This fintech startup uses data to predict your investment success

As a technology-driven company, it places significant emphasis on staying at the forefront of the latest advancements in the industry. And recognizing the dynamic nature of technology, it proactively organises regular workshops, training sessions, and knowledge. The company distinguishes itself through a notable strength: an unwavering commitment to continually enhance and evolve its product offerings based on the invaluable feedback received from customers. Speaking to Bizz Buzz exclusively, Ankur Agarwal, Co-founder and CTO, PE Front Office Solutions, a fintech startup specializing in comprehensive products for the alternative investment management industry, explains how they leverage advanced analytics across its product suite to empower investment professionals with actionable insights, facilitating well-informed decisions throughout the alternative investment management lifecycle

What prompted you to float this company in the private equity technology space? What was the idea behind this?

I have worked in the technology sector for nearly 23 years and I’m currently the Co-founder and CTO at PE Front Office. Previously, I was the Enterprise Architect with Actis, and was responsible for the technology arm of all the business systems of the firm. I am a TOGAF 9 certified enterprise architecture practitioner. I have authored many articles on technology in Alternative Investments management space and also authored a book ‘Enterprise Technology for Private Equity’ that was published by PEI Media, UK in 2013.

While working at Actis I realised that the alternative investment management industry has been under-served due to very few IT solutions focused on investment management and investor relations management. With that thought in mind, we started the journey towards a SaaS solution offering a simple and seamless technological solution tailored for the alternative investment management industry.

Often, personal experiences shape our professional paths. Can you share how your personal background and experiences led you to the world of technology and eventually to founding PE Front Office?

My curiosity to find how things work continued as passion for technology into my education. I pursued BE which not only deepened my technical knowledge but also honed my problem-solving skills. For a large part of my initial career, I worked at Sapient, and the experience exposed me to the intricate workings of the tech industry and the vast opportunities it presented globally. While at Actis, the idea for PE Front Office came from recognizing the gap in the market for private equity technology. I guess my personal inclination and professional experiences had led me to understand this gap. The journey was challenging, but my background in technology and problem-solving skills were instrumental in overcoming these hurdles.

How does PE Front Office utilize or leverage advanced analytics within its suite of products to empower investment professionals with actionable insights, enabling them to make highly informed decisions across various stages of alternative investment management, from deal sourcing to exit strategies?

PE Front Office leverages advanced analytics across its product suite to empower investment professionals with actionable insights, facilitating well-informed decisions throughout the alternative investment management lifecycle. By seamlessly integrating and consolidating data from modules such as Deal Flow, Investment Management, Portfolio Monitoring, and Fund Management, the platform ensures that investment professionals access a comprehensive and unified view of relevant information.

PE Front Office utilizes analytics to continuously monitor and optimize performance. The platform consolidates investment cash-flows and valuation data, automatically computing performance ratios like IRR and MOC. It produces in-depth analytics encompassing financial and key performance indicators, enabling investment managers to make data-driven decisions and enhance the overall performance of their investment portfolios.

PE Front Office also incorporates what-if and scenario analysis, aiding investment managers in evaluating exit strategies by simulating diverse scenarios and market conditions. This functionality enhances strategic decision-making by offering insights into potential outcomes and their implications.

Moreover, PE Front Office goes beyond industry standards by not only providing ILPA-compliant reports but also offering customizable reporting and dashboards. This flexibility allows investment professionals to tailor analytics to their specific preferences and requirements, ensuring decision-makers receive insights in a format that aligns with their individual needs.

Can you please throw some light on the unique advantages and security features of PE Front Office's virtual, private cloud deployment option? How does the platform ensure dedicated and exclusive hosting for each customer?

Alternative Investment firms are of different sizes and are at different stages in terms of technology adoption for their operations across various teams. Investment in technology solutions is often delayed either due to resistance to change, perceived cost, or fear of the risk of failure. PE Front Office’s SaaS model alleviates all such concerns and supports deployment (big bang or phased roll-out) that is suitable to the firm.

For each customer, PE Front Office does a segregated set-up accessible via a customer-specific URL. Each customer has its own version of the application and database deployed in a secure, encrypted, publicly inaccessible virtual private cloud. PE Front Office further deploys tools for continuous monitoring, threat detection, and vulnerability scanning.

Given that PE Front Office solutions are configured to suit specific requirements, can you provide examples of how the platform has been tailored to meet the diverse needs of clients in Private Credit/Debt, Private Equity, Venture Capital, and other alternative investment sectors?

Tailoring solutions is essential for managing the unique demands of different market segments within the Alternative Investment Management industry. Initially, PE Front Office concentrated on the Private Equity and Venture Capital sectors, addressing fundamental needs like tracking funding rounds and capturing pre- and post-money valuations. Over time, this focus broadened to encompass additional segments, including Private Debt and Fund of Funds (FoF). We branched our solution to meet the requirements of the Fund of Funds, where comprehensive tracking of the entire ecosystem, covering investments in both Investee Companies and Investee Funds, is crucial. Furthermore, we enhanced the solution to meet the intricate demands of Private Debt Funds, involving the tracking of Amortization Schedules with multiple debt scenarios. We also tailored our solution to accommodate dynamic requirements such as Hedging and Revenue-based financing models. Recognizing the inadequacy of a one-size-fits-all approach to reporting, we initiated the provision of customized reports to align with each customer's specific reporting needs.

How does PE Front Office's Risk and Compliance Management feature contribute to ensuring regulatory adherence and mitigating risks in the complex landscape of alternative investment management?

PE Front Office focuses significantly on regulatory adherence and risk mitigation by providing a robust, adaptable, and automated framework that addresses the complexities inherent in alternative investment management. The system offers flexibility to align seamlessly with the ever-evolving regulatory frameworks governing the alternative investment sector. It not only allows capturing and tracking key compliance metrics but also automates the monitoring of compliance. This not only reduces the likelihood of human error but also enhances the efficiency of compliance checks, ensuring that all regulatory obligations are systematically tracked and met.

By maintaining robust data integrity and security measures, PE Front ensures that sensitive information is protected. This is crucial for regulatory compliance and contributes to building trust among investors. It maintains a detailed audit trail, documenting every action taken within the system. This not only facilitates transparency but also serves as a valuable resource during regulatory audits, demonstrating a commitment to compliance and due diligence.

Considering the increasing importance of virtualization and remote work, how does PE Front Office's suite of products facilitate internal collaboration, communication, and productivity for private equity firms and their portfolio companies?

PE Front Office plays a pivotal role in boosting internal collaboration, communication, and productivity for private equity firms and their portfolio companies amidst the increasing prevalence of virtualization and remote work. The solution's collaborative features empower investment teams to directly assign essential tasks to portfolio company teams, enhancing coordination and facilitating seamless collaboration between private equity firms and their portfolio companies.

With a user-friendly mobile app, PE Front Office allows investment teams to access vital portfolio information on the go, ensuring key decision-makers remain informed and engaged, regardless of their physical location. PE Front Office serves as a centralized hub for communication and document sharing, providing teams with the tools to collaborate efficiently, make well-informed decisions, and drive productivity in dispersed and virtual work environments.

Additionally, PE Front Office offers an innovative Investee Portal, streamlining data collection for private equity firms. This portal offers portfolio companies a seamless channel to input their Financial/KPI/ESG information, saving time and ensuring a smoother flow of information. These features not only enhance efficiency but also promote more effective financial and ESG monitoring within the PE Front Office ecosystem.