Developing a Conceptual Framework for Financial Data Validation in Private Equity Fund Operations

• Author(s): Olasunbo Olajumoke Fagbore ; Jeffrey Chidera Ogeawuchi ; Oluwatosin Ilori ; Ngozi Joan Isibor ; Azeez Odetunde; Bolaji Iyanu Adekunle
• Paper ID: 1708563
• Page: 116-136
• Published Date: 30-11-2020
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 4 Issue 5 November-2020

Abstract

This study explores the intricacies of equity fund operations with a focus on data validation, reporting accuracy, and operational transparency. Drawing upon foundational experience at Colmore, a leading private markets service provider, the research underscores the importance of validating large-scale financial records and reports to ensure investor confidence, regulatory compliance, and optimal fund performance. Equity funds, which pool capital for investment in ownership stakes across various industries, rely heavily on accurate net asset value (NAV) calculations, capital account balances, and performance metrics. The study analyzes how fund administrators manage complex data across capital calls, distributions, and management fee structures, often involving multi-layered partnerships and diversified portfolios. Using real-world scenarios at Colmore, where daily operations involve the reconciliation of financial transactions across fund managers, custodians, and limited partners, the research identifies critical control points that influence the integrity of financial reporting. Key processes such as cash flow tracking, waterfall modeling, and fee validation are examined to highlight the operational mechanisms that support fund transparency. Through methodical data validation techniques, discrepancies in capital allocations, carry calculations, and investment returns are resolved before impacting investor reporting. Furthermore, the research discusses the role of emerging technologies such as robotic process automation (RPA), artificial intelligence (AI), and blockchain in streamlining equity fund operations. These technologies enhance speed, reduce human error, and ensure scalability for fund administrators managing hundreds of investments globally. The study also touches on the regulatory landscape surrounding private equity fund reporting, including compliance with standards such as ILPA reporting templates and AICPA guidelines. By integrating foundational experience from a highly specialized operational role at Colmore, the study presents a comprehensive framework for improving data integrity, investor communication, and operational efficiency in equity fund administration. The findings advocate for continued investment in automation, real-time reconciliation, and robust audit trails as fundamental to the future of equity fund operations.

Keywords

Equity Fund Operations, Financial Validation, Private Equity, Fund Administration, Colmore, Capital Accounts, Performance Reporting, Data Integrity, Robotic Process Automation (RPA), Investor Transparency.

Citations

IRE Journals:
Olasunbo Olajumoke Fagbore , Jeffrey Chidera Ogeawuchi , Oluwatosin Ilori , Ngozi Joan Isibor , Azeez Odetunde; Bolaji Iyanu Adekunle "Developing a Conceptual Framework for Financial Data Validation in Private Equity Fund Operations" Iconic Research And Engineering Journals Volume 4 Issue 5 2020 Page 116-136

IEEE:
Olasunbo Olajumoke Fagbore , Jeffrey Chidera Ogeawuchi , Oluwatosin Ilori , Ngozi Joan Isibor , Azeez Odetunde; Bolaji Iyanu Adekunle "Developing a Conceptual Framework for Financial Data Validation in Private Equity Fund Operations" Iconic Research And Engineering Journals, 4(5)