PFPC, a subsidiary of The PNC Financial Services Group, began using Investran, an accounting and allocation system developed by Financial Technologies, Inc.
According to a PFPC press release, its new system will help clients reduce risk and be able to slash costs of investing in the burgeoning global private equity market.
Sometimes difficult to access, the private equity markets are now being tapped by investors through a variety of vehicles including closed-end funds, fund of funds, and through private banks.
Because of their complex nature, however, costly and error-prone manual recordkeeping and accounting can prohibit many financial services companies from taking part in the private equity arena, PFPC said.
By adding Investran to its alternative investment servicing business, PFPC now offers clients specialized features that include:
- flexible reporting at fund, underlying fund, portfolio and investor levels
- customizable, built-in general ledger
- calculation of complex allocations
- transaction and partner information
- tracking of the internal rate of return and other measures at the fund, deal, and investor levels
- tracking of capital commitments and subscriptions
- calculation of management fees, incentive fees, and maintenance of waterfall calculations
According to PFPC, private equity has grown from a cottage industry to a mainstream institutional asset class that is expected to reach $1 trillion by 2006.