Private equity portfolio monitoring does not have to be a tedious and labor-intensive process. Nor do you have to settle for outdated methods of monitoring portfolio performance that lead to poor visibility and frustrated investors.
You can make the process easier by adopting the NetSuite enterprise resource planning (ERP) software system. Find out why we believe NetSuite is the best portfolio monitoring solution for your firm.
Dangers of Poor Portfolio Visibility
When portfolio visibility is poor, the following undesirable results may occur.
Tedious Results Sharing
Your investors expect you to keep them in the loop, but using older software makes sharing results hard. As a result, your firm may be unable to provide investors with updates as often as they would like. Over time, their trust may weaken, which makes it hard to grow your firm.
A lack of clarity will not just affect current investors, either. Interested investors may also be less likely to partner with your firm. The bottom line is that you need a way to easily share results with the people you serve.
Time-Consuming Report Generation
If it takes days for you to develop performance reports, it will be tough for your firm to scale and take on new investors.
Outdated reporting tools and methods can also lead to compliance issues. When auditors request reports, your firm must be able to provide them. If you can’t, you could face harsh penalties in today’s highly-regulated PE environment.
Inefficient Decision-Making
You need to use past portfolio performance to guide your future decisions if you want to deliver for your investors. If visibility is low, you will have two choices.
– The first option involves making decisions without analyzing performance data, but that can lead to mistakes and diminish each investor’s return on investment (ROI).
– The second option involves slowing down your decision-making process. Doing so will allow you to make more calculated investment choices, but you may miss out on brief chances to generate revenue.
Why NetSuite ERP for Private Equity Portfolio Monitoring?
NetSuite is a dynamic ERP solution with a variety of modules that each include task- or industry-specific tools. For instance, it includes accounting and HR modules. The module setup of NetSuite allows you to tailor it to the needs of your PE firm.
In addition to being versatile, the system is quite scalable, meaning it can grow with your firm. These traits make NetSuite ERP the clear choice for private equity portfolio management.
In addition, by using NetSuite to manage your portfolios, your firm can achieve the following benefits.
Increase Visibility
NetSuite ERP brings all data into a central location, and the database becomes your single source of truth for portfolio management:
- Access real-time information about each portfolio, including fund performance.
- Share relevant information with investors.
- Analyze the data collected in the system.
Replacing outdated, siloed software with NetSuite will create benefits across your entire firm. Team members can access critical data they need to serve investors, which will improve overall efficiency and help your firm max out productivity.
Keep Investors in the Loop
To build trust with investors, you must do two things very well:
- You must deliver a strong ROI.
- You must keep them up to speed on portfolio performance.
NetSuite helps you achieve both objectives. NetSuite’s automation tools make it easier to share information with investors.
Your team can provide reports at regular times without taking away from your day-to-day duties. Upgrading your reporting capabilities with NetSuite will help you retain existing investors and attract new ones.
Guide Decision-Making
As you know, the world of private equity is very competitive, so if you want to continue thriving, you need a way to inform your decision-making processes. NetSuite does exactly that.
NetSuite can help you weigh the impacts of your investment decisions. Its data management capabilities can also assist with performing due diligence. You can use the software system to track deals, take well-thought-out risks, and deliver value to investors.
Consolidate Your Data
If you are using outdated software, your data is likely spread across multiple apps and spreadsheets. Even if your team is very organized, such an approach makes it easy to lose track of key documents.
NetSuite makes that time-consuming process a thing of the past by moving all of your portfolio data to one place, simplifying portfolio management. Creating a single source of truth also makes it far easier to maintain a posture of compliance.
Maximize Your NetSuite ROI with Finlyte
NetSuite’s private equity portfolio monitoring tools are a game changer for your firm on its own. And you can get even more value out of NetSuite through our proprietary ION implementation solution.
ION was created specifically for the needs of the investment community. This solution enables our team to efficiently and intelligently set up NetSuite according to the unique needs of your PE firm.
Learn more about the power of NetSuite + ION. Schedule a consultation with our team to learn about the long-term benefits of utilizing NetSuite. Let’s discuss how Finlyte can help you gain clarity around portfolio performance.
