Case study
Our client, their challenge
A global private equity investment management firm initially managed their fund administration in-house, relying on an internal back-office team.
However, they faced mounting pressure from their institutional investors who expected even greater transparency and the reassurance that comes with third-party administration. Their existing processes presented significant obstacles:
Cumbersome systems lacking sophistication to produce crucial performance metrics, such as internal rate of return (IRR), distributed to paid-in (DPI), and multiple on invested capital (MOIC).
Inability to integrate financial records accurately across multiple funds
No efficient way to reflect investment performance to industry standards
Limited capacity to meet evolving SEC regulations and investor expectations
Following a recommendation from one of their investors, the client came to IQ-EQ for a solution.
Our solution
The collaboration involved key personnel from both teams, including business development representatives and operational specialists, who provided comprehensive demonstrations of IQ-EQ’s advanced technology.
System migration and rebuild – We migrated the client’s historical data to FIS Investran, replacing their in-house administration systems. This work included rebuilding their carried interest models and all reporting requirements, such as financial statements and distribution notices, using the Investran investment accounting software.
Integrated performance reporting – Installed the IQ-EQ Cosmos system to integrate seamlessly with their investor data, allowing for automated performance metric generation on a quarterly basis. This integration enabled the client to produce robust performance figures that adhered to industry standards and Securities and Exchange Commission (SEC) regulations.
Direct data access – The new system provided the client with direct access to their performance metrics through the Cosmos platform, allowing them to analyse data and derive insights independently.
This transformative approach significantly reduced error rates and improved the speed at which financial information could be compiled and reported.
“This transformation not only resolved the inefficiencies of their previous system but also set a new standard for how this client manages its fund administration processes using technology,” says Matt Andrews, Senior Managing Director at IQ-EQ.
The results
With the successful implementation of IQ-EQ’s technology-empowered solution, the client now enjoys substantial improvements across their operations:
Enhanced operational efficiency – Streamlined processes significantly reduced error rates and accelerated financial information and compilation reporting
Accurate, timely reporting – Automated quarterly performance metric generation ensures reliable data adhering to industry standards and SEC regulations
Direct performance access – IQ-EQ Cosmos provides the client with independent ability to interrogate performance metrics over time, revealing trends and insights into their investment strategy
Better decision-making – Reliable performance metrics facilitate more informed decisions, particularly when fundraising or reporting to investors
Third-party validation – Independent administration provides the transparency and reassurance institutional investors expect
Scalable foundation – Technology infrastructure positions the client to adapt to changing market conditions and evolving investor expectations
“The opportunity ahead is immense,” say Matt Andrews. “With these technological advancements, this client is not only prepared for future growth but is also positioned to exceed the evolving reporting expectations of their investors.”
Through this partnership, the client has established a foundation for ongoing improvements in financial performance and operational agility, enabling them to deliver exceptional value to their clients and investors whilst thriving in the competitive landscape of real estate investment management.
Looking for similar support? Contact our team today.
