Jan 29, 2021

Overview

The fund manager manages more than USD 30 billion in AUM of private equity and private debt investments. Administration of its private equity program had grown increasingly complex over time, creating increasing risk to the investment portfolio. The manager had investments coming through funds-of-funds, limited partnerships, and direct investments.

The manager asked Cutter Associates to help it replace or enhance its existing private equity systems and processes to support its desired target state capabilities.

The client initially required a single solution to meet all of its needs for managing private equity portfolios. But after analyzing the manager’s extensive data collection needs and its internal capabilities for accounting and data collection, the client decided to initiate two searches in parallel ─ for both a private equity portfolio management system and a private equity data collection and service provider.

Cutter Solution

To come up with a list of viable vendor solutions, we re-examined relevant Cutter Research reports as well as collateral we produced in prior vendor selection engagements. Leveraging Cutter’s experience and our existing RFP library, we created two new RFPs for our client. Both RFPs included a set of minimum requirements for responding, business and technical requirements, evaluation criteria, and an overview of the target state operating model, incorporating both vendor solutions. We provided active inputs and recommendations through the different stages of RFP evaluation, shortlisting vendors for demonstrations, creating detailed vendor demonstration agendas, and evaluating vendors during and after demonstrations.

As a result of this process, Cutter identified the most appropriate private equity portfolio management system and the most appropriate private equity data collection and service provider.

  • Cutter provided further assistance by taking the following steps:
  • Creating a roadmap with a recommended release structure using the two vendors selected
  • Assessing historical data and initiating the data mapping process, setting the foundation for historical data conversion
  • Assisting with change management processes, defining target state processes, and changes in stakeholder roles and processes

With Cutter’s help, our client achieved the best combined solution to meet its private equity processing and portfolio management needs. The solution increased efficiency, enhanced analytical capabilities, improved monitoring and control, and improved management of private equity portfolio data and activity. Cutter’s solution also enabled our client to leverage high-quality information with increased transparency and supporting better risk.