Overview with tools, template, software, best practices and alternatives

Why do Private Equity companies do reports?

Private equity refers to a class of an asset that consists of equity debt and securities under operating companies and organizations that are not openly exchanged in a stock market. An investor, a venture capital company, or a private company are the ones that usually make a private equity investment. In addition, private-equity companies handle portfolio oversight as well as establishing deals and implementing transactions.

Private equity reports are done by private equity firms to communicate information and updates to the team members, team leaders, and concerned people like merges and acquisitions liaison, investment banks, and transaction professionals. The information indicated in the private equity report helps the private equity group to establish connections and build relationships with these people, allowing high-quantity and high-quality transaction flow.

Information such as the private equity team’s status, progress, achievements, problems, and plans is also indicated in the private equity report. Generally, the team status and progress allow the team to be updated on what is going on in the team and the project itself. The team’s achievements enable the team to know its pace and position in the market. Problems and issues are identified by the team as early as possible so as to discuss possible ways to solve actual issues and prevent potential issues.

Private equity teams also generate reports so as to present trends in the team’s performance. An increase in the trend indicates a good performance while a decline in the trend may be caused by a poor performance. Private equity teams will be able to discuss the trends in order to make plans, develop strategies, and implement actions.

Private equity reports are also developed by the private equity team to help establish links with other business owners, allowing the team to inform them about the team’s performance and achievements. The accomplishments made by the team increase the group’s competence in the market, which attracts more transaction leads.

How do Private Equity companies usually do Reports?

Reports for private equity present data on the activities, performance, status, and progress of the team and the project.

Private equity reports should be factual, accurate, complete, and updated, since they help form transactions and deals with other business firms. Without these elements, the private equity team will not be able to provide all necessary information to the prospect lead. As a result, the prospect lead may not be able to make an informed decision as they do not have full information about the activities of the private equity firm.

Achievements, issues, and plans are some of the necessary information to include in the private equity report. The team’s accomplishments signal the team’s strengths, allowing members to become motivated and inspired in performing their regular duties and responsibilities. Also, the team’s achievements can be equated to their capabilities and competence in the market, which entails that more accomplishments will attract more transaction leads.

Issues, which can be actual or potential, are also presented in the private equity report. Actual issues are the current problems experienced by the team while potential issues are the foreseen events that may become problems of the team in the future. Indicating them in the private equity report will help the team identify the problems as early as possible to solve actual issues and prevent smaller issues from becoming big problems.

Quantitative data are also included in the private equity report, as they show the figures or the numbers that show the trends in the market. Presenting quantitative information can be done through tables, charts, graphs, and diagrams, as they represent numbers and figures more effectively than the plain narrative text, which can be boring for some who will read it.

Typical questions/metrics/topics that are usually covered in a Report Private Equity companies are doing

  • How many deals have you closed?
  • How many transactions have you handled?
  • What are the available resources to the team?
  • What are the actual threats that you see? How are you going to solve them?
  • What are the potential problems that you foresee? How are you going to prevent them?
  • Do you have other concerns or issues?
  • What are your achievements for today?
  • What short and long term goals do you have in order to meet the company’s objectives?
  • What strategies and actions will you implement to meet the plans?
  • Were the strategies and actions previously implemented successful?
  • What are your strong and weak points when it comes to managing the team?
  • Do you see any open opportunities for improving your management skills?
  • What are the feedbacks of your subordinates on how you handle them?
  • What is the trend in your performance? What is its implication to your future performance?

Advantages & Best Practices of doing Reporting at Private Equity companies

Reporting for private equity is beneficial to the team for the following reasons.

Communication stands as the top advantage of doing private equity reports. The reports connect the team members and the team leaders, as well as the local team to other teams from other companies. In addition, private equity reports enable the team to be always updated and informed on the team’s status and progress.

The data in the private equity report are ensured to be complete, accurate, factual, and updated. This is to ensure that relationship with concerned parties, such as merger acquisitions intermediaries and investment banks, is established, preserved, and developed. Also, the private equity report also involves internal sourcing efforts, such as reducing the investment banking middleman’s fees, which can decrease the costs of transactions.

The team’s achievements, plans, and problems are also included in the private equity report. The accomplishments provide motivation and inspiration to the team members, as well as a momentum boost for the whole team. The plans of the team are also indicated in the report for the group to know the team’s next actions, which can be reviewed and scrutinized for effectiveness. Plans also serve as the backbone for developing strategies, executing actions, and evaluating outcomes.

Disadvantages & Pitfalls at doing Reporting at Private Equity companies

Reporting for private equity can be advantageous in several ways, but there are also times in which it can be a shortcoming to the team.

The private equity report should be highly detailed as the transaction and deal approval from prospect leads is on its hands. This means that team members have to pay attention to the contents of the report. Aside from a report that pays attention to minute detail, a good private equity report also contains facts, as well as complete and accurate information. The issue with this format is time. Writing a highly detailed report can be time consuming to the members of the private equity team. While the team members are already busy with their normal tasks and responsibilities, they still have to generate a report to update the entire team.

Another factor that is problematic in writing private equity reports is the tendency to rely on the internet connection in sending reports and updates. While the internet is very powerful in integrating and disseminating information to team members and leaders, poor and absent internet connection will stop the team from sending and receiving updates to and from other members through online means.

Why Teamreporter is great in doing Reporting at Private Equity companies?

Teamreporter is a business application that utilizes scheduled report mails to decrease the number of status meetings of the team. Small groups with up to four members can use the application for free. Also, signing up for an account is easy as it just takes up to less than a minute.

Teamreporter’s interface is automated and easy to use, allowing its users to send and receive information to and from other members of the team. Teamreporter sends e-mail notifications to the members of the team, asking them to send information on essential information, such as their accomplishments, plans, and problems. Based on the replies of the team members, Teamreporter will make a data summary, which will be sent to the whole team the next day.

Teamreporter can also help team leaders by providing as much information as possible. This way, team leaders will be able to have a clear oversight of the group’s performance, status, and progress. Also, the leaders will be able to determine those members who perform well and those members who need further assistance. Teamreporter’s information can also be used by team leaders in evaluating teams and their members, as well as in making training modules for the team.

Users can utilize Teamreporter within any workflow and environment as the application allows its users to change the questions and also the schedule of the report mails. Also, team members can integrate Teamreporter with existing applications the team is using. In addition, Teamreporter can be used along with a web browser or an e-mail.

Overall, Teamreporter is a helpful group to a private equity team.

Learn more about Teamreporter

Teamreporter is free for small teams (up to 4 members)