As EY identified, growth represents the third major theme shaping the PE landscape in 2025, following infrastructure investments and the more focused implementation of AI. EY reports that PE firms will drive growth through multiple operational improvements such as enhancing their capabilities to share accurate, data-driven results with limited partners and other stakeholders. In November 2024, PE-focused financial consultancy EdgeWork Capital similarly recognized enhanced investor relations and transparency – through access to real-time data and performance dashboards – as one of several important ways digital transformation can help PE firms build investor confidence and strengthen stakeholder relationships.
To unlock this growth potential and gain competitive advantage, forward-thinking PE firms must master three critical capabilities:
01 Gaining clear, up-to-date overviews of fund holdings, including values and simple performance metrics
It is essential to have a comprehensive list of a fund’s holdings, along with each portfolio company’s current value and performance to date.
Creating such a list with a spreadsheet, however, is far from simple. Doing so typically involves a significant amount of manual data entry, which is prone to human error.
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On the other hand, a sophisticated digital platform like Altoo’s can automatically:
- aggregate current data on each portfolio company’s overall income and expenses,
- conduct analyses to determine the simple performance of each company, considering both realised and unrealised profits and losses,
- present all this information for each portfolio company side-by-side for easy comparisons.
02 Calculating advanced performance metrics at both the fund and portfolio company levels
In addition to displaying each portfolio company’s current valuation and simple performance, a sophisticated digital solution for private equity monitoring, such as Altoo’s, can automatically perform more sophisticated calculations measuring performance at the fund and portfolio company levels, such as:
- total value to paid in capital (TVPI),
- residual value to paid in capital, (RVPI),
- distributions to paid in capital (DPI),
- Internal rate of return (IRR), and
- time weighted return (TWR).
Cumulative results can be presented visually to facilitate spotting patterns and trends.
The Altoo platform also simplifies a wide range of tasks at both the fund and portfolio company levels, allowing users to:
- keep track of and visualise capital commitments,
- record all investments transactions,
- show projected cash flows,
- set automated alerts for when customisable performance criteria are (or are not) met, and
- tag and view investments by sector.
03 Making analytical results easily accessible and understandable to stakeholders
A significant competitive advantage for PE firms lies in revolutionizing their stakeholder communications beyond traditional spreadsheets and slide decks. Today’s sophisticated investors have grown weary of these conventional formats, which often create barriers to quick insight extraction.
The Altoo Wealth Platform transforms this experience through intuitive, interactive data visualisation. Stakeholders gain immediate access to comprehensive analytical results within a few clicks, with the ability to seamlessly transition between high-level overviews and granular details based on their specific information needs. This dynamic approach eliminates the frustration of searching through lengthy email chains or navigating complex presentation decks.
Also, the platform’s secure, integrated messaging system creates a streamlined communication channel that centralises all performance-related discussions alongside the relevant data. This cohesive environment not only enhances transparency but also significantly improves the efficiency and clarity of stakeholder interactions, ultimately strengthening relationships through a more sophisticated, responsive approach to investor communications.
If you would like to learn more about how the platform can improve your firm’s operations and investor relations, please contact us for a demo.
