No Compromises on Back Office
PEO offers robust financial entity hierarchies, end-to-end accounting integration with a built-in GL, powerful asset management including layering, and elegant fund administration. The asset side includes the ability to capture valuations, financial statements, capitalization schedules, projections, and transactions. PEO includes full amortization behavior for debt structures, including OID. Clean and powerful capital reconciliation for legal entities is simplified with functionality including multiple closings, waterfall rules engine, vehicles, and static or dynamic sharing percentage ratios.
For the venture capitalist or private equity fund manager, the PEO framework is ideal for early or later stage direct investment in portfolio companies. On the asset side, all economic events are captured with full granularity. Capitalization structures provide an instant snapshot of 'who holds what' and an instant view of voting or ownership percentages. The key performance indicators (KPI's) provide a timeline analysis of key variables including quality of the management team, liquidity ranking, number of employees, and other key variables. The powerful IRR capability provides a time-series IRR that easily allows for comparison in alternate currencies, or slice/dice based analysis upon industry, investment stage, or geography - critical to support fundraising efforts.
For leveraged buyout funds, fewer assets are maintained, but the level of required granularity is very high. In addition to the need to capture detailed transactions at the security/tranche level, digital capture of financial statements is particularly critical. Once these financial statements are uploaded for a portfolio company, metrics can be calculated and compared with other assets.
For Fund of Funds, PEO offers abilities to track fund investment information and positions with configurable transactions that are setup from a limited partner investment perspective. Further, it is packaged with the ability to 'see through the looking glass' to underlying held assets through tier layers. Thus, the ability to analyze exposure, on either the fund investment or the underlying asset levels is available on demand.
For real estate and distressed assets, track purchases, disposals, rental income and other cash flows with ease. Slice and dice IRRs by geography, zip code, project manager, or any other attribute. Track key performance indicators and monitor investment property financial statements.
Robust Handling of Private Equity Transactions
AnalytX has developed proprietary Adaptive Financial Component Technology (AFCT), which means that PEO adapts to a clients financial requirements, opposed to clients having to adapt to PEO. The end result is that transactions can precisely be modeled to meet reporting requirements, without compromise. Each implementation engagement begins with a review of ‘standard transactions’ with the flexibility to add or change any transaction type. The end result: The flexibility of excel, transformed into a structured capture and calculation process using wizards, yielding precise modeling and reporting standardization across the entire organization.
Private equity investments may be (1) Direct Investments, (2) Fund-of-fund Investments, or (3) Holding Company investments using an intermediary financial structure. With PEO, flexible component transactions are tailored to your target level of detail. Equity and Debt hybrid structures can be maintained with ease. For Direct Investment in equity, events such as Purchases, Disposals, Valuations, Conversions, Stock Splits, Restructures, Dividends and Valuations can easily be tracked. For Direct Investment in debt, events such as Purchase, Interest, Principal Payments, are robustly managed and also tie directly into associated accrual schedules.
For fund-of-funds, events such as capital calls, cash distributions, payment in kind, realized gain/loss, and mark-to-market events are handled effortlessly. Utilizing PEO's powerful holding company paradigm, underlying portfolio companies can also be maintained. Thus, for investment in a fund structure the model provides cash flows both for the asset investment (directly) as well as the underlying investment in portfolio companies (indirectly).
For real estate and distressed assets, PEO can model characteristics, cash-flow transactions, and key performance indicators for any designated asset. PEO asset based calculations are fully configurable to model real estate cash flows with any designated granularity. Financial entities are organized in hierarchies.This approach is perfect for modeling cash flows either through an intermediary (holding company) or direct investment in real estate and distressed assets. In addition to powerful asset cash flow tracking abilities, PEO offers superior asset layering where asset cash flows may be allocated down multiple levels through to investors.
Asset Layering
Financial entities are organized in hierarchies. When an asset transaction occurs, it layers down through each tier, providing a granular picture of investment history through an unlimited number of entities. Any entity, including multiple tiers of funds, holding companies, and investors, has available an instant and complete snapshot of asset ownership.
Loan Servicing
PEO elegantly captures amortization behavior at the security level. Single or multiple security amortization behaviors can then be assigned and applied at the security tranche level. Implicit in the powerful loan servicing is the ability to handle coupon, step-ups, zero coupon, balloons, and floaters with floors and ceilings. Notable features also include the ability to change amortization behavior during the course of an amortization, full OID schedules, and calculation of prepayment penalties and late fees.
Multi-Currency, Geography-Independent Platform
PEO was created by software developers in Europe and the US; this diversity manifests itself in the software. Investments in alternative currencies can be denominated in specific home currencies. Moreover, transactions at either the asset or fund levels can be displayed in any transaction currency on demand. Other multi-geographic abilities include flexible security rights, restrictions, and features that can accommodate local jurisdictions where a security originates. Capital reconciliation schedules can also be tailored for specific tax books for any country. Finally, spectacular performance IRRs can analyze multi-currency exposure, in both graphical and tabular fashion.
