Aggregating and reconciling data from private funds is often a tedious, manual task of compiling and entering investment data from general partner statements. Not only is this work time consuming and inefficient, but it also leaves room for errors and slows down the close process.
That’s why Clearwater developed a private funds data aggregation service that automates this process using advanced document extraction technology through machine learning. This service helps limited partners gather, extract, reconcile, and report on their positions in draw-down and hedge funds.
What does that mean for you? It means you can offload the document retrieval, normalization, aggregation, and reconciliation of the transactional and statement data provided by the general partner to the Clearwater teams. Your reconciled data then flows to the consolidated book of record accounting, performance, compliance, and regulatory reporting this is delivered by the Clearwater system.
The private funds aggregation service provides five key benefits to your organization:
1. Reduce Manual Effort
Save hours in manual processes and free your employees to do what they do best. Because everything from document retrieval to reconciliation and reporting is automated, employees no longer need to retrieve statements from web sites or email, enter the data in spreadsheets, or reconcile NAV and commitment values.
2. Deliver Data Faster
Our internal processing checks investment sites daily for new statements. Once a new statement has been identified, it retrieves the statement, extracts the data, and uploads the data to our site where it is aggregated, normalized, reconciled, and delivered to the reporting site. If a break in the aggregation, extraction or reconciliation is identified, specialized teams within Clearwater are available to address the concern and communicate with your Clearwater team.
3. Facilitate a More Efficient Close
With Clearwater’s flexible, knowledge-date-based reconciliation tools, you can see the data that supports your lockdown even after the general partner provides late information. New balances and activity, when provided, are automatically included in calculations and reconciliations while maintaining historical records. NAV and commitment balances are dynamically calculated when transactions mid quarter are received, ensuring that balances are as up to date as possible.
4. Automate Book of Record Performance and Accounting
Clearwater’s private funds data aggregation service—when paired with our world class multi-asset, multi-currency reporting suite—provides book of record accounting, regulatory, compliance, and performance services. With support for multi-basis, equity method elections, your general ledger entries are automatically generated. IRR and limited partnership ratios can be calculated for easy internal reporting and performance measurement.
5. Support Multi-Asset Class Reporting
As Clearwater employs a similar automated aggregation and reconciliation process on the public portfolios, organizations can see their entire portfolio holdings, updated daily, in the Clearwater solution. This allows for vastly improved transparency, access to data, and updated calculations for portfolio performance, investment policy compliance, book of record or shadow record accounting, and risk exposure/concentrations tracking across the entire portfolio. The data set in Clearwater can be viewed at the entire portfolio level or any way you want to slice and dice the portfolio to analyze data.
To learn more about Clearwater’s private funds aggregation service and what it can do for your organization, schedule a personalized meeting with a Clearwater solutions consultant today.