Private Equity Software
Since the global financial crisis many private equity funds have underperformed and there has been a shift in power from private equity firms themselves (the general partners) to their investors (the limited partners). In today’s highly competitive market, private equity firms must not only deliver superior returns, but also meet more stringent investor reporting and due diligence demands.
In their hunger for data, private equity limited partners expect general partners to deliver the same granularity and transparency that investors receive from the public market. They are demanding greater access to timely information.
At the same time, regulatory reporting requirements have become more onerous. New regulations such as Alternative Investment Fund Managers Directive (AIFMD), the Foreign Account Tax Compliance Act (FATCA), Form PF of the Dodd-Frank Act and the Institutional Limited Partners Association (ILPA) guidelines, have added to regulatory data and reporting pressures.
The private equity software challenge: transforming data into intelligence
As a consequence of all these developments, the overarching challenge for private equity firms is one of data management. With many reliant on manual processes or disparate systems there is an immediate need to close the gap between the data their systems generate and the coherent, customized information required by investors and regulators.
To continue to operate effectively, while delivering growth and performance, private equity firms therefore need new ways to transform data into intelligent information. As a result, investment in private equity software, and the automation and streamlining of data processes, is becoming essential to ensure transparency and accuracy not only in terms of reporting and compliance but also informed investment decisions.
SunGard provides private equity software solutions for:
- Private equity general partners – track and analyze portfolio performance, manage private equity accounting for new business lines, handle complex waterfall calculations and produce reports for limited partners (e.g. ILPA) and regulators
- Private equity limited partners – measure individual investments and report across funds managed by different general partners
- Private equity fund administrators – manage accounting and waterfall calculations for this specialized asset class
Find out more about SunGard’s Investran – a private equity software suite for managing the entire private equity investment lifecycle that can be installed on-site or hosted by SunGard on a software as a service (SaaS) basis.