3 ways asset managers can streamline NDA management

April 27, 2023

High volumes of NDAs are a given for large investment banks and asset managers. Unfortunately, so are the drawbacks of traditional solutions for NDA management.

While many investment firms tap internal resources to handle routine legal work, these individuals often lack the bandwidth. Time spent handling NDAs comes at a cost as they take time away from mission-critical work. In some cases, business professionals handling NDAs may even lack the expertise required to effectively negotiate and manage these recurring agreements.

Other firms send routine legal work to traditional law firms. However, the work usually falls to junior associates with minimal experience while the firm charges their costly standard rates.

What can private markets firms do to effectively handle a high volume of buy- or sell-side NDAs? They can partner with an NDA outsourcing provider like Ontra, which combines artificial intelligence and a global network of independent lawyers.

3 ways to better manage private markets NDAs

1. Partner with a legal outsourcing provider

Outsourcing NDAs to a third party can be the fastest and most efficient way to handle these routine agreements. However, investment firms have to take precautions and engage the right kind of third party.

An alternative legal service provider can be an ideal option for NDAs and other recurring agreements. ALSPs offer a combination of purpose-built technology and services that enable them to perform a legal support function at a lower cost than traditional internal or external counsel. The four broad types of ALSPs are independent ALSPs like Ontra, the big four accounting firms, law firm’s subsidiary companies, and legal staffing agencies.

ALSPs can benefit investment firms by offering technology-enabled solutions, such as legal process automation, that reduce manual tasks and cut down on contract cycle times. With NDA automation, it’s possible to drastically cut down on turnaround times, enabling parties to access data rooms and perform due diligence sooner.

2. Leverage industry expertise

When an investment firm is making the decision to turn to an NDA outsourcing partner, it’s not enough to simply find a vendor capable of taking over the workload. Firms and their GCs have to carefully consider their options when choosing an ALSP. We recommend firms assess their internal needs in order to align with the right provider and identify an ALSP that can streamline onboarding with white-glove customer service.

Although sell- and buy-side NDAs are common agreements for corporate transactions, effective negotiations and NDA management still require industry expertise. Firms’ in-house legal teams should select an ALSP that offers access to highly skilled lawyers with relevant industry experience.

Ontra matches new Contract Automation customers with one or more independent lawyers. These professionals are dedicated to the firm, ensuring they get to know the customer’s contract playbook inside and out. Ontra has high standards for its Legal Network, and many of our in-network lawyers have in-depth industry and BigLaw experience.

3. Take advantage of contract automation

The ALSP should include best-in-class technology as part of its solution. Cloud-based platforms offering contract lifecycle management and contract automation features can drive substantial process efficiencies.

In addition to promoting efficiency, contract data extraction technology allows investment firms to pull valuable insights from the business and legal data in their NDAs. For example, firms can identify trending terms across NDAs, helping them approach future negotiations more effectively and better manage compliance obligations.

Ontra’s Contract Automation platform acts like NDA management software. Firms can see every buy- or sell-side NDA as it travels through the workflow, from the first stages of negotiations to execution via an electronic signature integration. Our solution automatically stores finalized NDAs in a central repository and provides firms with the ability to run reports and analytics based on their contract data.

Accelerate NDAs with Contract Automation

Ready to efficiently manage high-volume NDAs?

Without the right solution for handling buy- and sell-side NDAs, firms are vulnerable to potential process inefficiencies, higher costs, and poor outcomes. Ontra offers an NDA management solution combining industry expertise with cutting-edge technology. As investment banks and asset managers handle higher and higher volumes of NDAs, our platform can scale to match their needs.

Expert insights into top private equity NDA terms

Additional Resources

Ontra is an alternative legal services provider. We are not a law firm and do not provide any legal services, legal advice, or referral services and, as a result, we do not provide any legal representation to clients, nor do we participate in any legal representation of clients. The contents of this article are for informational purposes only, and are not intended to constitute or be relied upon as legal, tax, accounting, regulatory, or other professional advice, opinion, or recommendation by Ontra or its affiliates. For assistance or guidance regarding the impact or applicability of the topics discussed in this article to your business, please consult your legal or other professional advisers.