{"id":443,"date":"2023-08-23T06:29:00","date_gmt":"2023-08-23T06:29:00","guid":{"rendered":"http:\/\/www.dealsplus.io\/blog\/?p=443"},"modified":"2023-09-26T06:53:25","modified_gmt":"2023-09-26T06:53:25","slug":"how-dealsplus-helps-private-equity-funds-digitise-and-manage-their-investment-structures","status":"publish","type":"post","link":"https:\/\/www.dealsplus.io\/blog\/how-dealsplus-helps-private-equity-funds-digitise-and-manage-their-investment-structures\/","title":{"rendered":"How DealsPlus helps private equity funds digitise and manage their investment structures."},"content":{"rendered":"\t\t
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In this article we will cover how DealsPlus helps private equity funds digitise and manage their investment structures.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Profile of a DealsPlus client<\/span><\/b><\/p>\n\n\n\n\n\n
\n

Client<\/b><\/p>\n<\/td>\n

\n

Private equity fund manager<\/p>\n<\/td>\n<\/tr>\n

\n

Profile<\/b><\/p>\n<\/td>\n

\n

Manages one or more private equity funds holding multiple investments<\/p>\n<\/td>\n<\/tr>\n

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DealsPlus use case<\/b><\/p>\n<\/td>\n

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Digitise fund & portfolio investment structures to\u00a0<\/p>\n

simplify:<\/p>\n

\u00a0<\/p>\n

\u00b7\u00a0 \u00a0 \u00a0 \u00a0cap table management & portfolio valuations<\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 fund compliance & reporting<\/p>\n

\u00b7\u00a0 \u00a0 \u00a0 \u00a0portfolio exits & transaction readiness<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Private equity investment structures are complex<\/span><\/b><\/p>\n

Private equity funds have complex investment structures at both the fund and portfolio level. Each fund has a unique fund structure consisting of multiple fund entities and feeder vehicles into which the funds investors invest. The fund entities are in turn invested across several portfolio companies, each one of which has its own investment structure consisting of a series of holding and operating entities. In addition, to align the interest of the fund with the management teams and co-investors, each portfolio company has a complex ownership structure consisting of multiple classes of debt & equity instruments that are held by the fund entities, portfolio management, and any co-Investors.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Here\u2019s an illustrative example of a PE fund showing both the fund and portfolio structures:\"\"<\/span><\/p>\n

\u00a0<\/p>\n

How DealsPlus helps?<\/em><\/p>\n

DealsPlus digitises and creates a single source of truth across fund and portfolio structures. This gives a GP\u2019s cross-functional teams (finance, tax, legal, compliance), external advisors, and portfolio teams key investment structure information at their fingertips.<\/p>\n

Investment structures change throughout the holding period<\/strong><\/p>\n

No only are private equity investment structures complex, but they are constantly evolving through the life of a fund and a portfolio company\u2019s holding period.<\/p>\n

    \n
  • At the portfolio level, ownership structures and cap tables evolve throughout the holding period due to events at the portfolio level: management team changes, add-on acquisitions, reorganisations etc.<\/li>\n<\/ul>\n
      \n
    • At the fund level new investments are made and existing investments are sold.<\/li>\n<\/ul>\n

      How DealsPlus helps?<\/em><\/p>\n

      DealsPlus\u2019 intelligent workflows enable easy administration and validation of investment structures throughout their life. Our role-based access controls mean that structures can be managed collaboratively between fund managers, their advisors, and portfolio teams. As the diagram below shows, DealsPlus provides one connected platform serving all key constituents.<\/p>\n

      \"\"<\/p>\n

      \u00a0<\/p>\n

      Data needs<\/strong><\/p>\n

      Fund managers and their portfolio teams need accurate and timely data on investment structures for multiple uses cases such as:<\/p>\n

        \n
      • Portfolio valuations and waterfalls<\/li>\n
      • Fund tax compliance and reporting<\/li>\n
      • Portfolio accounts, audits, and compliance<\/li>\n
      • Portfolio exits<\/li>\n<\/ul>\n

        How DealsPlus helps?<\/em><\/p>\n

        DealsPlus automates and simplifies all of the above data needs and processes.<\/p>\n

        In Summary<\/strong><\/p>\n

        DealsPlus offers our private equity clients the best in class solution for investment structure management, keeping their fund and portfolios structures \u2018transaction ready\u2019 at all time.<\/p>\n

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        In this article we will cover how DealsPlus helps private equity funds digitise and manage their investment structures. Profile of a DealsPlus client Client Private equity fund manager Profile Manages one or more private equity funds holding multiple investments DealsPlus use case Digitise fund & portfolio investment structures to\u00a0 simplify: \u00b7\u00a0 \u00a0 \u00a0 \u00a0cap table […]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-443","post","type-post","status-publish","format-standard","hentry","category-private-equity"],"_links":{"self":[{"href":"https:\/\/www.dealsplus.io\/blog\/wp-json\/wp\/v2\/posts\/443","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.dealsplus.io\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.dealsplus.io\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.dealsplus.io\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.dealsplus.io\/blog\/wp-json\/wp\/v2\/comments?post=443"}],"version-history":[{"count":9,"href":"https:\/\/www.dealsplus.io\/blog\/wp-json\/wp\/v2\/posts\/443\/revisions"}],"predecessor-version":[{"id":468,"href":"https:\/\/www.dealsplus.io\/blog\/wp-json\/wp\/v2\/posts\/443\/revisions\/468"}],"wp:attachment":[{"href":"https:\/\/www.dealsplus.io\/blog\/wp-json\/wp\/v2\/media?parent=443"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.dealsplus.io\/blog\/wp-json\/wp\/v2\/categories?post=443"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.dealsplus.io\/blog\/wp-json\/wp\/v2\/tags?post=443"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}