Citco has launched Citco Waterfall, a proprietary technology that enables private equity firms to calculate waterfall payments for limited and general partners on a standardised platform.
Citco says the technology is the first of its kind and is available exclusively to the firm’s clients.
Citco Waterfall is designed to fill what the firm describes as a major gap in private equity fund administration offerings. Replacing a process for determining waterfalls that is labour-intensive and inefficient, Citco’s technology automates and standardises the waterfall calculation process, while maintaining maximum flexibility to account for a wide range of fund partnership agreements, scenarios, and tiers that may require unique, tailored methodologies.
In addition, the Citco Waterfall programme features an intuitive dashboard that is designed to enable managers to visualise their calculations and access formulas and data.
Nikolaos Perros, head of private equity and real estate services, says: “At Citco, we are deeply attuned to the needs, priorities, and operational challenges that face our alternative investment fund clients. While waterfall calculations are integral to private equity firms’ operations, the predominant process underlying those calculations (complex Excel-based models) requires manual inputs and linkages to multiple spreadsheets that cannot be scaled and often times cannot be leveraged from one fund to the next. We created Citco Waterfall so that we could provide our private equity clients with a state-of-the-art technology that not only is unprecedented in fund administration but would also alleviate a significant administrative burden and enable them to run their businesses more efficiently.”
