Portfolio monitoring, in a private equity or venture fund, is a quarterly loop with four steps: the KPI request goes to each portfolio company, the numbers come back and are filed against the holding, the position is marked at the fund's policy, and the review is written. Portfolio monitoring solutions are sold as the pipeline for the first two steps and the dashboard for the last; monitoring portfolio holdings at a small fund is the same loop run by one person with a spreadsheet, which is where it drifts. This page is the loop as the portfolio lead runs it, the four figures each holding comes down to, and the worksheets on this site that work them from the fund's own inputs.
Step one and two: the request, and the record it lands in
Each company reports in its own shape; the record is where the numbers land in one: revenue, cash, burn, headcount, whatever the fund collects, against the holding, by quarter. Portfolio monitoring solutions that automate the request are worth their price when the numbers land in the record; they are a second inbox when they stay in the vendor's portal. The paid plan keeps the KPIs by quarter once entered and runs no portal.
Step three: the mark, and the position it makes
The fund's valuation policy marks the company, usually at the last priced round; ownership times the mark is the position, $7,200,000 at 12% of $60,000,000 on the worked example, 1.8x on $4,000,000 of cost and 11.4% of a $63,000,000 fund. The portfolio monitoring worksheet works it from the mark as an input and publishes no valuation; the mark is the fund's and its auditor's.
Step four: the review, and the book
The company's quarter from its KPIs, growth of 50% and 12.5 months of runway on the worked example, built by the review sheet; and the book read as a whole by the analytics worksheet, gross, realised and unrealised, concentration and losses. Written from the record rather than the inbox, this quarter's review reconciles to last quarter's by construction.
What the loop is not
It is not the investor update the LPs receive, which draws on the marks but is the relationship venture's document at rapportvo.com; it is not the operating partner's work inside the company; and it is not a valuation method. Portfolio monitoring private equity teams run is the holdings' record kept honest each quarter, and that is the whole of what this hub does.
Questions people ask about portfolio monitoring private equity
What is portfolio monitoring in private equity?
The quarterly loop of requesting each portfolio company's KPIs, filing them against the holding, marking the position at the fund's policy, and writing the review. The worksheets on this site work each step's arithmetic free; the paid plan keeps the record.
What should portfolio monitoring solutions keep?
Each holding's cost, ownership, mark and KPIs by quarter, exportable as a table, so the position, the portfolio's analytics and the roll-forward are lookups. Whether they also run the KPI request portal is a suite question.
Does LPreportly collect the KPIs from the companies?
No. It keeps them by quarter once entered and works the figures; it runs no data-collection portal. The suites do that, and this is not a suite.