Can Private Equity Accounting be Automated?
Even the unique accounting challenges that private equity firms face can't stump Penny® - It Works, our powerful partnership accounting system.
From tracking capital and allocating the P/L on a deal-by-deal basis, to waterfalls and special distribution schedules, this flexible software maintains all of the records and reports you need to administer private equity funds.
Manage Across Intricate Legal Entities
Commitments
Track commitments to each fund by investor and investment.
Calls
Capital can be called from investors based on amount or percent.
Distributions
Manage returns of capital and recallable distributions.
Fund of Funds
Store commitments, calls, and distributions of a fund in other funds.
Liquidity
Limit investor capital withdrawals by creating liquidity gates.
Complex fund structures (nested, feeder, fund of funds) are no problem.
Commitments, calls, and distributions are easily tracked across rounds.
Performance gains and returns can be calculated at any time.
Easily transfer partner capital among funds and tranches.
Leverage Powerful Financial Forecasting
Streamline your month-end processes by tracking capital calls based upon either the amount or percentage committed. With just a few mouse clicks, investors can be opted out of a given investment or investment group.
With Penny, we can quickly answer any investor questions by tracking the unfunded and recallable amounts for both our investors and investments.
Chief Financial Officerprivate equity fund of fund group
Penny® lets you systematically manage withdrawals - distributing pro rata from the fund, or for a given tranche. Handle nuances like recallable distributions and return of capital.
Because forward-planning is critical, the software helps you keep tabs on both actual and prospective transactions, including:
- liquidity gates - capital subject to redemption;
- ad hoc estimates - fund & investor performance;
- cash flow and P&L for each entity - to project funding needs.
Case Study
Penny was chosen by a $350 million dollar private equity fund of fund group to administer their investors.
The client also uses Penny® to keep track of their investments in other private equity funds. That integration with Penny's partnership features proved critical when an investor bequeathed their investments to their children.
The system quickly processed the assignment, separating the commitment as well as the capital activity, and providing all of the necessary reporting - both before, and after - the assignment occurred.
