A PE fund ($12B AUM) realized that its extremely complex and manual carry calculation process had yielded incorrect results.

Waterfall Automation

P&L reduced the time to produce carry statements from 45 days to 2 weeks. Our team was recognized by the CEO for visible improvements to such a critical process.

Problem

A PE fund ($12 billion AUM) with a consolidated carry plan across 13 funds, realized that its extremely complex and manual carry calculation process had yielded incorrect results; this client found themselves facing an independent audit and possible litigation.

Solution

The client turned to our team to analyze their process to identify issues and to implement an automated solution. After assessing several solutions, an integrated solution was implemented which included recalculations, true-ups, automation via Investran, and new process & procedures.

Complexities

  • Interpreting vague partnership agreements
  • Adjusting for exceptions/special provisions
  • Ensuring transparency of process
  • Confirming accuracy of results (newer funds)
  • Comprehensive testing of business scenarios
  • Ongoing maintenance and monitoring of the system given the sensitivity of data
  • State of data prior to automation could lead to extensive data cleanups
Case Study

Business Process Remediation

A PE fund ($8B AUM) with a distressed finance and accounting group was required to document and remediate their business processes prior to formal audits.

Read More »

More Case Studies