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Investment Valuation and Portfolio Reporting Model

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A UK-based Private Equity firm (listed on London Stock Exchange) that takes equity and debt positions in UK businesses looking to develop an organized and well-functional valuation and reporting model to monitor each investment made across all the funds in the portfolio.

Problems

Multiple funds and fund managers within the group used an Excel tool to evaluate the group’s overall exposure across investments. This was done by calculating valuations and updating key data, including Cap Tables, on a quarterly basis. However, several challenges hindered the efficiency and accuracy of the tool:

  • The Excel tool had disorganized inputs with no flexibility to track historical updates and prior valuation.
  • Every investment had its own worksheet, but the formats and calculations were inconsistent, making it impossible to produce the consolidated investment report.
  • No clear process to input investment data only once, leading to frequent data mismatches between the Excel tool and QuickBase (a cloud-based platform used to manage the investment data).
  • In cases where multiple funds from the group invested in the same company, the Excel tool failed to provide visibility into other invested funds and their respective valuation methods, making it difficult to accurately calculate exposure.

Solution

FAB designed an Excel tool to be used by all the Fund Managers during every quarter to do the valuation. The Excel tool had:

  • Organized workspace for all the investments with consistent layout with the flexibility to track historical updates and valuation done in prior quarters.
  • Functionality to update all the data tabs from QuickBase on a single click using Power Query and thus saving enormous time and reducing chances of errors.
  • A separate worksheet to review the cap table for any company in the fund by fetching the latest data from QuickBase.
  • Standardized investment template to include a new investment in the fund by just updating the investment ID, with rest of the info getting auto populated.
  • Multiple reports with all the required info such as valuation method used, valuation during last quarter, whether the investment is realised and many more.
  • A dedicated worksheet capturing all the latest data updated in the tool to be uploaded to QuickBase, which can then be used in next quarter to compare.

Client Benefits

  • A streamlined process to ensure data entry is done only once, integrating the new Excel tool with Quickbase. This enabled seamless data transfers between Quickbase and Excel.
  • A standardized valuation template for all Fund Managers with consistent outputs and analysis, significantly minimized the risk of errors and brought down updating time from several hours to just minutes.
  • Fund Managers now have clear visibility into the valuation methods across funds, allowing for side-by-side comparison for the current and previous two quarters. This has led to more accurate portfolio reporting and improved decision-making.

Client Testimonial

“As a private equity firm, managing multiple investments efficiently and accurately is critical to our success. FAB delivered an exceptional solution that transformed the way we handle our investments and reporting.

The comprehensive reporting tools provided by FAB have enabled us to easily access all relevant investment data. Their continuous support in maintaining the developed tool and conducting regular quality checks has strengthened our confidence in the system.

We are extremely satisfied with the outcomes and would highly recommend FAB for their outstanding work, meticulous attention to detail, and ability to deliver tangible, real-world benefits.”

Investment Director

Problems