Fintech company Inveniam Capital Partners and Cascata Solutions, a provider of software that automates the calculation of waterfall processes, have agreed to bundle their software platforms, giving fund administrators digitized fund-related information and automated waterfall calculations.
Inveniam’s software platform, Inveniam.IO, tags and aggregates fund documents and key data within them – such as from LPAs and side letters to capital statements and summary reports – into a centralized repository where specific language and economics are readily accessible. Cascata’s software application provides an automated Excel output of fund calculations such as management fees and carried interest, as well as the formulas underpinning them.
With the new agreement between the two providers, “administrators now have all fund related information and calculations digitized, with full traceability and auditability at fund, deal and investor levels for clients and auditors,” said Cascata CEO Chuck Dooley.
Together, the applications extract more than 60 attributes and economics from LPAs and side letters, Dooley explained. Those are then uploaded to Cascata’s system via an API or the vendor’s automated file utility, and waterfall formulations are built. After the first carried interest calculation period, only incremental cashflows and NAV are uploaded to the system to perform all calculations, Dooley said.
Dooley said Cascata’s is the only application that offers an Excel output for fund calculation formulas and results, where others require shadow accounting to confirm their results. He also said the offering uniquely gives full and immediate access to key fund information in the application itself, rather via a portal or across multiple documents.
Inveniam president Kerry Rudy explained that the partnership will help fund admins and GPs organize and manage their unstructured documents of data, and gives investors greater transparency into their investment ownership position in these funds and about the operating performance of all of the funds’ portfolio companies.
“With Inveniam, we are providing [a] complete, transparent view of waterfall calculations and underlying formulas, and immediate access to all pertinent fund information for reconciliation and auditability in LPAs, side letters and NAV,” Dooley said.