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Increasing Role of Centralized Database in PE Fund of Funds Space

Published on January 3, 2017 by Rohit Agarwal

Private Equity (PE) fund of funds plays a significant role in the PE industry. Fund of funds provides a doorway to small investors who cannot invest directly in PE funds. Despite having small commitment tokens, these investors are able to diversify their investments across various asset classes, strategies, and geographical locations by using PE fund of funds. Moreover, fund of funds provides customized account portfolio management services to their investors.

However, providing these services creates a complex situation for fund of funds, as there is a need to manage several things in a go. The biggest challenge faced by fund of funds is managing voluminous data. Some of the primary requirements that need to be met by fund of funds include analyzing track record and performance, creating quarterly and financial reports, managing cash flow, sending/receiving capital calls and distribution notices, and recording the contact details of various management personnel. All these requirements are addressed efficiently by centralized databases that provide a customized platform to fund of funds.

It is great when important information from the centralized database can be extracted with a single touch from a mobile phone/laptop even while on the go and anywhere in the world. In addition, software built in the database helps fund of funds managers analyze big data sets and generate automated dashboards. Moreover, managers can monitor the customized performance of their track record and combine funds, co-investments, and secondary investments at their convenience.

We have a dedicated team of PE analysts that manages the PE database for PE fund of funds managers. Acuity Knowledge Partners has been successful in setting up and managing database from scratch, and helping various fund of funds clients in reducing their overall costs and increasing operational efficiency. We aim to play a big role in the database management space and currently track over 5,000 funds and co-investments globally.


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About the Author

PE and Strategic Research

Rohit has around 10 years of experience across asset management and private equity (PE). His current role involves providing support to alternative asset management teams on salesforce and e-front maintenance, financial reporting, and investment due diligence. Rohit has extensive experience across a broad range of analyses, including financial reporting, industry reports, due diligence memorandum, fund cash flow modeling, track record creation, fund revaluation models, client pitch presentations, quarterly market overview reports, and newsletters.

Prior to joining Acuity Knowledge Partners, Rohit has worked with Kotak Asset Management Company based in Delhi. He holds a Master of Business Administration (Finance) from Institute of Chartered Financial Analysts of India (ICFAI), Gurgaon.

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