We've introduced hypothetical waterfall functionality into our system to better support the quarterly financial reporting process. Users will now be able to enter the accrued net asset value for each fund entity, and have the system calculate a hypothetical waterfall, including a detailed breakdown on both actual and hypothetical carry paid quarter-to-date, year-to-date, and inception-to-date.

Before running a hypothetical waterfall, users must define a calculation with a Classification = Net Asset Value (note that this calculation can be named anything so long as it has the NAV classification).

Users will now be able to see a new Financial Reporting tab for the fund family in the sidebar nav. From this tab, users can create a draft hypothetical waterfall by selecting Run Hypothetical Waterfall, which will prompt users to enter the components of each entity’s hypothetical liquidation values (based on the fund family’s definition of how NAV should be calculated) to get to a total hypothetical NAV.

Once saved, the user can click into the draft hypothetical waterfall. The hypothetical waterfall consists of three components:

Investor NAV: allows users to see a quarter-to-date, year-to-date, and inception-to-date investor-by-investor breakdown of the current period’s ending NAV (before and after the hypothetical waterfall’s reallocation).

Waterfall Details: this view provides insight into what is actually happening in the various steps of the waterfall through three different tables. The first table pulls information from the previous period’s hypo waterfall to present the change between the prior and current period at each step of the waterfall.

The detailed breakdown table allows users to expand each relevant tier of the waterfall to understand the hypo calculations performed.

The final table provides users with both the actual and hypothetical carry paid QTD, YTD and ITD.

Performance: gives users insight into key fund performance metrics, including fund and investor level IRR.

After reviewing the details of the waterfall, the user can either finalize the hypothetical waterfall (to move it into the complete state), or delete the draft hypothetical waterfall.

Distributions are now run at the fund family level (similar to capital call flow). Previously, distributions occurred at the fund level, which didn't allow for auto-allocating a distribution at the fund family level across funds.

Previously, when creating a Capital Call for Management Fees, the system did not provide enough visibility into fees remaining to be called for historical quarters, or how those remaining fees to call for were being calculated.

We've introduced an updated workflow that takes users into a more detailed screen as they’re selecting historical quarters to call fees from to provide with more insight into how fees available for being called are being calculated per quarter.

Previously, when calling for management fees during a Capital Call, users were only able to call for management fees net of offsets, fee waivers and fee breaks. Now, users will be able to configure the fund family to instead calculate management fees as gross when performing a capital call for management fees if desired. The default configuration will be to call for net fees.

Configuration

At the fund family level, under Fees configuration, users can now define under management fee capital call methodology if the fund family calls for net or gross fees.

The experience for calling for gross fees will mirror the experience for calling for net fees, but the fee amounts available to call for will not be reduced by offsets, fee waivers or fee breaks.

We introduced a new Management Fee report to provide users with an investor-by-investor daily management fee breakdown (including fee breaks and offsets). Any user can run this report from the reporting tab of the application.

Users can filter on the below options to tailor the report to their needs:

We introduced a new Transaction to provide users with the ability to easily export the comprehensive set of system transactions (of all types).

Users can filter on the below options to tailor the report to their needs:

The system now supports including credit facility transactions in a fee basis calculation. When calculating the basis for a period, the system will allocate out the credit facility to LP’s and include it in their fee basis. To use this functionality, users can select credit facility transaction codes when defining a fee basis category.

Configuration

First, if your credit facility draws from a lower level entity, you’ll need to add a commitment between the funds accepting LP’s into the lower level entity. You can leave the commitment amount as $0, as this is automatically calculated and updated when new investors are closed in.

For best visibility into the calculation, create a new fee basis category that is comprised of the credit facility codes desired.

Make sure to include this new category as part of your fee basis calculation.

Now, when posting a fee during the invested period, you will see your basis split out to include your two categories and it will include your credit facilities.

We’ve made several design and user experience improvements to the credit facility functionality, most notably that tranches are now able to be properly sorted by the date the tranche was created.

We’re updating all of our tables across the application the make them visually cleaner and easier to use.

Simple read-only tables are being updated with small but impactful visual changes (such as smaller text, less padding, etc.). Interactive tables are receiving a more meaningful update for a better user experience in a few notable ways:

Examples

The customer dropdown in the top right of the application now includes search functionality to make it easier for those working across many instances to quickly jump between desired instances.