating model in detail, including processes, data sources, controls, and known pain points. This creates a clear baseline from which to define the futurestate vision and ensures that the selected TMS is aligned with actual business needs. 

It is also important to be explicit about scope. Clearly defining what will be delivered in the initial phase – and what will be deferred – helps manage expectations and reduces the risk of delays or cost overruns. Many firms find it beneficial to prioritise high-impact use cases early, such as cash visibility, bank connectivity, or payment controls, before expanding into more advanced functionality. 

Identifying all relevant data sources early in the process is another critical best practice. While banks and money market platforms provide visibility into current balances, accurate forecasting and decision support depend on integrating ERP systems, fund accounting platforms, and subscription line facilities. Without these integrations, firms risk implementing a system that looks comprehensive but lacks the data required to support meaningful insights. 

Finally, firms should treat TMS implementation as a change management initiative. Early engagement with end users, clear ownership of decisions, and well defined success metrics all contribute to stronger adoption and faster realisation of value post golive. 

Implementation Challenges & Lessons Learned 

4. What are some of the most common pitfalls firms encounter during a TMS implementation, and how can these be avoided? 

One of the most common pitfalls is attempting to deliver the entire target operating model in a single implementation phase. While it is important to have a clear long-term vision, firms are typically more successful when they break the journey into manageable phases. This approach allows teams to deliver value early, build internal capability, and incorporate lessons learned into subsequent phases. 

Another frequent issue is viewing the TMS primarily as a reporting tool. In practice, a TMS should sit at the centre of treasury operations, driving workflows rather than simply documenting them. Forecasting and liquidity analysis should feed directly into funding decisions, payment execution, and risk controls, all supported by the approvals and audit trails embedded within the system. 

Firms can avoid these pitfalls by maintaining a strong focus on business outcomes rather than technical deliverables. Regular check-ins against the original objectives help ensure the implementation stays aligned with strategic goals. 

5. From your experience, what aspects of a firm’s treasury operations are often underestimated in the implementation phase?

Bank connectivity is frequently underestimated. Firms often assume that connecting to banking partners will be straightforward, but differences in regional standards, file formats, and security requirements can introduce unexpected complexity – particularly for firms operating globally. Selecting a TMS with proven experience across markets can significantly reduce these challenges. 

The complexity of legal entity structures is another area where firms are often surprised. What appears manageable on an organisational chart can become far more intricate when mapped into payment workflows, approval hierarchies, and funding structures within a TMS. Taking the time to fully understand and document these relationships is critical. 

Subscription line management is also commonly underestimated. Many firms manage these facilities manually today, and migrating them into a system requires careful consideration of historical data, including FX rates and interest calculations, to ensure continuity and accuracy. 

6. What role should senior leadership and other key stakeholders play to ensure a successful TMS rollout?

Senior leadership sponsorship is not optional – it is genuinely determinative of outcomes. Active engagement from the CFO, Treasurer, or other senior stakeholders helps ensure the project receives appropriate priority, funding, and resources. 

Leadership involvement is particularly important during key stages of the project, including initial scoping, project kickoff, and user acceptance testing. Their support helps resolve cross-functional issues, reinforce the importance of adoption, and signal that the TMS is a strategic investment rather than a tactical system change. 

Final Advice 

7. What advice would you give to a private markets firm embarking on a TMS implementation for the first time?

Take the time to get the foundations right before selecting a vendor or embarking on a broader treasury transformation. This includes understanding your current processes, defining your future state vision, and being realistic about what you want to achieve in the first phase. 

Many firms underestimate what a modern TMS can deliver – not just in terms of operational efficiency, but also in strengthening controls, improving liquidity visibility, and reducing risk. A thoughtful, well planned approach at the outset sets the stage for longterm success. 

8. If you could offer one piece of advice to a CFO or Treasury Director about maximizing the value of their TMS investment, what would it be?

Recognise that your TMS will become an integral part of daily treasury workflows, not just a reporting layer. To maximise value, it is critical to choose a vendor with deep subject matter expertise in capital markets and alternative investment firms. 

That expertise translates into faster implementations, more relevant functionality, and a solution that continues to evolve alongside the business – ensuring the TMS remains a strategic asset rather than a static system.