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EPM for Private Equity
Unlock the full potential of your portfolio with EPM—delivering actionable insights for optimizing returns, managing risk, and driving growth across your investments.
What is EPM for the Private Equity Industry?
Enterprise Performance Management (EPM) in private equity helps firms optimize portfolio management by streamlining financial tracking, performance analysis, and decision-making. EPM integrates data from multiple portfolio companies, providing real-time insights into value creation, cash flow management, investor returns, and risk mitigation. By leveraging EPM, PE firms can ensure accurate tracking of key metrics such as IRR, carry calculations, and investor reporting, enabling them to drive growth, optimize returns, and meet stakeholder expectations.
What are the Business Challenges in the Private Equity Industry?
Value Creation
Value Creation
Tracking operational improvements and growth strategies across multiple portfolio companies is essential but complex.
Data Integration
Data Integration
Siloed systems make it difficult to consolidate data for consistent performance measurement, investor reporting, and strategic alignment.
Speed of Decision-Making
Speed of Decision-Making
Slow reporting processes delay critical decisions, leading to missed opportunities in managing portfolio companies and optimizing returns
Cash Flow Management
Cash Flow Management
Maintaining liquidity and managing working capital across portfolio companies is challenging, especially with varying investor timelines.
Investor Returns and Reporting
Investor Returns and Reporting
Firms must accurately calculate and report on key metrics such as internal rate of return (IRR) and carried interest (carry), which are essential for meeting investor expectations.
Exit Strategy Optimization
Exit Strategy Optimization
Preparing companies for sale or IPO requires financial and operational efficiency, along with accurate forecasting of exit valuations.
Regulatory Compliance
Regulatory Compliance
Complying with diverse regulations across jurisdictions is resource-intensive and prone to errors, especially in managing investor reporting.
Technology Integration
Technology Integration
Measuring the impact of technology investments on portfolio performance is critical for success.
What's Getting in the Way for the Private Equity Industry?
- Data Integration and Quality Challenges
Inconsistent data from different portfolio companies limits insights, delays reporting, and complicates tracking of investor returns and carry calculations.
- Timely and Accurate Forecast Completion
Spreadsheet-driven processes slow down forecasting and IRR calculations, limiting agility in decision-making and affecting investor reporting.
- Regulatory Compliance
Manually managing compliance across multiple jurisdictions is error-prone and time-consuming, especially for investor reporting requirements.
- Inefficient Spreadsheet-Driven Processes
Over-reliance on spreadsheets for financial tracking, carry calculations, and performance reporting introduces inefficiencies and limits scalability.
What are the Key Use Cases for EPM in the Private Equity Industry?
Performance Monitoring and Reporting
EPM provides real-time insights into portfolio company performance, investor returns, and IRR calculations, driving better decision-making.
Scenario Planning and Forecasting
EPM enables advanced forecasting, including IRR and exit scenario analysis, to guide value creation strategies and successful exits.
Cash Flow and Liquidity Management
EPM optimizes cash flow forecasting, helping firms manage liquidity across portfolio companies while ensuring accurate cash distributions to investors.
Investor Reporting and Carry Calculations
EPM tracks performance metrics, calculates carry, and automates investor reporting, ensuring transparency and accuracy in meeting stakeholder expectations.
Regulatory Compliance and Reporting
EPM automates compliance reporting, ensuring accuracy and reducing the administrative burden for both regulatory and investor obligations.
Technology Solutions
Our Team
Mitch Max
Senior Partner, Head of EPM Practice, North America
Paul Petersen
Partner, Head of EPM Practice, Australia
Michelle Sutherland
Senior Partner, Head of EPM Practice, EMEA
Steven Schwarz
Partner, EPM Financial Services and Innovation, North America
James Bryson
Partner, EPM Financial Services, EMEA
Kushal Gulati
Partner, EPM Sales Performance Management, North America
Joe Corlett
Partner, EPM Real Assets, EMEA
Axel Henry
Partner, EPM Private Equity, EMEA
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