Investment firms have the daunting task of not only making good investments, finding the winners and passing on the losers, but they need to accurately reflect the value of their investments. What’s more, firms need to roll up multiple valuations across an entire fund, add in fee’s and dividends, and project the value of the entire fund. But with several investments in a fund, all with different waterfalls, securities, and ownerships amounts, this can be overwhelming. That is precisely why an automated, cloud-based solution is the best.
What do you use as your Document Management? What is the average time you spend searching for a specific document? Or better yet, how much money do you pay third party advisers to retrieve documents that you can’t find (lawyers, accountants, consultants, etc.)? This becomes even more expensive when a business owner considers selling their company and taking part in a due-diligence process.
Since tax season is behind us, we are glad to inform you that DocDep helped distributing close to 10,000 K1s for our clients with the help of our product Sonar.
Over the past several years, valuations have gone through the roof, which is good if you’re selling a business. This will inevitably hurt private equity firms deploying capital (unless valuations remain at these high levels for several more years). At the same time, LPs are more concerned with the fees being charged by GPs. Funds that have not performed in the top quartile will most likely face two scenarios: raising a smaller fund or reducing their fees (many are shifting toward 1.5/15 model). If GPs are really struggling to raise money, they may need to both cut fees and raise a smaller round.
That question is impossible to answer. Put simply, if we knew what mistakes caused startups to fail, we could easily avoid them. It’s like asking what makes startups succeed. If there was a recipe for definite success, we’d all follow it and build great companies, right?