Automate waterfall calculations, capital call processing, LP portal, tax reporting, and multi-fund operations — reduce administration costs by 60%.
Private equity fund administration sits at the intersection of legal complexity, mathematical precision, and investor expectations that tolerate zero errors. A single fund family might span three vintage years, five co-investment vehicles, two feeders, and a carried interest structure that changes tiers based on aggregate net returns across the entire portfolio. Getting the waterfall wrong by a basis point erodes LP trust in a way that takes years to rebuild.
Layered on top is the operational burden: capital calls with pro-rata calculations that account for each LP's commitment, recycling provisions, and default remedies. Quarterly reports that reconcile across every entity in the structure. Tax documents that reflect jurisdiction-specific treatment of management fees, carried interest, and organizational expenses. And all of this needs to be auditable — not just internally, but by your fund's external auditor, your LPs' auditors, and potentially multiple regulators.
PoliBit eliminates this complexity by modeling your actual fund structure — master funds, SPVs, feeders, co-investment vehicles, and vintage tracking — and automating every calculation from capital calls through final distributions. Your team focuses on deploying capital and generating returns. PoliBit handles the operational infrastructure.
Purpose-built modules for private equity fund formation, administration, and LP relations.
How PoliBit automates each stage of the private equity fund lifecycle.
Expand each section to understand how the platform addresses the specific challenges of private equity fund operations.
PoliBit supports both European (whole-fund) and American (deal-by-deal) waterfall models, as well as hybrid structures. In European waterfalls, carried interest is calculated on aggregate net returns after all contributed capital and preferred returns are returned. In American waterfalls, carry is calculated per realized investment. The platform tracks both models simultaneously when fund terms require it — and handles the reconciliation between deal-level and fund-level performance automatically.
Configure catch-up rates and tiers as defined in your LPA. After LPs receive their preferred return, PoliBit calculates the GP catch-up allocation — whether 100% to the GP until the agreed split is reached, or a partial catch-up at a specified rate. The calculation accounts for management fee offsets, organizational expense allocations, and any prior distributions that affect the catch-up waterfall position.
PoliBit tracks cumulative distributions against the clawback threshold defined in your fund terms. When early deal-level distributions in an American waterfall exceed what the GP would have earned on a whole-fund basis, the platform calculates and flags the clawback obligation automatically. Escrow reserve calculations, true-up provisions, and interim clawback estimates are all maintained and reported to LPs quarterly.
Track management fee offsets against portfolio company fees — monitoring fees, transaction fees, director fees, and other GP-related revenues. PoliBit applies the offset percentage defined in your LPA to each fee category, reduces the management fee accordingly, and carries the offset through the carried interest calculation so that net-of-fee performance metrics are always accurate.
Manage co-investment vehicles alongside your main fund with separate carry structures, fee arrangements, and reporting templates. PoliBit handles allocation across the main fund and co-invest, tracks capital accounts separately, and generates consolidated reporting that shows each LP's total exposure across all vehicles — while maintaining the distinct waterfall and economics of each.
What changes when you move from spreadsheets or legacy administrators to a purpose-built platform.
See how private equity managers are cutting administration costs by 60% with PoliBit.
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