Transform financial reporting and planning with real-time visibility into the business drivers

Background

In the private equity realm, our client is a trailblazer, pioneering a digital secondary market for private market funds. Their immediate objective was to replicate their financial reports within Pigment for better budgeting and actuals consolidation. They adopted a collaborative approach, co-building with Keyrus and Pigment experts to not only replicate but enhance their financial framework. The goal was not just compliance but strategic empowerment through accurate data analysis. By providing real-time visibility with Pigment, they aimed to gain deeper insights into their business drivers. This initiative underscores their commitment to innovation and adaptability in a rapidly evolving industry, where data-driven decision-making is paramount. It's a journey towards a future where data isn't just numbers but a strategic asset guiding every move.

Challenge

Utilizing spreadsheet modeling for Assets Under Management (AUM) and revenue planning posed significant challenges for our client. The complexity of their financial operations, especially within the private equity domain, strained conventional spreadsheet capabilities. Dealing with large volumes of data required extensive manual reconciliation efforts, consuming valuable time and risking errors. Real-time collaboration across the business added another layer of difficulty. Coordinating between different teams and departments working on financial planning and reporting tasks simultaneously made maintaining data accuracy and version control a constant struggle. However, the most formidable challenge came with financial consolidations and eliminations. Handling these critical processes within spreadsheets proved excessively burdensome and prone to errors. Managing data from multiple sources and ensuring meticulous reconciliation posed a significant risk of inaccuracies, jeopardizing the integrity of the entire financial framework.

Approach

Our engagement centered around a co-build implementation approach, leveraging the strengths of the client’s resources and Keyrus team members. The client’s resources took ownership of project coordination, requirements gathering, design, modeling, data management, testing, and end-user training. This comprehensive involvement ensured that every aspect of the project, from inception to execution, was meticulously managed and executed. Keyrus team members played a pivotal role in driving project management, prescribing the most appropriate application architecture, and offering support for advanced Pigment modeling and complex requirements. This expertise and guidance ensured that the implementation process remained on track and aligned with the project objectives. Throughout the journey, Pigment provided dedicated product support, ensuring that any challenges encountered were swiftly addressed. Their commitment to ongoing customer success was evident, offering reassurance and assistance whenever needed. This collaborative approach between the client, Keyrus, and Pigment laid the foundation for a seamless implementation process, driving towards the achievement of our client's goals with confidence and efficiency.

Key results

Benefits

The implementation of this solution yielded a myriad of benefits, transforming the financial ecosystem for our client in the private equity industry: - The establishment of a robust data hub ensured data quality across the board. By centralizing data management processes, our client could trust the integrity and accuracy of their financial information, laying a solid foundation for informed decision-making. - The introduction of Cohort AUM planning, revenue planning, and variance reporting to actuals provided unprecedented insights into performance metrics. This enhanced visibility empowered our client to identify trends, optimize strategies, and capitalize on emerging opportunities with precision. - The ability to plan SG&A and HR activities within the same platform streamlined operational efficiency and resource allocation. With all key functions integrated seamlessly, our client could align their financial and human capital strategies seamlessly, driving towards overarching business objectives. - The consolidation and intercompany eliminations from four data sources facilitated comprehensive financial reporting. This consolidation enabled our client to generate accurate reports on actuals, forecasts, and budgets for the P&L, Balance Sheet, and Cash Flow, both in local and reporting currency. This holistic view of financial performance empowered strategic decision-making and fostered investor confidence. Our client achieved a paradigm shift by consolidating these functionalities into one centralized platform. The benefits reaped from this transformation extend beyond efficiency gains to strategic agility, enabling our client to navigate the complexities of the private equity landscape with confidence and clarity.

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