How asset managers can finally make tax data work for them
Unlocking data value doesn’t start with more technology—but a new tax operating model
For modern asset managers, data is everything. It fuels investment strategies, guides operational decisions, and defines the investor experience.
But for the tax function, this explosion of data has created a crisis of complexity. The “democratization of access” has led to a massive increase in the number of investors in alternative funds. Product innovation is relentless, with bespoke structures and investment vehicles demanding periodic liquidity and daily net asset value (NAV) calculations that place immense pressure on back-office operations.
Add to this the rise of new asset classes—from private credit and data center infrastructure to tokenization—and a patchwork of disparate data from multiple administrators and brokers, and the picture becomes clear: a strategic asset has become a significant operational burden.
Watch: Why managing massive data volumes in asset management requires a shift in strategy, capability, and enabling technology.
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Many firms have considered a direct technology investment to manage their data complexity and the inefficiencies it creates. But this approach is often flawed, demanding significant capital for a standalone system that is often static and starts falling behind the curve the day it launches. More fundamentally, it misses the human element—many tax functions lack the internal capacity and specialized personnel to keep pace with today's technology.
What if there was a better way? What if you could access a market-leading, continuously evolving technology stack not as a capital expense, but as a core component of your operating model?
This is where a tax managed services alliance offers a new blueprint. This is not traditional outsourcing; it is an embedded, “one team” operating model where the provider becomes a direct extension of your tax function. It’s a strategic relationship designed to turn your data burden into a competitive advantage.
The technology engine for a modern tax function
At the heart of this model is a centralized, global data and technology platform, like KPMG LLP’s Digital Gateway, which is the result of more than a decade of investment. It serves as a single source of truth for both your team and your managed services provider. By ingesting, standardizing, and governing data from all sources, it can eliminate the high-risk, low-value work of manual reconciliations.
Crucially, the platform is agnostic, built to ingest and standardize data from your existing ecosystem of multiple, varied fund administrators without requiring disruptive changes. This creates a single source of truth where both your team and the KPMG team operate in the same environment on the same data.
Most importantly, this clean, structured data provides the foundation needed to move beyond hype and harness the real power of technologies like generative and agentic AI.
01
Calculate performance on a post-tax basis
a critical and increasingly demanded differentiator for attracting sophisticated capital
02
Identify anomalies and risks
across vast datasets in real time
03
Automate last-mile reporting and analysis
freeing your team to focus on high-value strategic work, such as using analytics to help enhance the EBITA of portfolio company investments
And the value extends beyond reactive data processing. The relationship creates a proactive, upstream feedback loop. For example, insights from the platform can identify the root cause of recurring data errors, enabling the team to work with your controllership function to fix how data is booked at the source—preventing bad data from being created in the first place.
This isn’t a static solution. A key advantage of this model is the “network effect.” The platform is constantly improving based on the aggregated learnings, feedback, and best practices from thousands of users across the globe. This collective intelligence drives rapid innovation, helping ensure your tax function benefits from the latest advancements without ever needing its own dedicated development team. Your transformation journey is not only funded through operational efficiency; it is future proofed by design.
Learn more about how KPMG Tax Managed Services integrates the latest technology to lower operating costs and increase business value.
Your blueprint for transformation: Action steps for tax leaders
With tax data exploding, your operating model can’t stay the same. Starting a transformation journey can feel daunting, but it begins with a few clear steps. For asset management tax leaders ready to stop building more tax systems—and start building capability and value—here is how to begin.
1
Assess your current state
Before you can build for the future, you must understand the present. Map your key data flows, identify process bottlenecks, and quantify the hours your team spends on manual, low-value activities. This analysis builds the business case for change.
2
Define your strategic future
What does success look like three years from now? Your goals should extend beyond efficiency. Are you aiming to deliver post-tax alpha calculations to the front office? Do you want to provide data-driven insights that help optimize portfolio value? Defining these strategic outcomes will ensure your transformation is focused on what matters most.
3
Look for a transformation partner, not a task provider
A true transformation requires a service provider invested in your success, not just a vendor executing tasks. When evaluating potential providers, ask critical questions that look beyond cost:
- Does their technology platform provide a genuine, single source of truth for all stakeholders?
- What is their roadmap for innovation, and how are they practically and securely embedding technologies like AI?
- How does their model ensure you benefit from continuous improvement and collective intelligence (the "network effect")?
- Can they demonstrate a track record of elevating the tax function from a cost center to a strategic value creator?
Your guide through a changing tax world
Taming the data deluge is no longer just about improving efficiency; it is a strategic imperative for growth, differentiation, and competitive advantage in the asset management industry. A strategic tax managed services provider does more than deliver a solution; it serves as a guide to help you navigate the changing waters of technology and regulation. By leveraging a managed services model, you gain the platform and the people to build your blueprint for a more strategic, agile, and data-driven tax function.
Learn more about how KPMG Tax Managed Services can help you turn your data burden into a strategic asset.
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Meet the team
Christopher Yeaton
Partner, Tax Managed Services Practice Leader, KPMG US
David Mack
Partner, Tax Managed Services, KPMG US
Kory Schestag
Partner, Tax Managed Services, KPMG US
David Neuenhaus
Global Asset Management Sector Head, US Asset Management & Private Equity Line of Business Leader, KPMG
Christopher Yeaton
Partner, Tax Managed Services Practice Leader, KPMG US
David Mack
Partner, Tax Managed Services, KPMG US
Kory Schestag
Partner, Tax Managed Services, KPMG US
David Neuenhaus
Global Asset Management Sector Head, US Asset Management & Private Equity Line of Business Leader, KPMG