How private equity accounting software simplifies UK fund and SPV accounting - London Business News | Londonlovesbusiness.com
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How private equity accounting software simplifies UK fund and SPV accounting - London Business News | Londonlovesbusiness.com
"Private equity firms operating in the UK face a uniquely complex accounting landscape. Between fund structures, special purpose vehicles (SPVs), regulatory requirements and investor reporting, financial management can quickly become overwhelming. For many firms, legacy systems and spreadsheets are no longer sufficient to support the level of accuracy, transparency and efficiency required. As a result, an increasing number of UK firms are turning to dedicated private equity accounting software to simplify fund and SPV accounting while improving control and compliance."
"The complexity of UK private equity structures UK private equity firms typically manage multiple funds, each with its own investment strategies, fee structures and reporting obligations. Alongside these funds sit SPVs, often established to ringfence individual investments, manage risk or accommodate specific investor requirements. Managing these layered structures in spreadsheets can be challenging. Capital calls, distributions, management fees and carried interest calculations all require careful tracking. When handled manually, the risk of errors increases, particularly as transaction volumes grow and structures become more sophisticated."
UK private equity firms typically manage multiple funds and SPVs, each with distinct investment strategies, fee arrangements and reporting obligations. Legacy systems and spreadsheets struggle to handle capital calls, distributions, management fees and carried interest calculations across layered structures. Manual processes increase the risk of errors as transaction volumes and structural complexity grow. Dedicated private equity accounting software maps complex ownership models, supports multi-entity accounting and provides detailed audit trails. Automation and standardised processes reduce calculation errors, improve investor reporting, enhance control and help meet regulatory and compliance requirements for fund and SPV accounting.
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