Fund Administration
Powerful, Flexible Capital Reconciliation
PEO's capital reconciliation view consolidates the equity view into an interactive matrix. Automatically calculate management fees and view full granularity for any item in the capital reconciliation. 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. PEO's capital reconciliation can target explicit currency runs and selected valuation methods. For instance, you can target EUROS with an EVCA valuation model.
Scales from Vanilla to Complex Structures
Fund type structures are modeled to scale from generic to the most complex structures. Tools include customized transactions, waterfall rules processing, dynamic and static sharing percentages, dynamic capital account books, vehicles, and more. PEO allows you to efficiently handle allocations, distributions, capital calls, and payments in kind. Elegantly handle opt-out scenarios, incorporating multi-tier drill-down for instant asset or equity snapshots. PEO is the ideal solution for private equity closed end funds that deal with illiquid assets. However, it also robustly handles open end funds using units with mutual ease.
PEO incorporates the ability to maintain global-level vehicles as entities that can span across multiple funds. These vehicles make it possible to easily handle opt-out situations. Each vehicle/fund intersection is handled as a mini-fund and provides the ability to view capital reconciliation on demand by vehicle or overall fund.
Integrated General Ledger
Accounting entries and transactions are firmly linked in the PEO 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. PEO has the ability to produce reports including the trial balance, income statement and balance sheet for a designated fund legal entity.
Waterfall Rules Engine & Dynamic Sharing Ratios
PEO features a powerful waterfall rules engine that allows the business object layer to access conditions during capital reconciliation and dynamically allocates a waterfall amount, or 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. Sharing percentage ratios can be set up to calculate automatically while maintaining full history. This allows PEO to handle the elements of closed end, or open-end funds, with mutual ease.
Pass-Thru Processing
Using PEO, a transaction 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.
