How Perfona, the Private Equity Software, Can Automate Investor Management

Perfona, which is a hedge fund investor relations system offers operational advantages and features to investor management. These include:

  1. Calculate waterfalls. P&L allocations to investors and calculation of management and incentive fees for shadow reconciliation to the admin and internal record-keeping purposes.
  2. Act as a hedge fund CRM system, recording on investor data such as contact info, social security number, and KYC info.
  3. Track client demographics, endowments, pension funds, and profits.
  4. It is an entirely web based, online investment management software requiring no application download nor inhouse resources.
  5. Automate back office processes by providing real time investor reporting to front office and investor relations team and removing the bottleneck of back office communication.

One of the most important aspects of private equity fund administration is waterfall calculations. After all, if you’re going to start a hedge fund, your investors will want to earn profit on their investments. Generally, the waterfall calculation is performed by the Fund Administrator, and signed off by the General Manager (Hedge Fund Manager.) Waterfall calculations are extremely intricate. It’s worth doing some research into an investment management system to determine the best way to go about it. An investor management system like Perfona is well suited to the task which can handle both hedge and private equity style waterfalls.

Each step on its own is not terribly complicated, but they each carry a chance for human error. With all the steps together, that chance is cumulative. You can visually inspect all of your calculations but that is not only inefficient use of your time, but still carries the chance for human error. The only guaranteed method is to use a waterfall calculator via a portfolio accounting system like Perfona.

A dedicated fund accounting software eliminates this issue. In addition to reliability, there are several other benefits to using an investment accounting software for waterfall calculations, such as gaining useful data about your investors. This can include demographics, the liquidity schedule attached to various share classes, how different investors behave across various client types, as well as liquidity forecasting. Cashflow forecasting helps you pay attention to your most valuable clients right before their renewal dates and attend to their needs and concerns. Given all of its advantages and abilities, Perfona is the best investment management software. Investment management industry has been looking for a system to do all of this and OpEff has pioneered a system that is able to handle complex investment management requirements.

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