Private Equity Portfolio Monitoring Can Be Achieved with VDR Software

The development of methods for assessing the private equity portfolio monitoring is based on the methodology for the valuation of their business.

The Role of Private Equity Portfolio Monitoring in Business

Direct investments are the most important factor in ensuring the economic growth and socio-economic development of the country. The inflow of direct investment into the national economy from both the domestic and the world capital market depends on a complex of macroeconomic and geopolitical factors, the degree of development of the infrastructure of the direct investment market in the country, the efficiency of the institutions for attracting direct investment and the legislative framework for protecting the rights of investors.

It should be noted that a special role in the private equity portfolio monitoring is played by private equity funds with state participation, in the practice of which co-financing of funds’ investments in portfolio companies is common: part of the funds is contributed by the fund itself, part of the funds is attracted from investors, including foreign ones. Most often this applies to infrastructure projects of national importance, corresponding to the strategic goals and objectives.

Opportunities for increasing the efficiency of private equity portfolio monitoring can be significantly expanded by informing financial market participants about the efficiency and effectiveness of their activities, the growth of the market value of their business, and managed assets, even in the context of stagnation of the economy. For foreign investors, information is important about the effectiveness of funds, their specialization, and the quality of asset management.

Private equity portfolio monitoring with VDR software will assist private equity firms in reporting: cash flow management, TVPI (total value to invested capital), internal rate of return (IRR), public company reporting, cash flows, stock market benchmark, residual value, significant ESG impact, acquisition history, the impact of debt financing, portfolio strategy benchmark, and more.

The Valuation of the Private Equity Portfolio Monitoring and Its Main Characteristics

The valuation of the private equity portfolio monitoring with virtual data rooms and the assets under management of the private equity fund, indicators of the fund’s efficiency and performance are fundamental factors for future investors. In science, there are practically no developed guidelines for assessing the market value of the business of a management company and managed assets of private equity funds, in connection with which research aimed at improving assessment methods, as well as recommendations for assessing the effectiveness and efficiency of assets and the management company, is becoming especially relevant. private equity fund.

Get private equity portfolio monitoring with the virtual data room that benefits the entire firm:

  • Improving business strategy.
  • Implementation of management experience.
  • Promotion of production technology.
  • Expansion of distribution.

A key factor in successful trading in the private equity portfolio monitoring made on a good data room review. Financial instruments are one of the riskiest and potentially one of the most profitable investment objects. Risk is the price to pay for potential profit. Risk control ensures the stability of the company and the results of investment activities. Depending on the investment declaration and the type of investment strategy, we divide asset management strategies into portfolios with no risk level restrictions (such as, for example, index strategies) and strategies with a predetermined maximum allowable loss level. Monitoring of portfolios and asset management strategies for compliance with the agreed risk levels and compliance with investment declarations is carried out by the risk manager on an ongoing basis and is a guarantee of the fulfillment of our obligations.