Private equity investment management, end to end
The operational life of a private equity fund, stage by stage, and what each stage needs from its systems.
What does private equity investment management involve operationally?
Operationally, private equity investment management runs from fundraising and investor onboarding, through capital calls, portfolio monitoring and quarterly valuations, to distributions under the waterfall, investor reporting, tax delivery and regulatory compliance — over a fund life of ten years or more, often across several funds at once.
Raise
Pipeline, data room and diligence; subscription documents, KYC/AML and tax forms; first, subsequent and final closes with equalization; side letters and MFN elections after final close.
Invest
Capital calls sized from commitments and pacing, often bridged by a subscription line; management fees on commitments; deal costs and broken-deal expenses allocated between the fund and co-investors.
Own
Quarterly KPIs from portfolio companies, valuations approved by committee, fee offsets from portfolio-company fees, and quarterly reporting to LPs — increasingly in ILPA format.
Exit and distribute
Realisations run through the waterfall: return of capital, preferred return, catch-up and carry, with clawback and escrow protecting LPs. Distributions are noticed, paid and reconciled; K-1s follow each tax year.
Across the whole life
An audit every year, Form PF and other filings, LP due diligence questionnaires, and the next fundraise — for which the current fund's operating record is part of the pitch.
Questions
How many systems does a typical PE firm use?
Commonly five to eight: accounting, administrator portal, CRM, data room, monitoring, spreadsheets for waterfalls and fees. Consolidation is usually the largest source of efficiency.
Where does FUN/D fit?
Across every stage above, on one ledger.
Want to see this on your own fund?
Name and work email. A person replies within one business day, usually with times for a demo on a structure like yours.
Talk to us
Name and work email. We reply within one business day, from a person.
Sent.
Someone from FUN/D will email you within one business day. If it's urgent, call +1-212-658-0862.