For private equity funds, tracking portfolio ownership data is a pain point that causes challenges in portfolio valuations.
Private equity structures are complex
Private equity funds use complex corporate and capital structures across their portfolios. It is common for portfolio cap tables to have multiple instruments with varying terms to accommodate management shareholders and align their interests with the fund.
These structures are difficult to manage and funds often lack visibility over them. Common pain points include:
- Funds and portfolio teams have to maintain multiple spreadsheets tracking portfolio cap table data
- Portfolio cap tables are constantly changing due to events at the portfolio level (joiners, leavers, buybacks, issuances, cancellations, reorganisation etc)
- Complex calculations need to be maintained (e.g. to track interest schedules on Loan Notes and Preference shares)
All the above results in data and workflow challenges during portfolio valuations and waterfall modelling
DealsPlus solves the above paint points in three clear stages.
Stage 1: Create a single source of truth across the Fund’s portfolio structures
In stage 1, DealsPlus creates a single source of truth across a private equity fund’s portfolio structures. We onboard all your portfolio ownership data to give you one place to access them. Our platform converts the data into meaningful information with real-time cap tables, ownership registers, structure charts, documents, and calculated interest schedules on coupon-bearing instruments.
At the end of stage 1, a private equity fund gains full visibility and control across portfolio structures and can undertake intelligent data analytics.
DealsPlus’ landing page showing all the portfolios held by a private equity manager
DealsPlus has role-based access controls to enable granting of access across internal and external teams flexibly and securely. DealsPlus is not priced by the number of users and has no restrictions on the number of users.
Stage 2: Link ownership data to portfolio valuation and waterfall models
The real-time cap table data in DealsPlus is linked to the portfolio valuation and waterfall model. This enables fund managers to gain visibility on the value split between each instrument and shareholder in the portfolio cap table. It is possible to obtain this value by any date – historic or future. For example, the fund can see the split of value between its holdings and those held by non-fund shareholders (e.g. management teams, co-investors etc).
An example of a portfolio valuation and waterfall model in DealsPlus
Funds can run portfolio waterfall models with ease by linking real-time cap table data and see the valuation split between the fund and other shareholders.
Stage 3: Role-based-access-controls and intelligent workflows allow secure and easy administration during the portfolio’s holding period
DealsPlus’ secure role-based access controls enable granting of access to both internal and external teams (e.g. cross functional teams, external advisors, and portfolio teams). Intelligent and user-friendly workflows enable easy administration of cap tables of any complexity during the portfolio holding period. DealsPlus captures all cap table events, links underlying documents to events, calculates interest schedules on coupon-bearing instruments, maintains detailed ownership registers, draws structure charts using legal entity and cap table data, and provides useful analytics of ownership data.
DealsPlus’ digitised capital register that has inbuilt intelligent workflows
Intelligent and user-friendly workflows enable ownership data to stay real-time.
Benefits of DealsPlus for private equity funds and portfolios
- Increases speed and accuracy in portfolio and fund valuation
- Gives decision makers valuable data and insights
- Enables better processes in managing portfolio ownership data
- Keeps structures transaction ready
Our private equity cap table management suite is one of six powerful modules that combined enable private equity funds and their portfolios seamlessly manage investment structures and stay transaction ready.