Four Top Tips for GPs Facing Performance Valuation and Portfolio Monitoring Challenges

By: Allan Parks

Product Manager, Fund Performance & Portfolio Monitoring Solutions
August 10, 2021
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GPs looking to collect, analyze, monitor and report Port Co and Fund performance data both internally and with their investors face a number of challenges. As they contend with data scattered across their organization in siloes and single-point systems, GPs need to be able to gain actionable insight, automate workflows, aggregate data, and produce stakeholder reports to keep everyone on the same page.

Below are our top tips for GPs to help them consolidate financial information, collect KPIs, and integrate key real time data so they can make fully-informed investment decisions.

Tip 1: Simplify your data collection process

Keeping track of your portfolio companies’ financials and KPI submissions during recurring reporting cycles can be a difficult task, especially since GPs’ portfolios are becoming increasing complex, with investments in multiple alternative asset classes, geographies, and currencies. Integrating disparate single-point solutions can be difficult and time-consuming, opening GPs up to errors and adding inefficiency to the mix, and spreadsheets are not optimal for handling more than a handful of similar fund types.

Instead, GPs need a way to automate workflows, and leverage tools that provide ready-made templates and KPIs. Along with this, the flexibility to add custom KPIs and create their own workflows quickly and easily will help GPs systematize processes and reduce time spent on repetitive tasks.

GPs should look for a fully-integrated solution that can provide them with data collection capabilities that are automated, customizable, and that streamline workflows. Solutions that also provide automated notifications with status tracking, as well as tools to create and manage custom templates for each company will free them up to concentrate on higher-value tasks. Finally, a comprehensive library of pre-built KPIs — including ESG KPIs — along with a built-in KPI builder helps them create their own KPIs quickly and bypass busy work. Taken together, these functionalities let GPs focus on value-added work and spend less time following up.

Tip 2: Improve your data analysis

GPs require the flexibility to analyze Fund and Port Co (holdings) level data and provide that data to stakeholders quickly and efficiently. To do so, it’s imperative they organize data they collect in a single instance, consolidating the information so they can quickly assess the state of their portfolios. Without a holistic view of portfolio performance from individual holdings to fund level in one solution, it becomes difficult to make sense of the data they have. Each team within the GP requires up-to-date data access and usability features that will enable them to fundraise effectively, track performance against projections, monitor fund performance, exposure, and risk, and respond speedily to investor queries, among other tasks.

By utilizing fully-integrated technology that supports a consolidated front-end for monitoring and analysis, deal teams can easily share information across the organization, ensuring that everyone stays on track.

Further, GPs should adopt a technology solution that allows them to monitor trends across a number of KPIs, integrates information across all individual holdings, industries, geographies, asset classes, and portfolio types, and integrates external data sources to provide a more comprehensive picture of their investments. Lastly, business intelligence and data management capabilities will allow them to drill down into asset level details and build customized visuals so they can satisfy their needs for information quickly.

Tip 3: Optimize your data distribution

In order to share Port Co and Fund data quickly from front to back office, GPs need high quality, timely, and accurate internal reporting in order to make strategic and timely investment decisions. They must provide internal stakeholders, operating partners, and GP leadership with both qualitative and quantitative information while customizing the level of detail to best suit the needs of each stakeholder.

A solution that solves the reporting conundrum — “how do I generate more and better reports that internal stakeholders need without elevating headcount and costs?” — will be an important consideration in choosing an end-to-end technology system. Some of the features GPs should look for include: standard and custom analytics and dashboards, automated report distribution to both internal stakeholders and investors, and self-service options that allow stakeholders to generate ad hoc reports as needed.

Tip 4: Streamline your reporting

Once GPs are able to optimize their reporting process, they’ll need a dependable way to distribute that information to LPs and external stakeholders in a regular and timely way. Providing up-to-date information to investors is no small task; it can cause a fund’s IR team to spend an inordinate amount of time addressing multiple queries – both standard and ad hoc – preventing them from concentrating on higher level tasks.

Successfully meeting this challenge requires tools such as customized dashboards so IR teams can quickly answer ad hoc queries and grant investors access to self-service reporting tools, as well as an investor portal that LPs can leverage to easily to access their information. With an investor portal, standard and customizable automated LP reports can be distributed directly to LPs, and access to supplemental reporting on financials and portfolio information at the fund level can be configured on a custom basis, providing a self-service element to the process. The result is that LPs will be able to access the information they seek without added headcount or extra manual work on the part of the GP.

How Allvue Systems can help

With Allvue’s Fund Performance & Portfolio Monitoring solution, GPs can turn data into actionable information so they can focus on sourcing capital and managing their portfolio. FPPM collects and consolidates KPIs and integrates them with other key real time data, empowering all GP stakeholders across the firm to make superior investment decisions. Our solution utilizes a cloud-based, intuitive platform that gives GPs powerful analytics and configurable, fully-integrated reporting and dashboarding tools, so they can take full control of their portfolio. With extensive reporting capabilities and Business Intelligence integration, spotting trends at the company or fund level is just a click away.

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