IK Business Case
In 2006, IK began the search for ways to streamline and enhance the reporting process between the various elements of the partnership’s management structure and the preparation of key high-level information from portfolio companies. There were two key drivers: firstly, a desire for greater efficiency, uniformity and frequency in the reporting process; and secondly, an expectation that there would be greater demand in future from LP investors for transparency in the performance of portfolio companies. This secular change in the culture of private equity investment needed a proactive, innovative response. In addition, IK wanted greater transparency internally as part of a continuous drive for performance improvement.
IK needed an innovative software partner able to deliver a cost-effective solution to this increased need for agility, at a time when market choice was limited and existing solutions were deemed prohibitively expensive.
Prior to working with Preqin Solutions, formerly Baxon Solutions, IK’s information-reporting process relied heavily on the exchange of Excel files between IK fund admin, IK deal teams and portfolio companies. This delayed the approval process and often led to tight deadlines ahead of distribution of the material, which was incompatible with the desire to move to monthly reporting and the more transparent and consistent approach across the firm for which IK was striving.
IK’s decision to seek a single information-reporting solution for portfolio management occurred at an early stage in the private equity software market. As the Preqin Solutions software was still at an early stage of development, IK Investment Partners was able to benefit from the opportunity to participate in the software development process and help determine how the product evolved while at the same time securing a cost-effective solution.
The software allowed IK to move smoothly from quarterly to monthly reporting by providing portfolio companies with a straightforward mechanism to report to their respective deal teams and handle queries and adjustments, and ultimately accelerating the reporting cycle.
The production of flash reports and other analyses became easier and more intuitive, particularly where data or reporting anomalies might occur between companies in the portfolio as a result of different reporting schedules.
“I like the fact that we can download the reports into Excel – it makes my life easier. The process of running reports in the console is quick and you have got more flexibility, where you can actually select which months and funds you want to report on rather than extracting and collating various pages”. Paula Savage – IK Senior Portfolio Manager
- Created unified and transparent data warehouse
- Improved data consistency, reduced errors and data cleaning
- Enabled sign-off from executives while on the road
- Supported acceleration in reporting cycle from 35-45 days to 25-30 days
- Accelerated creation of flash reports and increased visibility of adjustments
- Smoothed transition from quarterly to monthly reporting
- Streamlined performance benchmarking and analysis by geography
- Helped to foster shared performance culture
- Created verified reference point for auditors
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