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Private equity reporting - ready for open waters - Invest in technology - EY - United States

Private equity reporting - ready for open waters?

Invest in technology

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The biggest challenge for many finance, operations and compliance executives is convincing the management team and the founders of the need to invest in greater technology.

Until recently, firms have used basic spreadsheet applications and off-the-shelf private equity packages to navigate and stay afloat. To prepare for SEC registration, more timely and effective financial reporting to investors and the next phases of ILPA guidelines, an integrated data enterprise system will become increasingly critical.

The biggest challenge for many finance, operations and compliance executives is convincing the management team and the founders of the need to invest in greater technology to support the accounting and reporting process.

Important reasons for technological investment include:

  • Account integrity. The more time spent on tracking and posting economic and accounting events using Excel or other end-user computing, the greater the risk of error and backlog of work. Private equity companies with alternate portfolio strategies typically shift this effort and accounting onto investment accounting applications.
  • Improved investor responsiveness. Private equity firms must report information to a broad set of internal and external audiences. Reports will vary from audience to audience and may draw upon different accounting techniques or bases, or different combinations or the splitting of accounts to satisfy line-item requirements, and will require a broader set of unstructured, qualitative commentary that must be stored and reused depending on the audience.


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