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"But... What About The Data?"
Dec. 21, 2020
Forward compatible data requirements for asset owners and asset managers investing in funds of private companies.
 
 
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Sheridan Porter
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One of the most common questions I am asked by prospective clients is "but... what about the data?" This post answers that question with clarity for LP investors.
For theoretical context, the elemental data of private investing is defined as:
  1. The accounting quantities of the underlying 'target' assets.
  1. The accounting and holdings quantities of the investment partnership (fund).
 
 
 
 
Datasets built around fund level cash flows are insufficient to meet the operational and strategic needs of LP investors.
* LP investors include asset owners and asset managers.
Combined, these data form a pathway of facts connecting the asset owner to the underlying assets. Datasets built around fund level cash flows do not achieve this connection and already do not meet the operational and strategic needs of investors.
 
 
Asset owners may understand the need to modernize their private investment data in a general sense. But, they may have questions about *what* data is needed to provide the level of transparency and instrumentation they need to compete.
Categorizing Your Dataset
It is helpful for LP investors to begin by assessing their current dataset. We categorize datasets into three classes, where Class I describes most LP investors currently. Class III data provides the most benefit because it supplies scientific measurement tools that enhance investment operations and the LP's contribution to returns.
FEV Analytics has unique insights into private asset data, and can help you start building this essential strategic asset.

 [SPECIFIC TO LP] 
 Cash Flow Data:
   Currency
   Primary Attribution (Call/Distribution)
   Secondary Attribution (e.g. ROC, Ord Income, etc.)
   Holding and Date Specified Flows
 Holdings Data:
   Fund NAV
   Stake in Fund (%)
   Stake in Asset (%) (e.g. co-invest)

 [GENERAL TO FUND] 
 Cash Flow Data:
   Currency
   Primary Attribution (Call/Distribution)
   Secondary Attribution (e.g. ROC, Cap Gains, etc.)
   Holdings Specified Flows
   Date Specified Flows
 Holdings Data:
   Schedule of Investments (Company Names/IDs)
   Sub-Industry
   Geographic Location
   Entry Date
   Exit Date
   Fund NAV
   Stake in Holding (%)
 Holdings Performance Data:
   Valuations
   Revenues (entry, quarterly TTM/annual, exit)
   EBIT/EBITDA (entry, quarterly TTM/annual, exit)
   Total Debt (entry, quarterly/annual, exit)
   Entry and Exit Valuations