Automated portfolio tracker boosts efficiency and transparency for private equity firm

Posted by | Fuld & Company

Objective 

A private equity firm specializing in health-tech investments needed a comprehensive portfolio tracker to analyze key performance metrics over time, automate performance assessments, and significantly reduce the time spent on portfolio evaluation and reporting.

Solution 

Fuld developed a dynamic tracker leveraging advanced data analytics and visualization tools to enhance reporting efficiency and provide real-time insights into the firm’s portfolio:

• Automated data input and consolidation:
  • Created standardized datasets by collating data from disparate sources into a centralized data hub.
  • Automated data consolidation to eliminate manual data entry and streamline portfolio data aggregation across public and private investments.
• Dynamic performance calculation:
  • The tracker automatically calculated key performance metrics, including:
    • XIRR
    • MOIC
    • Fair Value
    • Long Nickel – PME XIRR
  • Customizable time frames allowed for efficient analysis of both historical and current performance, providing the client with actionable insights.
• Time-efficient reporting:
  • Developed automated reporting features that generated visual summaries and performance dashboards, enabling deep dives into portfolio companies, without extensive manual input or recalculation:
    • Rapid, high-level overviews of portfolio performance.
    • Detailed financial analysis.  
• Rapid report generation
  • Fuld integrated Power BI to automate tasks and refresh tracker data within minutes, drastically reducing the time required for portfolio updates and performance assessments.

Outcome 

• 80% reduction in portfolio analysis time: The automated tracker significantly improved operational efficiency, saving valuable time.
• Better decision-making: Real-time insights and streamlined processes enabled quicker, data-driven decisions, positioning the firm for long-term success.
• Improved reporting accuracy and consistency: Automation reduced errors and increased transparency of stakeholder reports.
• Enhanced investor communication: Dynamic reporting tools improved the quality and speed of updates, fostering stronger relationships with investors.

Tags: Financial Services, Mergers & Acquisition, private equity