The client, a private equity firm with over $9 billion in capital commitments and operations in three separate locations, faced challenges meeting investor reporting requirements, was unable to track investments through their lifecycle in a uniform manner, and faced data governance and management issues. As the private equity fund sought investment capital from institutional investors, they faced the increased need for strict financial controls, the ability to produce timely and accurate financial reports, and the ability to closely track investment performance on a uniform basis across all three locations.
An in-depth review of the current processes and financial controls was performed across all three divisions, a current state model and financial control inventory was developed for each. All current investor reports were also inventoried along with reporting requirements for potential investors. Finally, the investment lifecycle was reviewed, specifically tracking the measurement of investments across all divisions and the technology used to complete this process.
Based on the findings, we created one process for the evaluation of potential investments, due diligence, acquisition, management, and finally disposition of an asset to be used by all three divisions. This process was flexible enough to recognize the intangible nature of investments while still adhering to a uniform investment criteria. Financial controls were documented, and a test plan was created and implemented to ensure controls were in place and functioning across all divisions. By gathering reports from all divisions, we were able to create a standard report set and put in place an ad-hoc reporting function to create and manage reports across all three divisions. New reports based on investor requirements were also created. Finally, we produced a future state process to measure and track investments in a uniform manner across all divisions. We documented requirements for an investment tracking software package and developed an RFP for the future software selection process.