NetSuite & Private Equity Firms
Oracle NetSuite is the best ERP software option for managing sophisticated investment activities. It is used by wealth management and private equity organizations. Funds are raised by private equity (PE) firms to invest in privately held companies in an effort to improve profitability and create value for shareholders.
Investment management firms that offer financial support and engage in the private equity of startups or established businesses are known as private equity (PE) firms. Since that is how they create wealth for shareholders, they have a stake in the portfolio firms they manage succeeding.
In order to accomplish this, PE firms are dedicated to boosting growth and profitability in addition to managing these portfolio companies. PE firms want to see their portfolio flourish and continue to grow.
A digital transformation in the portfolio company is one of the most popular ways PE firms achieve this goal, and it is frequently the first project that is mandated. PE firms seek to build an IT infrastructure that can accommodate expansion, seeking a solution that can expand with the business.
IT infrastructure is nearly always upgraded during these changes, and NetSuite for private equity has emerged as a top ERP system of choice due to its quick setup, scalability, and easy configuration.
Scalability and Flexibility of NetSuite
When compared to on-premise options, a real cloud ERP program such as NetSuite for private equity firms offers a clear advantage.
On-premise systems need a lot of resources, time, and upkeep. Furthermore, scaling these systems with your company is difficult. For portfolio companies, which are expected to see significant business expansion as a result of PE firm investments, this can be particularly harmful.
Because of its subscription approach, which enables users to use the service as needed, NetSuite provides more flexibility. Because NetSuite’s real cloud architecture enables it to scale in tandem with a business’s growth rates, portfolio companies will also benefit from not having to worry about switching to a different solution as they expand.
Because NetSuite is versatile and scalable, it is a program that will continue to offer answers for a changing and quickly expanding business, which is why PE firms keep using it.
Financial Management
PE firms frequently invest in portfolio companies that have historically managed their finances using Excel or simple accounting software. As the business expands, this will no longer be a workable approach.
As a result, PE firms search for a solution that gives them access to all of their financial capabilities. The industry-leading solution, NetSuite for private equity firms, offers a comprehensive suite of financial management features, including accounting, billing, and financial management, among many others.
Visibility in Real Time
PE firms and their portfolio companies want a solution that gives them access to the business information they need in real-time so they can make strategic business decisions based on the whole truth.
Real-time dashboards that offer reporting and analysis for every process connected with NetSuite’s cloud software are built right in. These can be tailored to each user, so the information displayed is pertinent to you based on your role inside the portfolio company or PE firm.
This feature gives portfolio firms the real-time visibility they need to see problems, trends, or opportunities and gives them the information they need to take the appropriate action.
Growth requires real-time visibility, which is crucial for PE companies and their shareholders. NetSuite for private equity firms provides investors with the assurance that information is readily available and instantaneous.
Allocations
PE firms frequently have procedures to apportion expenses like overhead, employee payroll, and vendor bills (such as legal or consulting fees) using dynamic metrics because legal agreements usually compel them to maintain expense tracking at a specific degree of detail.
Although this can be a laborious, time-consuming, and error-prone task, using an automated allocation procedure greatly lowers the possibility of human error and boosts productivity during month-end close operations.
Advanced Reporting and Risk Management
With its robust reporting and analytics capabilities, NetSuite for private equity firms can give vital information on a range of business domains.
Businesses may monitor key performance indicators, delve into financial data, and spot possible growth prospects with its configurable dashboards and real-time analytics. These are some essential characteristics.
NetSuite Accounting for Private Equity Firms
The main issues that PE enterprises face because of the particulars of their business model are addressed by NetSuite’s carefully crafted PEM module.
The platform supports further customizable or custom solutions that can lessen pain points in end-to-end transactions and do away with manual operations.
As more private equity companies try to emulate their portfolio and embrace digital transformation, NetSuite for private equity firms has demonstrated that it can effectively meet business demands.
Security
PCI DSS and PA DSS, SSAE18 and ISAE 3402, ISO 27001 and 27018, SOC 1 Type 2, and SOC 2 Type are among the standards that NetSuite is audited to. NetSuite provides accurate financial statements and transaction records that stakeholders may rely on.
NetSuite for private equity firms has powerful roles-based access, strong encryption, and stringent password constraints. It also provides uninterrupted financial control monitoring with dashboards that facilitate the detection of fraudulent activity, email and alerts, saved searches, and reliable reporting.
PE Firms without ERP
Lengthy Spreadsheets
This so-called system of employing many spreadsheets and programs can become increasingly complex and challenging to maintain as it goes on. Since several people are manually entering data, this frequently results in a loss of control, maintenance issues, and greater human error.
No Data Visibility
Investors are unable to know what is happening within a firm and, ultimately, are unable to make well-informed investment decisions in the absence of complete data visibility and collaboration across many capabilities.
Difficult for Mergers & Acquisitions
For PE firms and the businesses they invest in, all of these situations are extremely typical. Having access to the required financial accounts enables investors to accurately evaluate each function and its profitability in many situations when certain activities or functions are separated from their original organization.
Consequently, this facilitates the transmission of these procedures. Additionally, it enables decision-makers to control access to certain data.
Disconnected Applications
Teams inside a corporation are not collaborating if they are utilizing multiple programs for different tasks. Applications would be seamlessly connected by a software integration, allowing data to move instantly between them. However, using NetSuite ERP as a company’s main platform guarantees that business operations won’t be disrupted.
Additionally, sales and operational teams can keep providing a satisfying customer experience with NetSuite for retail or e-commerce.
Folio3 for Private Equity Firms
NetSuite for private equity firms offers customized business tools made especially for the sector. Businesses can use a single platform to streamline processes throughout the portfolio with the aid of the NetSuite Private Equity Practice.
Since NetSuite is entirely cloud-based, you can adapt it to grow with your business. Furthermore, it can take the place of IT hardware, freeing up IT resources for other purposes.
The PE sector is using technology more frequently, according to our industry and technology consulting teams. Professionals at Folio3, a NetSuite Alliance partner, are aware of the configuration that NetSuite needs for private equity businesses. The adoption of NetSuibyeen private equity firms and their portfolio companies may result in higher profit margins, less waste, and a clear route to future transactions for both parties.
Folio3’s NetSuite experts can assist businesses with NetSuite implementation and platform customization with automation in mind, enabling increased productivity.
