Fund of fund software is the holdings record for a fund whose portfolio companies are other funds. Each holding is a commitment to an underlying manager, drawn down over years, marked at that manager's reported net asset value each quarter, and reporting its own multiples and its own portfolio; fund of funds software has to keep that per underlying fund and roll it up, and fund of funds portfolio management software is the same record with the roll-up and the analytics on top. This page is what the record has to keep when the holdings are funds, worked on the same arithmetic this site uses for a company, and where the LP side of the same manager, its own investors and calls, belongs instead.
A holding that is a fund: commitment, drawn, mark
The cost of a fund holding is the capital drawn so far against a commitment, and it grows with every call the underlying manager makes; the mark is the underlying manager's reported net asset value for the position; the ownership is the fund's share of that manager's fund. The portfolio monitoring worksheet works a position from cost, ownership and mark whether the holding is a company or a fund; the record keeps the drawn-to-date figure moving.
Fund of funds portfolio management software: the roll-up over funds
Realised distributions received from the underlying funds against the cost drawn, and the unrealised marks against the rest: gross, realised and unrealised multiples, the unrealised share, concentration in the largest manager and the managers marked below cost. The private equity portfolio analytics worksheet works it from the same eight inputs it uses for companies, and a fund of funds' unrealised share reads high for longer, which the worksheet shows rather than hides.
The valuation roll-forward, with two timings
Opening marks plus capital drawn into the underlying funds, less the cost of what was distributed back, plus the change in the reported marks, is the closing value. A fund of funds' marks arrive a quarter late from each manager, so the roll-forward is usually run twice, once on estimates and once on the reported figures; the portfolio valuation roll-forward works either from five inputs and the paid plan keeps both.
The other side of the same manager
A fund of funds is also a fund with its own limited partners, its own capital calls and its own investor update, and that side, the commitments from its LPs and the report it sends them, is the relationship venture's product at rapportvo.com. Fund of fund software here is the holdings side: the underlying funds as positions, their marks, and the roll-up.
The commitment that is not yet cost
A $10,000,000 commitment to an underlying manager with $6,000,000 drawn is a $6,000,000 position with $4,000,000 still to come, and the two halves have to be kept apart. The drawn figure is the cost the multiple is worked on; the undrawn figure is the fund of funds' own future liability, which decides how much it can commit elsewhere and how much it has to hold or call from its own investors. A record that keeps only the commitment overstates the cost and understates the multiple; one that keeps only the drawn amount loses the liability. The holding is both numbers by quarter, and the roll-forward moves the drawn figure each time the manager calls.
Questions people ask about fund of fund software
What does fund of fund software keep that a direct fund's does not?
Per underlying fund: the commitment, the capital drawn to date as the position's cost, the manager's reported mark, and the distributions received as realisations. The roll-up and the analytics are the same arithmetic as for companies.
How is a fund holding's multiple worked?
Distributions received plus the reported mark, over the capital drawn into it. The portfolio monitoring worksheet works one holding; the analytics worksheet works the book.
Does LPreportly handle the fund of funds' own LPs?
No. The manager's own investors, calls and reports are the relationship venture's product at rapportvo.com. This hub keeps the holdings side, whether the holdings are companies or funds.