Your private equity firm specializes in helping new and growing businesses succeed through an infusion of essential capital. As is the case with all businesses, your firm may need extra support with its operations and processes as well. With a closer look at private equity software, you may see that this type of solution provides your firm with the full support that it needs across all critical processes.
Sourcing New Opportunities
Your business makes money by strategically giving money to other businesses. The businesses that you fund are understandably carefully vetted, so the first step in your business cycle is to identify quality deals that deserve your attention. Some software programs that are designed specifically for private equity firms enable you to gather details about new opportunities in one convenient location for faster and easier analysis. More advanced solutions may have an investment structure mapping feature. For example, it may help you to better identify who the primary players are and how cash flows throughout the operation that you are analyzing. With several software solutions available, define your need for specific features before finalizing your software purchase.
If your private equity firm struggles with portfolio management or if you spend too much time and energy on this aspect of operations, using a private equity software solution makes sense. Depending on the solution that you select, you can track and document portfolio activity. You may also use this data to compare investments, complete forecasts and improve budgeting. Regardless of the current system that you use, you may be surprised by how much time and energy you can save by upgrading to a new software solution.
Internal Money Management
Your business’s finances must be well-managed at all, but this can be challenging when you are handling huge accounts payable and accounts receivable balances. Improved portfolio management technologies allow you to step up budgeting efforts, but an effective software solution may do more than that. It could also provide exceptional accounting and financial administration features that streamline operations in critical ways. For example, it may include a general ledger feature, allow you to plan for drawdowns and capital calls and more.
Private equity firms must analyze and manage large deals, and they must make tough financial decisions on a regular basis. More than that, they must actively and successfully manage their business’s finances and their own pool of investment capital. You cannot afford to make a simple error or to improperly analyze new or existing deals. Thankfully, software solutions are available to improve your firm’s efforts in these and other areas.