BNY Mellon has announced the launch of an enhanced distribution "waterfall" capability as part of its private equity fund services.
Distribution waterfalls in a private equity fund establish how proceeds from realized investments will be divided between investors and the fund manager. It's also through the distribution waterfall that fund managers and principals receive their performance and incentive fees, or "carried interest."
"This major new offering marks the beginning of the end of spreadsheet calculations for private equity funds," said Alan Flanagan, global head of product management for alternative investment services at BNY Mellon in a statement. "Our automated and integrated waterfall solution brings the benefits of a more efficient, controlled environment, and that means improved risk management and more transparent reporting for investors and fund managers alike."