Fund Administration
Powerful, Flexible Capital Reconciliation
ORE's capital reconciliation view consolidates the equity view into an interactive matrix. Perform single or multi-tier allocations to investors and view full granularity for any item in the capital reconciliation. ORE handles unit based and open-ended funds with ease. And of course - private equity style closed-end funds are also fully supported. Run investor capital balance calculations on an aggregated or single tax entity basis with the ability to switch views to tax, accrual, or book with a single click.
Most notable for real estate funds is the ability to support closed end structures as well as open end structures with constant ins and outs into the fund. For instance, closed end funds (traditional private equity structure) use designated sharing percentage ratios to track and allocate real estate fund cash flows including contributions, realized gains, valuations and unrealized gain layering into investor capital accounts. Alternatively, ORE automates the allocations to investors with the ability to dynamically calculate ownership units with complete audit trail history.
Integrated General Ledger
Accounting entries and transactions are firmly linked in the ORE model, and provide a consistent ‘one touch’ straight-thru accounting model. Accounting entries are created automatically from derived transactions. Mapped transaction and general ledger charts of account hierarchies automatically create a drill-down trial balance summary. ORE has the ability to produce accounting reports including the trial balance, income statement and balance sheet for a designated fund legal entity.
Waterfall Rules Engine & Dynamic Sharing Ratios
ORE has a proven track record in modeling real estate and distressed asset waterfall calculations. ORE features a powerful waterfall rules engine that allows the business object layer to access conditions during capital reconciliation and to dynamically allocate a waterfall amount or to select the appropriate sharing ratio scheme for any item. The result is the ability to handle provisions such as claw backs, hurdle rate requirements, and other types of allocation schemes. Also, sharing percentage ratios can be set up to calculate automatically while maintaining full history. In a nutshell, ORE transcends the limits of other systems with a fully automated waterfall processor without the limitations of ‘black box’ processing where actions are taken but wihtout systematic variable documentation.
Pass-Thru Processing
Using ORE, a tangible property cash-flow originates on the asset side and can be allocated to the fund side through a transaction wizard. From that allocated fund, layering and flow-through amounts are pushed dynamically to each tier in the financial hierarchy. Since the financial hierarchy can flow either up or down, structures such as GP entities or more complex legal entity structures can be cleanly modeled.
Powerful Performance Fee Calculations
ORE is pre-configured for real estate and distressed asset fund transactions. ORE can also be configured to calculate ANY type of performance fee calculations. The ORE package has successfully modeled complex performance fee calculations, even ones that slice against other fund and investor entities supporting over $30 billion under management.
