Fund management software offers a sophisticated means for managing all aspects of a fund and its investors throughout the whole investment cycle. Fund management software for private equity, real estate and other asset types track historical and current fund, portfolio and investor data. Reporting on this data to communicate to funds, principal investors and other limited partners is easy.
Fund management software reduces administrative burdens by automating repetitive and error-prone tasks like the management of capital call and distribution notices. Manage mailing lists, use embedded Microsoft Word to draft formatted templates using sophisticated algebraic operands as needed, and run tests to merge investor information into the templates.
Some of the most significant features of fund management software include share, class and share type management; fee and investor allocation management and calculation; waterfall modeling; seamless integration with the general ledger; master feeder, fund family and sub-vehicle structure management; and the ability to model complex fund structures.
Fund operations are managed in a flexible, user-friendly tabular form, which include commitments, capital calls, distributions, subscriptions, redemptions and management fees. Fund holdings are also managed in tabular form. There are standardized views for fund positions and performance. And for added flexibility, portfolio views in the fund management software can be filtered and presented as of any date.
There are some fund management software that offer embedded Excel throughout the product. This unique capability allows users to benefit from using Excel-based models directly in the application while leveraging the enterprise features of the fund management software like direct access to data across the system, collaboration between users, versioning, auditability, scalability and security
The interaction between Excel spreadsheets and fund management software is bi-directional, which means that embedded spreadsheets can be automatically populated with data from the software. Alternatively, users can manually enter data. This feature allows firms to leverage existing valuation, allocation and even waterfall models without the need to recreate them.