Client story: Syntax

The context:

Syntax is a financial data and technology company that has pioneered a proprietary approach to company classification that transforms private and public company data for applications which include index construction, portfolio analysis, ESG measurement, and direct indexing. Its patented Functional Information System (FIS®) technology goes beyond traditional sector and industry classification by using a systems approach to organize the business, financial, and economic activities of public and private companies. By using this revolutionary technology to assess discrete economic business models, Syntax is able to provide public and private market investors alike with rich insights into specific funds, along with detailed company profiles and peer analysis.

With a client base that includes institutional investors, asset managers, and fintech firms, Syntax is expanding its data coverage to include private companies.

The challenge:

Syntax needed a robust source of data on sponsor-backed companies owned by private equity and venture capital funds to support its classification efforts. “The quality of our output is tied directly to the quality of our inputs, and the quality of data from private market data providers varies significantly”, said Hazim Al-Eryani, Vice President, Private Market Data Solutions.

The solution:

With extensive internal software capabilities, a data feed was the easiest way for Syntax to access and process the vast quantities of data it needed.

Sean Sandys, Syntax’s Chief Innovation Officer, described how the company was working with the data via the Data Feeds API within a few weeks:

“The API made the whole process an order of magnitude easier. No scraping or manual shepherding of data was necessary, and the ability to automatically refresh and update that information was an absolute necessity for scalable data organization.”

Much of the work involved a backend data pipeline to bring Preqin data into a series of databases, which Syntax’s team was then able to classify in batches. This process ensures that Syntax’s data is efficient and timely.

With the ability to pull company descriptions directly using the API, Syntax’s engineers have been able to save a great deal of time and effort when importing data. Once pulled, the data is stored in a data warehouse, refreshed daily using a custom automated process.

Why Syntax chose Preqin:

• Syntax wanted access to Preqin’s comprehensive data on over 290,000 private companies to support its existing classification efforts and expand its own solutions.

• Preqin’s Data Feeds API made it easy to import Preqin’s entire private company dataset, which can be routinely refreshed to ensure optimal accuracy.

• Working closely with Preqin’s customer success team and dedicated API specialists, Syntax was able to streamline the integration of Preqin data into its internal systems.

The result:

The initial beta test Syntax performed demonstrated that it could produce detailed private company profiles that approach the level of quality of its existing public market offering. Despite information for public companies being much more readily available, Preqin’s data has narrowed that gap significantly.

“The API is the main tool that has helped us to scale”, Sean commented. “When you’re dealing with hundreds of thousands of companies at once – and that information is changing at non-standardized schedules – you need some way to ensure you always have the latest data.”

Looking toward the future, Syntax is planning to expand its offering to include global coverage of private companies. “It all comes down to the quality of data”, added Hazim. “Preqin offers the necessary quality and accuracy.”

Max Rae, VP, Head of Company Intelligence Product Management at Preqin added: “We are excited to work with Syntax, supporting their development of a private markets company taxonomy and classification using Preqin’s private market company data.”

“We believe Syntax has developed something unique and powerful in the marketplace, which solves a real problem for customers in terms of company classifications. A product which goes beyond a traditional company classification system to understand a company’s position within the market, including its competitors, customers, supply chain, and product line.”

About Syntax:

Syntax LLC is a financial data and technology company that codifies business models into a relational system called Affinity Data™. Syntax operates through three segments: Affinity Data™, Syntax Direct™, and Syntax Indices™. Using its patented FIS® technology inspired by systems sciences, the Affinity Data™ segment offers the most comprehensive, granular, and accurate public and private market data available on the market. The Syntax Direct™ segment then uses this abundance of data to facilitate the near instantaneous creation and ongoing management of boundless direct indexing solutions and rules-based equity portfolios through a fully automated platform. The Syntax Indices™ segment offers customized and proprietary indices, including core global benchmarks and smart beta, defined outcome, and target volatility indices. These indices are foundational for a range of financial products – such as ETFs, UITs, and structured products. Learn more at www.syntaxdata.com.