Strategic investment management

Investment management is not only a key element for the success and stability of companies, but also an area where significant risks lurk. From significant financial losses to legal sanctions and internal conflict, the consequences of poor management can be devastating. But when done right, these risks can turn into opportunities to grow and strengthen your business. In this article, we dive into investment management, highlighting its critical importance and how to optimize both operational and strategic functions in your company.

What is investment management?

Investment management involves the systematic administration, control and monitoring of company investments. This process includes the administration of investments and the active exertion of influence and control over them. The main tasks include the strategic planning and alignment of investments, monitoring their finances and operational performance as well as risk management. The core competencies of investment management also include shaping the relationships between the parent company and the companies involved. The aim is to ensure the maximum value contribution of the investments to the company as a whole and to manage their development in line with the corporate strategy.

Objectives and tasks in investment management

  1. Supporting the corporate strategy: The aim of investment management is to support the company's overall strategy by ensuring that investments are in line with the company's long-term goals and vision. This includes the selection of investments that offer strategic synergies and complement the company's core competencies.

  2. Safeguarding and increasing the value of the company: Another key objective is to maximize the value of the company. This is achieved by actively managing and optimizing the investment portfolio. This includes evaluating the performance of each investment, identifying growth potential and deciding whether to hold, sell or expand investments based on their performance and strategic importance.

  3. Risk management and compliance: Another objective is the management of risks associated with the investments. This includes identifying, assessing and minimizing risks and ensuring that all investments comply with the applicable legal and regulatory requirements.

  4. Promoting integration and cooperation: Investment management also promotes the integration of the portfolio companies into the larger corporate structure and fosters cooperation between the various units. This is intended to create synergies and increase the efficiency and effectiveness of the entire corporate network.

Significance and legal aspects of investment management

  • Legal aspects of investment management
    Legal and technical elements are closely interwoven in the area of investment management. One of the core tasks is to carefully monitor the supervisory boards of the portfolio companies and to efficiently manage the roles and responsibilities of the people working on them. It is crucial to ensure that all legal requirements and regulations are complied with in order to avoid legal risks. It is also very important to clearly define and monitor the responsibilities and powers within this body in order to guarantee effective and proper corporate governance.

  • Standard processes in investment management
    Standard processes include, in particular, the careful planning and management of subsidiaries, also known as investment controlling and investment management. This includes the preparation and monitoring of decisions, which ensures that strategic and operational decisions are made on the basis of solid data. It also includes the management of all investments, the regular evaluation of their performance and the adjustment of the investment strategy to ensure optimal alignment.

  • Information and communication in investment management
    Transparent and effective communication with all relevant stakeholders, including management, the Supervisory Board, shareholders and other interest groups, is crucial. This includes regular reporting on the performance of investments, key developments and strategic decisions. A clear and consistent communication strategy helps to secure the trust and support of stakeholders and ensure that everyone involved is on the same level of information.

Optimization of investment management with ContractHero

ContractHero provides contract management software designed to help companies organize and manage their contracts. This software has features specifically designed for the management of contracts and investments. This includes multi-client capability, which enables the management of different companies or subsidiaries on a single platform. In the context of participation management, ContractHero offers the following functions:

  1. Management of multiple companies on one platform: ContractHero enables companies to manage multiple companies or subsidiaries on a single platform. This facilitates the overview and management of various holdings, as all relevant information and documents are centralized.

  2. Restricted access for increased data security: The ability to restrict access to confidential information to individual subsidiaries ensures greater data security. By precisely mapping the company structure in the platform, information can be released specifically for certain teams or clients, which protects confidentiality and ensures compliance at the same time.

  3. Increased efficiency in contract management: Centralized management of all contracts and documents from different subsidiaries on one platform makes contract management more efficient. This saves time and resources, as duplication is avoided and all necessary documents can be accessed quickly.

  4. Scalability according to company requirements: Multi-tenancy is scalable, which means it can grow with the business. Companies can add or remove additional subsidiaries as required, enabling flexible adaptation to the dynamic needs of the company.

  5. Improved internal communication: The shared platform facilitates internal communication and data exchange between different departments or subsidiaries. All relevant teams have access to the same up-to-date data, which improves coordination and harmonization between the various units.

  6. Efficient auditing: The central platform makes auditing processes considerably easier. As all relevant information and documents are consolidated, audits can be carried out more quickly and comprehensively. This leads to more efficient auditing and an improved overview of compliance and company performance.

Overall, ContractHero's multi-client capability enables significantly improved management and coordination of investments. This leads to more efficient participation management, improved safety standards, enhanced internal communication and more efficient auditing processes. To experience these benefits in person, we invite you to schedule a free demo with one of our experts.

Sebastian Wengryn

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