The client is a global long/short equity manager focused solely on investing in the technology, media, and telecommunications ("TMT") sectors.
Before PBI EDM, the client’s monthly workflow process for reconciliation and accounting was heavily dependent on a master Excel spreadsheet. The client wrestled with multigigabyte Excel files encompassing pivot tables and expression-based formulas. It took hours every month for the CFO to manage these incoming files, and given the complexity of their data models, the client soon realized it was no longer a sustainable solution.
The client uses four primary systems (Eze, Hazeltree, Lightkeeper, and Quickbooks). Each of these systems has a unique way of maintaining and sharing its data (Rest API, direct API, etc.). The firm needed a way to integrate seamlessly with all these files to utilize data that would assist the shadow NAV effort. The firm also wanted to provide managers with timely and accurate information for their reconcilement to administrators.
We implemented and developed the tools necessary to assist the shadow NAV effort based on a collection of broker-dealers and independent counterparty files from the client. The development of the shadow NAV tools required our team to build reconciliations as part of the workflow process to ensure that the shadow NAV aligned with their administrator’s NAV. In developing the shadow NAV tools, we created a dynamic architecture that allowed the client to not only manipulate line items but also adjust the dollar amount when needed. Additionally, we provided an investor allocation framework that helped emulate the client’s investor allocation spreadsheet process.
Although the most significant pain point in the company was manual processes, the decision to use PBI EDM was driven by a broader view. More than anything, they wanted to reduce key-person risk and to have a flexible tool to accommodate dynamic changes to the reconcilement infrastructure. They also recognized that with PBI EDM, the solutions could grow along with their business. By re-engineering their heavily laden, formula-based pivot tables which used unwieldy Excel VLOOKUP functions, PBI EDM was able to produce a replica of their master spreadsheet that produced their shadow NAV each month. Our platform saved the clients hours worth of work every month and eased their reconcilement efforts. In effect, Portfolio BI facilitated the client’s vision of having a single, reliable platform with timely access to trading, reconcilement, accounting, and market-related portfolio information. As a direct result of PBI EDM, the client is now able to identify reconcilement discrepancies quickly and can deliver results in an accurate, fast, cloud-based platform.